Perspecta Takes Revenue Hit Due To COVID-19

U.S. government services provider Perspecta is hoping to finish off this year on a high note.

The company, formed in 2018 after the merger of the U.S. Public Sector Business of DXC Technology with Vencore Holding Corporation and KeyPoint Government Solutions, services U.S. government customers in defense, intelligence, civilian, healthcare and state and local markets. Perspecta offers mission services, digital transformation, and enterprise operations and currently has a team of nearly 14,000 engineers, analysts, investigators, and architects.

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Like many companies, Perspecta has been impacted by the COVID-19 pandemic. The company has dealt with procurement delays as intelligence agencies limited on-site access. As a result, Perspecta CEO Mac Curtis recently told analysts that over half of its sites now operate at less than or equal to 50 percent occupancy.

Perspecta’s second quarter revenue of $1.11 billion included a $23 million reduction because of the pandemic, and the company has updated its full fiscal year financial outlook to include an expected $75 million decline in revenue, as well as a $20 million decrease to adjusted EBITDA.

Yet the company just received some good news -- it has been awarded a new Data Center Two (DC2) Support Services contract from the U.S. Department of Homeland Security (DHS). The contract has a two-year base with two six-month option periods and a potential value of $112 million.

Perspecta will provide DHS headquarters and all authorized components with full-scope managed services to support DC2 operations and consolidation, including baseline data center hosting and engineering services, as well as application and system migration, retirement, planning, and execution support.

"This award reinforces our standing as a premier provider of end-to-end next generation managed IT services," said Rocky Thurston, senior vice president and general manager of Perspecta's civilian, state, and local business group. "It will also support DHS' strategic efforts to consolidate and optimize data centers."

The news follows the company’s announcement last month that it had received an award to continue work on the U.S. Army’s Total Ammunition Management Information System (TAMIS), which has a potential value of $34 million.