Core Viewpoint - Daily Journal Corporation is addressing allegations from Buxton Helmsley USA, Inc. regarding improper accounting practices related to software development costs, asserting that it has complied with accounting standards [1][2]. Group 1: Allegations and Responses - Buxton Helmsley USA, Inc. claims that Daily Journal Corporation should capitalize its software development costs instead of expensing them, suggesting this change would unlock shareholder value [2]. - The Audit Committee of Daily Journal Corporation reviewed the allegations and confirmed that the company is correctly accounting for its software development costs in accordance with ASC 950-20 [3]. Group 2: Accounting Standards Explanation - Historically, software companies followed ASC 985-20, which allows capitalization of development costs only after technological feasibility is established and before general release [4]. - The evolution of software development practices, particularly the adoption of agile methodologies, has shortened the capitalization window, making it rare for companies to incur significant costs eligible for capitalization [6]. - Companies developing software as a service (SaaS) may capitalize costs under ASC 350-40, which has a longer development window compared to ASC 985-20 [7]. Group 3: Misunderstandings and Clarifications - Buxton Helmsley USA, Inc. appears to have misunderstood the accounting practices of other companies, as they likely use different standards for capitalizing costs [8]. - Daily Journal Corporation emphasizes that it will continue to expense development costs when appropriate and capitalize them when justified, ensuring transparency in reporting R&D costs [9]. Group 4: Call for Resolution - Daily Journal Corporation urges Mr. Parker to cease his unfounded attacks and allow the company to focus on creating actual business value for shareholders [11].

Financial Data and Key Metrics Changes - CACI reported revenue growth of 12% for Q3 2025, with total revenue reaching $2.2 billion, of which 5.6% was organic growth [9][32] - EBITDA margin improved to 11.7%, reflecting a year-over-year increase of 40 basis points [32] - Free cash flow for the quarter was $188 million, showing strong sequential and year-over-year increases [35][40] - Adjusted diluted earnings per share increased by 9% year-over-year to $6.23 [33] Business Line Data and Key Metrics Changes - The company won $2.5 billion in awards during the quarter, resulting in a book-to-bill ratio of 1.2 times for the quarter and 1.5 times on a trailing twelve-month basis [9][42] - The backlog increased by 10% year-over-year to $31 billion, representing nearly four years of annual revenue [42] Market Data and Key Metrics Changes - CACI continues to see strong demand signals from customers, driven by geopolitical realities and a supportive funding environment for national security spending [12][17] - The company has a pipeline of $17 billion in bids under evaluation, with nearly 80% being for new business [44] Company Strategy and Development Direction - CACI's strategy focuses on software-defined capabilities, aligning with the new administration's priorities for national security [13][18] - The company is positioned to benefit from increased defense budgets and bipartisan support for national security initiatives [30][80] - CACI has raised its fiscal year 2025 guidance for revenue, adjusted EPS, and free cash flow due to strong business performance [10][38] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving three-year financial targets and highlighted a constructive funding environment with healthy budgets [11][30] - The company anticipates continued demand for its services, particularly in areas like electronic warfare and border security [88][92] Other Important Information - CACI initiated an open market share repurchase program, buying back 436,000 shares at an average price of about $344 per share [35][36] - The company has completed 12 acquisitions since FY21, demonstrating a flexible and opportunistic capital deployment approach [36][37] Q&A Session Summary Question: How has contract growth trended since the change in administration? - Management noted no significant slowdown in on-contract growth and highlighted a strong level of RFPs being responded to [54][56] Question: How much revenue is already in the backlog for FY '26? - Management indicated that no single program accounts for more than 5% of revenue and described FY '26 as a moderate recompete year [57][58] Question: What are the implications of the DOD memo about insourcing or updating acquisition for tech? - Management sees the executive orders as a net positive for CACI, aligning with their software-defined capabilities strategy [61][64] Question: Can you discuss the budget cadence and outlay mechanics? - Management emphasized the positive impact of the full-year continuing resolution, allowing for new starts and greater funding flexibility [75][80] Question: What specific areas of incremental funding represent the biggest opportunities? - Management highlighted electronic warfare, border security, and DOD IT modernization as key areas for future growth [88][92] Question: How is the integration process going for the Azure Summit acquisition? - Management reported that the integration is progressing well, enhancing capabilities and aligning with customer needs [113][114]