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Also traded in: Germany

GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 5/10

vs
industry
vs
history
Cash-to-Debt 0.89
KEYW's Cash-to-Debt is ranked lower than
88% of the 1921 Companies
in the Global Software - Application industry.

( Industry Median: 10.13 vs. KEYW: 0.89 )
Ranked among companies with meaningful Cash-to-Debt only.
KEYW' s Cash-to-Debt Range Over the Past 10 Years
Min: 0  Med: 0.22 Max: No Debt
Current: 0.89
Equity-to-Asset 0.60
KEYW's Equity-to-Asset is ranked lower than
62% of the 1830 Companies
in the Global Software - Application industry.

( Industry Median: 0.60 vs. KEYW: 0.60 )
Ranked among companies with meaningful Equity-to-Asset only.
KEYW' s Equity-to-Asset Range Over the Past 10 Years
Min: 0.49  Med: 0.65 Max: 0.93
Current: 0.6
0.49
0.93
Interest Coverage N/A
KEYW's Interest Coverage is ranked higher than
67% of the 1467 Companies
in the Global Software - Application industry.

( Industry Median: 173.79 vs. KEYW: N/A )
Ranked among companies with meaningful Interest Coverage only.
KEYW' s Interest Coverage Range Over the Past 10 Years
Min: N/A  Med: N/A Max: No Debt
Current: N/A
N/A
No Debt
Piotroski F-Score: 5
Altman Z-Score: 1.81
Beneish M-Score: -2.72
WACC vs ROIC
6.44%
1.99%
WACC
ROIC
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 4/10

vs
industry
vs
history
Operating Margin % 2.65
KEYW's Operating Margin % is ranked higher than
50% of the 1862 Companies
in the Global Software - Application industry.

( Industry Median: 4.84 vs. KEYW: 2.65 )
Ranked among companies with meaningful Operating Margin % only.
KEYW' s Operating Margin % Range Over the Past 10 Years
Min: -5.91  Med: 1.14 Max: 6.71
Current: 2.65
-5.91
6.71
Net Margin % -5.02
KEYW's Net Margin % is ranked lower than
75% of the 1863 Companies
in the Global Software - Application industry.

( Industry Median: 3.19 vs. KEYW: -5.02 )
Ranked among companies with meaningful Net Margin % only.
KEYW' s Net Margin % Range Over the Past 10 Years
Min: -19.68  Med: -4.31 Max: 10.1
Current: -5.02
-19.68
10.1
ROE % -5.68
KEYW's ROE % is ranked lower than
75% of the 1803 Companies
in the Global Software - Application industry.

( Industry Median: 6.16 vs. KEYW: -5.68 )
Ranked among companies with meaningful ROE % only.
KEYW' s ROE % Range Over the Past 10 Years
Min: -21.28  Med: -3.56 Max: 9.19
Current: -5.68
-21.28
9.19
ROA % -3.09
KEYW's ROA % is ranked lower than
71% of the 1927 Companies
in the Global Software - Application industry.

( Industry Median: 2.92 vs. KEYW: -3.09 )
Ranked among companies with meaningful ROA % only.
KEYW' s ROA % Range Over the Past 10 Years
Min: -12.73  Med: -2.77 Max: 8.01
Current: -3.09
-12.73
8.01
ROC (Joel Greenblatt) % 11.41
KEYW's ROC (Joel Greenblatt) % is ranked lower than
51% of the 1883 Companies
in the Global Software - Application industry.

( Industry Median: 23.13 vs. KEYW: 11.41 )
Ranked among companies with meaningful ROC (Joel Greenblatt) % only.
KEYW' s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: -17.15  Med: 15.63 Max: 210.2
Current: 11.41
-17.15
210.2
3-Year Revenue Growth Rate -4.90
KEYW's 3-Year Revenue Growth Rate is ranked lower than
76% of the 1454 Companies
in the Global Software - Application industry.

( Industry Median: 5.30 vs. KEYW: -4.90 )
Ranked among companies with meaningful 3-Year Revenue Growth Rate only.
KEYW' s 3-Year Revenue Growth Rate Range Over the Past 10 Years
Min: -4.9  Med: 2.1 Max: 34.2
Current: -4.9
-4.9
34.2
3-Year EBITDA Growth Rate 6.60
KEYW's 3-Year EBITDA Growth Rate is ranked lower than
53% of the 1210 Companies
in the Global Software - Application industry.

( Industry Median: 8.40 vs. KEYW: 6.60 )
Ranked among companies with meaningful 3-Year EBITDA Growth Rate only.
KEYW' s 3-Year EBITDA Growth Rate Range Over the Past 10 Years
Min: -37  Med: 6.6 Max: 470.8
Current: 6.6
-37
470.8
GuruFocus has detected 1 Warning Sign with KEYW Holding Corp $KEYW.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
» KEYW's 30-Y Financials

Financials (Next Earnings Date: 2017-06-08 Est.)


Revenue & Net Income
Cash & Debt
Operating Cash Flow & Free Cash Flow
Operating Cash Flow & Net Income

» Details

Guru Trades

Q2 2016

KEYW Guru Trades in Q2 2016

Ron Baron 85,027 sh (+17.57%)
Chuck Royce 830,997 sh (+15.71%)
Jim Simons Sold Out
» More
Q3 2016

KEYW Guru Trades in Q3 2016

Joel Greenblatt 21,950 sh (New)
Paul Tudor Jones 14,449 sh (New)
Jim Simons 27,500 sh (New)
Ron Baron 86,500 sh (+1.73%)
Chuck Royce 804,180 sh (-3.23%)
» More
Q4 2016

KEYW Guru Trades in Q4 2016

Jim Simons 323,900 sh (+1077.82%)
Ron Baron 95,000 sh (+9.83%)
Paul Tudor Jones Sold Out
Chuck Royce 749,100 sh (-6.85%)
Joel Greenblatt 14,020 sh (-36.13%)
» More
Q1 2017

KEYW Guru Trades in Q1 2017

Ron Baron 228,000 sh (+140.00%)
Chuck Royce 986,430 sh (+31.68%)
Joel Greenblatt Sold Out
Jim Simons 298,326 sh (-7.90%)
» More
» Details

Insider Trades

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Business Description

Industry: Application Software » Software - Application    NAICS: 561621    SIC: 7382
Compare:NAS:JIVE, NAS:UPLD, NAS:ACTA, OTCPK:IDXAF, NYSE:NQ, NAS:BV, NAS:MGIC, NAS:MOBL, NYSE:MODN, NAS:GSUM, OTCPK:OPESF, NAS:ZIXI, NAS:PDFS, NAS:AMSWA, NYSE:ECOM, NAS:QADB, NAS:VDSI, NAS:MITK, OTCPK:BRDLF, OTCPK:DOTDF » details
Traded in other countries:ZKW.Germany,
Headquarter Location:USA
KEYW Holding Corp provides engineering services, cybersecurity and analytic products, and integrated platforms that support the entire intelligence process, including collection, processing, analysis and impact.

KEYW Holding is a provider of mission-critical cybersecurity, cybersuperiority, and geospatial intelligence solutions to U.S. government defense, intelligence, and national security agencies. Its solution includes collection, processing, analysis, and dissemination of intelligence information in cyberspace and geospace domains. The company derives revenue from fixed-price contracts and software licensing and maintenance. KEYW Holding generates a large majority of its revenue from the U.S. Department of Defense, and the rest of it from other intelligence agencies and commercial enterprises in the United States.

Guru Investment Theses on KEYW Holding Corp

Baron Funds Comments on The KEYW Holding Corp - Aug 10, 2016

The KEYW Holding Corporation (NASDAQ:KEYW) is a government services company that specializes in cybersecurity and intelligence gathering applications. Shares have increased dramatically since fourth quarter earnings. At that time, the incoming CEO announced his strategic initiatives to drive growth in the core services business, and to stem operating losses and/or sell KEYW’s money losing commercial cybersecurity software business. In the second quarter, management executed against this strategy by completing the divestiture of the commercial software business, and by significantly increasing its backlog of government services business. This has started to unlock what he have always believed is the hidden value in the company. The market has finally recognized this as well, and the stock now trades at a more reasonable sector valuation.



From Baron Discovery Fund's second quarter 2016 commentary.





Check out Ron Baron latest stock trades

Top Ranked Articles about KEYW Holding Corp

KeyW Announces Changes to Executive Leadership Team
KeyW to Report First Quarter 2017 Financial Results on Wednesday, May 3, 2017
KeyW Completes Acquisition of Sotera Defense Solutions
KeyW and Sotera Defense Solutions Announce Early Termination of Hart-Scott-Rodino Waiting Period

HANOVER, Md., March 27, 2017 (GLOBE NEWSWIRE) -- The KeyW Holding Corporation (NASDQ:KEYW) and Sotera Defense Solutions today announced that, on March 24, 2017, The KeyW Holding Corporation (KeyW) and Sotera Defense Solutions (Sotera) received notice from the U.S. Federal Trade Commission that it had granted early termination, effective immediately, of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (HSR Act) for KeyW’s pending acquisition of Sotera. The early termination of the waiting period under the HSR Act satisfies one of the conditions to the closing of the transaction. The transaction is expected to close in the second calendar quarter of 2017.
About KeyW
KeyW is a total solutions provider for the Intelligence, Cyber and Counterterrorism Communities' toughest challenges. We support the collection, processing, analysis and dissemination of information across the full spectrum of their missions. We employ and challenge more than 1,000 of the most talented professionals in the industry with solving such complex problems as preventing cyber threats, transforming data into intelligence and combating global terrorism. About Sotera
Sotera is an agile, mid-sized national security technology company that delivers innovative systems, solutions and services in support of the critical missions and programs of Civilian Agencies, Department of Defense, Intelligence Community, Department of Homeland Security, federal law enforcement agencies and other parts of the federal government charged with ensuring the safety and security of our nation. Our 1,100 employees remain focused on delivering essential enterprise IT, cyber security systems and operations, data fusion and analytics, intelligence analysis, and C5ISR solutions to our customers throughout the Federal Government. Forward-Looking Statements
Statements made in this press release that are not historical facts constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include but are not limited to: statements about our future expectations, plans and prospects; statements regarding  our strategies, plans, and operations; and other statements containing the words "estimates," "believes," "anticipates," "plans," "expects," "will," "potential," "opportunities," and similar expressions. Our actual results, performance or achievements or industry results may differ materially from those expressed or implied in these forward-looking statements. These statements involve numerous risks and uncertainties, including but not limited to those risk factors set forth in our Annual Report on Form 10-K, dated and filed March 15, 2017 with the Securities and Exchange Commission (SEC) as required under the Securities Act of 1934, and other filings that we make with the SEC from time to time. Due to such uncertainties and risks, readers are cautioned not to place undue reliance on such forward-looking statements. KeyW is under no obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise.
Contact:
Heather Williams
Corporate Media Relations
[email protected]
443.733.1613

Chris Donaghey    
Investor Relations
[email protected]
443.733.1600

Read more...
KeyW Launches Mobile Persistent Cyber Training Environment

Solution Delivers Integrated Classroom and Hands-on Practical Exercises at Any Location

HANOVER, Md., March 22, 2017 (GLOBE NEWSWIRE) -- The KeyW Holding Corporation (NASDQ:KEYW) today announced the launch of its Persistent Cyber Training Environment—Mobile (PCTE—Mobile) solution, an extension of its traditional advanced, integrated cyber mission training platform.
PCTE-Mobile is a self-contained, fully functional classroom—available for use at any location—that delivers wired and wireless connectivity to KeyW’s flexible, fully configurable virtual cyber training environment. The solution integrates classroom instruction with extensive hands-on practical exercises that leverage open-source tools and real-world case studies. “PCTE-Mobile brings the power of the data center to students anywhere in the world,” said Greg Dixon, vice president of KeyW’s Advanced Cyber Operations Sector. “It greatly reduces travel costs for our customers and minimizes total ownership costs regarding student, infrastructure and content management—while driving proficiency in mission-centric offensive and defensive methodologies.” PCTE-Mobile delivers a proven interactive training environment, certified instructors, custom training for any mission requirement and a speed-to-competency advantage for the cyber workforce. Contact [email protected] for information on PCTE-Mobile pricing, customization and scheduling. About KeyW KeyW is a total solutions provider for the Intelligence, Cyber and Counterterrorism Communities' toughest challenges. We support the collection, processing, analysis and dissemination of information across the full spectrum of their missions. We employ and challenge more than 1,000 of the most talented professionals in the industry with solving such complex problems as preventing cyber threats, transforming data into intelligence and combating global terrorism. Forward-Looking Statements: Statements made in this press release that are not historical facts constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include but are not limited to: statements about our future expectations, plans and prospects; statements regarding  our strategies, plans, and operations; and other statements containing the words "estimates," "believes," "anticipates," "plans," "expects," "will," "potential," "opportunities," and similar expressions. Our actual results, performance or achievements or industry results may differ materially from those expressed or implied in these forward-looking statements. These statements involve numerous risks and uncertainties, including but not limited to those risk factors set forth in our Annual Report on Form 10-K, dated and filed March 15, 2017 with the Securities and Exchange Commission (SEC) as required under the Securities Act of 1934, and other filings that we make with the SEC from time to time. Due to such uncertainties and risks, readers are cautioned not to place undue reliance on such forward-looking statements. KeyW is under no obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise.
Contact:
Heather Williams
Corporate Media Relations
[email protected]
443.733.1613

Chris Donaghey    
Investor Relations
[email protected]
443.733.1600

Read more...
KeyW Enters into Employment Agreements with Four Employees of Sotera Defense Solutions

Agreements in Connection with KeyW’s Plan to Acquire the Company

HANOVER, Md., March 13, 2017 (GLOBE NEWSWIRE) -- The KeyW Corporation (“KeyW”), a wholly-owned subsidiary of The KeyW Holding Corporation (NASDAQ:KEYW) (“Holdings”), announced today that in connection with its definitive agreement to acquire Sotera Defense Solutions  (Sotera), KeyW entered into employment agreements with four Sotera employees. The employment agreements provide for grants of inducement equity awards outside of Holdings’ Amended and Restated 2013 Stock Incentive Plan, in accordance with NASDAQ Listing Rule 5635(c)(4). The agreements and grants were authorized by the Compensation Committee of Holdings’ Board of Directors, as inducements material to the four individuals entering into employment with KeyW following the closing of the acquisition. The inducement grants, which are issuable upon commencement of the individuals’ employment, consist of an aggregate of 20,000 restricted shares of Holdings’ common stock as a retention incentive inducement, and up to an aggregate of 200,000 shares of Holdings’ common stock as a long-term incentive inducement that will be granted during the five-year period following commencement of employment, in the amounts set forth below, provided Holdings’ stock price exceeds the applicable target share prices set forth below for at least 30 consecutive trading days: Target Price Per ShareLong-Term Incentive Shares$13.0025,000$16.0025,000$20.0050,000$25.0050,000$30.0050,000 The issuance and vesting of the inducement shares will be contingent upon the individuals’ continued employment with KeyW, subject to acceleration upon certain events. ABOUT SOTERA Sotera is an agile, mid-sized national security technology company that delivers innovative systems, solutions and services in support of the critical missions and programs of Civilian Agencies, Department of Defense, Intelligence Community, Department of Homeland Security, federal law enforcement agencies and other parts of the federal government charged with ensuring the safety and security of our nation. Our over 1,100 employees remain focused on delivering essential enterprise IT, cyber security systems and operations, data fusion and analytics, intelligence analysis, and C5ISR solutions to our customers throughout the Federal Government. ABOUT KeyW KeyW is a total solutions provider for the Intelligence, Cyber and Counterterrorism communities' toughest challenges. We support the collection, processing, analysis and dissemination of information across the full spectrum of their missions. We employ and challenge more than 1,000 of the most talented professionals in the industry with solving such complex problems as preventing cyber threats, transforming data into intelligence and combating global terrorism. Forward-Looking Statements: Statements made in this press release that are not historical facts constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include but are not limited to: statements about our future expectations, plans and prospects; statements about expected bid activity, customer wins and increased organization efficiency; statements regarding our pending acquisition of Sotera Defense Systems; our full-year 2017 revenue and adjusted EBITDA margin estimates under the heading “Financial Outlook” and other statements containing the words “estimates,” “believes,” “anticipates,” “plans,” “expects,” “will,” “potential,” “opportunities,” and similar expressions. Our actual results, performance or achievements or industry results may differ materially from those expressed or implied in these forward-looking statements. These statements involve numerous risks and uncertainties, including but not limited to, those risk factors set forth in our Annual Report on Form 10-K for the year ended December 31, 2015 filed with the SEC on March 15, 2016 and our subsequent Quarterly Reports on Form 10-Q for the fiscal quarters ended March 31, 2016, June 30, 2016 and September 30, 2016 filed with the SEC on May 10, 2016, August 9, 2016 and November 2, 2016, respectively, as required under the Securities Act of 1934, as amended, our prospectus supplement, dated and filed with the SEC on January 27, 2017, with respect to our prospectus, dated December 22, 2016 included in our registration statement amendment on Form S-3/A (Registration No. 333-215115) filed with the SEC on December 21, 2016, and other filings that we make with the SEC from time to time. Due to such uncertainties and risks, readers are cautioned not to place undue reliance on such forward-looking statements. KeyW is under no obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise, unless required by law.
Contacts:
Heather Williams
Corporate Media Relations
443.733.1613
[email protected]

Chris Donaghey    
Investor Relations
443.733.1600
[email protected]

Read more...
KeyW Enters Into Definitive Agreement to Acquire Sotera Defense Solutions

Combination will create differentiated, pure-play Intelligence Community-focused provider of scale;

Transaction accelerates KeyW’s previously articulated growth strategy;

Offers high-end portfolio of products and services in support of the most difficult and complex national security and counterterrorism missions;

Will maintain strong adjusted EBITDA margin profile of 10 %; and

Projected to be immediately accretive to adjusted EPS in fiscal year 2017; GAAP EPS in 2018.
HANOVER, Md., March 08, 2017 (GLOBE NEWSWIRE) -- The KeyW Holding Corporation (NASDAQ:KEYW) today announced that its wholly-owned operating company, The KeyW Corporation, has signed a definitive agreement to acquire Sotera Defense Solutions (Sotera) in an all-cash transaction valued at approximately $235 million, inclusive of an expected $46 million net present value of acquired tax benefits. This transaction will augment the strengths of each company to create a leading pure-play products and solutions provider to the Intelligence Community (IC) and related customers with expected combined pro-forma revenue of approximately $535 million in 2017. The transaction, approved by the boards of directors of both companies, has received the requisite approval of the Sotera shareholders, and, subject to other customary conditions, is expected to close in the second quarter of 2017. The transaction is expected to be immediately accretive to 2017 adjusted EPS (GAAP EPS, excluding transaction expenses) and significantly accretive to 2018 GAAP EPS. Under the terms of the agreement, Sotera will become a wholly-owned subsidiary of The KeyW Corporation following the transaction. “Both KeyW and Sotera deliver advanced technologies to the Intelligence, Cyber and Counterterrorism communities to secure our nation and its allies,” said Bill Weber, KeyW’s chief executive officer. “We share a common goal to expand our footprints among IC customers and leverage unique capabilities to significantly benefit existing and new customers, as well as add scale. This combination will provide customers access to these high-value solutions while also creating new opportunities for our employees and driving additional value for shareholders.” Sotera Defense Solutions, formerly known as Global Defense Technology & Systems, Inc., is privately owned by funds managed by Ares Management, L.P. Sotera is a prime contractor on approximately 80% of its work, and is expected to generate an estimated $225 million in revenue and $20 million in adjusted EBITDA in calendar year 2017. Together, KeyW and Sotera will deliver an advanced portfolio of solutions, including cyber, geospatial, cloud and data analytics, engineering, analysis and operations and machine learning. On a pro-forma basis, the combined company is expected to generate approximately $535 million in revenue and more than $55 million in adjusted EBITDA in 2017 before synergies. “We’re pleased to join forces with KeyW,” said Deb Alderson, chief executive officer of Sotera Defense Solutions. “The customers, contracts and offerings of each business complement each other well and will be attractive for all stakeholders. Our team’s focus and solid execution made Sotera the superb company it is today. Sotera looks forward to working with Bill and the KeyW management team on a smooth integration that allows us to leverage our combined capabilities to create added near-term value for our customers’ vital missions.” “This transaction is demonstrative of the impressive national security platform that the team at Sotera has built,” said Matthew Cwiertnia, partner in the Ares Private Equity Group. “In particular, we want to thank Deb for her leadership and tireless commitment to the company. It has been a pleasure to be her partner.” SUMMARY OF STRATEGIC AND FINANCIAL BENEFITS Together, KeyW and Sotera expect to provide significant benefits to customers, employees and shareholders alike: Provides New and Enhanced Access to Agencies within the IC: Sotera will add high-priority new customer agencies to KeyW’s existing IC portfolio, including highly sought-after FBI and DHS customers, and create additional inroads at new areas of the DoD (e.g., Army Intelligence). The new customer base is expected to accelerate KeyW’s organic expansion plan.
 Adds Significant Scale, Creating Unique, IC-Focused Provider: The transaction will create a pure-play IC-focused services provider with an estimated $535 million of pro forma 2017 revenue and approximately 2,100 skilled employees, with approximately 80% having Top Secret and above clearances. The scale of the combined companies will provide a more competitive cost model to drive additional growth.
 Adds New and Complementary Capabilities for IC Customers: Sotera will add complementary capabilities to KeyW’s existing suite in agile software and solution development, cyber security and data analytics. In addition, the new KeyW will offer customers advanced emerging technologies focused on machine learning and big data solutions.
 Provides Access to Large Portfolio of Prime Contracts and IDIQ Vehicles: Sotera will bring more than 12 prime IDIQ and GWAC contract vehicles to the combined company, which will expand KeyW’s overall presence in the IC and DoD. The combined contract portfolio provides the opportunity to sell both KeyW and Sotera capabilities to new and existing customers with an enhanced business development function. Sotera’s impressive BD infrastructure, combined with KeyW’s recently transformed BD function, will accelerate KeyW’s goal of having the IC’s leading BD capability going forward.
 Highly-Achievable Cost Synergies: The transaction expects to yield approximately $3.5 million of cost synergies within the fiscal year 2017, and approximately $7 million within 12-18 months.
 Enhanced Cash Flow Profile and Accretive to Earnings Per Share (EPS): The cash flow profile of the combined business will enable deleveraging beginning immediately; the anticipated tax attributes will increase net cash flow through an expected reduction of cash tax expense. The deal is expected to be immediately accretive to FY2017 adjusted EPS and GAAP EPS accretive in FY2018. TRANSACTION STRUCTURE KeyW intends to fund the transaction with proceeds from a new secured credit facility arranged by RBC Capital Markets and cash on hand. The combined company will have pro forma debt to trailing 12-month adjusted EBITDA (as defined for credit facility purposes) of approximately 4.4x. The merger structure is expected to preserve certain tax attributes (subject to applicable U.S. Code 382 limitations on net operating loss carryforwards), providing tax benefits with an expected net present value of approximately $46 million. GOVERNANCE AND LEADERSHIP The combined company will be governed by KeyW’s current board of directors, and Bill Weber, KeyW’s CEO, will lead the company. Additional leaders will be drawn from both companies and named as the integration progresses. The headquarters of the combined company will remain in Hanover, Md. ADVISORS RBC Capital Markets is serving as financial advisor to KeyW, and Morrison & Foerster LLP is serving as legal advisors. Guggenheim Securities is also serving as a financial advisor to KeyW and Holland & Knight LLP is serving as securities counsel to KeyW. Macquarie Capital and Sagent Advisors are serving as financial advisors to Ares Management and Sotera, with Proskauer Rose LLP serving as legal counsel to Sotera. CONFERENCE CALL AND WEBCAST KeyW senior management will discuss this announcement and related matters at 5:00 p.m. (ET) today during our previously scheduled earnings call and webcast for the fourth fiscal quarter and fiscal year ended December 31, 2016, followed by a question-and-answer session to further discuss the results. Interested parties will be able to connect to our webcast and the presentation accompanying the conference call via the Investor Relations page on our website on March 8, 2017. We encourage people to register for an email alert about the Webcast through the Events and Presentations tab, also found on the Investor Relations page of our website. Interested parties may also listen to the conference call by calling 1-877-853-5645. The International Dial-In access number will be 1-408-940-3868. The conference ID for the event is 56194282. An archive of the webcast will be available on our webpage following the call. In addition, a podcast of our conference call will be available for download from our Investor Relations page of our website at approximately the same time as the webcast replay. ABOUT SOTERA
Sotera is an agile, mid-sized national security technology company that delivers innovative systems, solutions and services in support of the critical missions and programs of Civilian Agencies, Department of Defense, Intelligence Community, Department of Homeland Security, federal law enforcement agencies and other parts of the federal government charged with ensuring the safety and security of our nation. Our over 1,100 employees remain focused on delivering essential enterprise IT, cyber security systems and operations, data fusion and analytics, intelligence analysis, and C5ISR solutions to our customers throughout the Federal Government. ABOUT KeyW
KeyW is a total solutions provider for the Intelligence, Cyber and Counterterrorism communities' toughest challenges. We support the collection, processing, analysis and dissemination of information across the full spectrum of their missions. We employ and challenge more than 1,000 of the most talented professionals in the industry with solving such complex problems as preventing cyber threats, transforming data into intelligence and combating global terrorism. FORWARD-LOOKING STATEMENTS This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements regarding KeyW’s future prospects, projected financial results, estimated integration costs and acquisition related amortization expenses, business plans and the benefits of the business combination transaction involving KeyW and Sotera, including future financial and operating results such as fiscal year 2017 expected or projected revenue, adjusted EBITDA and debt to adjusted EBITDA ratio, the combined company’s plans, objectives, expectations and intentions and other statements that are not historical facts. Words such as “may,” “will,” “should,” “likely,” “anticipates,” “expects,” “intends,” “plans,” “projects,” “believes,” “estimates” and similar expressions are also used to identify these forward-looking statements. These statements are based on the current beliefs and expectations of KeyW’s management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements. Forward-looking statements are made only as of the date hereof, and KeyW does not undertake any obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. In addition, historical information should not be considered as an indicator of future performance. In addition to factors previously disclosed in KeyW’s reports filed with the Securities and Exchange Commission (“SEC”), the following factors could cause actual results to differ materially from forward-looking statements: (i) the Sotera transaction not being timely completed, if completed at all, including the ability to obtain regulatory approvals and meet other closing conditions to the transaction in a timely manner, if at all; (ii) risks associated with obtaining the financing for the transaction on the expected terms and schedule, or at all; (iii) KeyW’s or Sotera’s respective businesses experiencing disruptions due to transaction-related uncertainty or other factors making it more difficult to maintain relationships with employees, business partners or governmental entities; (iv) the parties being unable to successfully implement integration strategies or realize the anticipated benefits of the acquisition, including the possibility that the expected synergies and cost reductions from the proposed acquisition will not be realized or will not be realized within the expected time period; (v) the increased leverage and interest expense of the combined company; (vi) general economic conditions and/or conditions affecting the parties’ current and prospective customers and/or (vii) difficulties with, or delays in, the inability to achieve the parties’ and combined company’s revenue and adjusted EBITDA guidance for 2017, due to, among other things, unanticipated circumstances, trends or events affecting the combined company's financial performance. Factors other than those referred to above could also cause KeyW’s or Sotera’s results to differ materially from expected results.  Non-GAAP Financial Measures This press release contains forward looking estimates of adjusted EBITDA, including adjusted EBITDA margin. Adjusted EBITDA, as defined by KeyW, is a financial measure that is not calculated in accordance with accounting principles generally accepted in the United States of America, or U.S. GAAP. Adjusted EBITDA should not be considered as an alternative to net income, operating income or any other measure of financial performance calculated and presented in accordance with U.S. GAAP. Our adjusted EBITDA may not be comparable to similarly titled measures of other companies because other companies may not calculate adjusted EBITDA or similarly titled measures in the same manner as we do. We prepare adjusted EBITDA to eliminate the impact of items that we do not consider indicative of our core operating performance. We encourage you to evaluate these adjustments and the reasons we consider them appropriate. We believe adjusted EBITDA is useful to investors in evaluating our operating performance for the following reasons: we have various non-recurring transactions or non-operating transactions and expenses that directly impact our net income. Adjusted EBITDA is intended to approximate the net cash provided by operations by adjusting for non-recurring or non-operating items; and securities analysts use adjusted EBITDA as a supplemental measure to evaluate the overall operating performance of companies. Our board of directors and management use adjusted EBITDA: as a measure of operating performance;
to determine a significant portion of management's incentive compensation;
for planning purposes, including the preparation of our annual operating budget; and
to evaluate the effectiveness of our business strategies.
Although adjusted EBITDA is frequently used by investors and securities analysts in their evaluations of companies, adjusted EBITDA has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of our results of operations as reported under GAAP. Some of these limitations are:  adjusted EBITDA does not reflect our cash expenditures or future requirements for capital expenditures or other contractual commitments;

adjusted EBITDA does not reflect changes in, or cash requirements for, our working capital needs;

adjusted EBITDA does not reflect interest expense or interest income;

adjusted EBITDA does not reflect cash requirements for income taxes;

adjusted EBITDA does not include non-cash expenses related to stock compensation;

although depreciation and amortization are non-cash charges, the assets being depreciated or amortized will often have to be replaced in the future, and adjusted EBITDA does not reflect any cash requirements for these replacements; and

other companies in our industry may calculate adjusted EBITDA or similarly titled measures differently than we do, limiting its usefulness as a comparative measure.
As used in this press release, with respect to estimated adjusted EBITDA for Sotera and the combined company, respectively, KeyW defines adjusted EBITDA as GAAP net income before interest, income taxes, depreciation and amortization, excluding stock-based compensation, transaction and integration costs and other adjustments, as applicable, associated with the proposed transaction. Reconciliations of estimated adjusted EBITDA to GAAP net income is not provided because GAAP net income generated by the Sotera operations for the applicable future period is not accessible or estimable at this time. In this regard, KeyW has not yet completed the necessary valuation of the various assets to be acquired in the proposed acquisition, for accounting purposes, or an allocation of the purchase price among the various types of assets. In addition, the final interest and debt expense associated with the transactions contemplated by the commitment letter have not been finalized and are therefore unavailable. Accordingly, the amount of depreciation and amortization, interest and debt expense and other factors that will be included in the additional GAAP net income assuming the proposed transaction is consummated is not accessible or estimable at this time, and is therefore not available without unreasonable effort. The amount of such additional resulting depreciation and amortization, applicable interest and debt expense, and other factors could be significant, such that actual GAAP net income would vary substantially from the estimated adjusted EBITDA included in this presentation.
Contacts:
Heather Williams
Corporate Media Relations
443.733.1613
[email protected]

Chris Donaghey
Investor Relations
443.733.1600

Read more...
Baron Funds Comments on The KEYW Holding Corp Guru stock highlight
The KEYW Holding Corporation (NASDAQ:KEYW) is a government services company that specializes in cybersecurity and intelligence gathering applications. Shares have increased dramatically since fourth quarter earnings. At that time, the incoming CEO announced his strategic initiatives to drive growth in the core services business, and to stem operating losses and/or sell KEYW’s money losing commercial cybersecurity software business. In the second quarter, management executed against this strategy by completing the divestiture of the commercial software business, and by significantly increasing its backlog of government services business. This has started to unlock what he have always believed is the hidden value in the company. The market has finally recognized this as well, and the stock now trades at a more reasonable sector valuation. Read more...

Ratios

vs
industry
vs
history
PB Ratio 1.44
KEYW's PB Ratio is ranked higher than
74% of the 1789 Companies
in the Global Software - Application industry.

( Industry Median: 2.97 vs. KEYW: 1.44 )
Ranked among companies with meaningful PB Ratio only.
KEYW' s PB Ratio Range Over the Past 10 Years
Min: 0.66  Med: 1.52 Max: 2.7
Current: 1.44
0.66
2.7
PS Ratio 1.37
KEYW's PS Ratio is ranked higher than
67% of the 1780 Companies
in the Global Software - Application industry.

( Industry Median: 2.34 vs. KEYW: 1.37 )
Ranked among companies with meaningful PS Ratio only.
KEYW' s PS Ratio Range Over the Past 10 Years
Min: 0.55  Med: 1.45 Max: 3.06
Current: 1.37
0.55
3.06
Price-to-Operating-Cash-Flow 19.99
KEYW's Price-to-Operating-Cash-Flow is ranked higher than
54% of the 856 Companies
in the Global Software - Application industry.

( Industry Median: 17.68 vs. KEYW: 19.99 )
Ranked among companies with meaningful Price-to-Operating-Cash-Flow only.
KEYW' s Price-to-Operating-Cash-Flow Range Over the Past 10 Years
Min: 12.92  Med: 23.87 Max: 108.91
Current: 19.99
12.92
108.91
EV-to-EBIT 62.20
KEYW's EV-to-EBIT is ranked lower than
79% of the 1770 Companies
in the Global Software - Application industry.

( Industry Median: 17.68 vs. KEYW: 62.20 )
Ranked among companies with meaningful EV-to-EBIT only.
KEYW' s EV-to-EBIT Range Over the Past 10 Years
Min: -1120.2  Med: 15.15 Max: 194.5
Current: 62.2
-1120.2
194.5
EV-to-EBITDA 23.21
KEYW's EV-to-EBITDA is ranked lower than
68% of the 1910 Companies
in the Global Software - Application industry.

( Industry Median: 13.76 vs. KEYW: 23.21 )
Ranked among companies with meaningful EV-to-EBITDA only.
KEYW' s EV-to-EBITDA Range Over the Past 10 Years
Min: 3.8  Med: 14.1 Max: 56.4
Current: 23.21
3.8
56.4
Current Ratio 5.26
KEYW's Current Ratio is ranked higher than
67% of the 1750 Companies
in the Global Software - Application industry.

( Industry Median: 1.94 vs. KEYW: 5.26 )
Ranked among companies with meaningful Current Ratio only.
KEYW' s Current Ratio Range Over the Past 10 Years
Min: 0.76  Med: 1.52 Max: 7.1
Current: 5.26
0.76
7.1
Quick Ratio 4.79
KEYW's Quick Ratio is ranked higher than
63% of the 1750 Companies
in the Global Software - Application industry.

( Industry Median: 1.79 vs. KEYW: 4.79 )
Ranked among companies with meaningful Quick Ratio only.
KEYW' s Quick Ratio Range Over the Past 10 Years
Min: 0.66  Med: 1.33 Max: 5.74
Current: 4.79
0.66
5.74
Days Inventory 29.87
KEYW's Days Inventory is ranked lower than
61% of the 1086 Companies
in the Global Software - Application industry.

( Industry Median: 18.20 vs. KEYW: 29.87 )
Ranked among companies with meaningful Days Inventory only.
KEYW' s Days Inventory Range Over the Past 10 Years
Min: 16.93  Med: 23.04 Max: 56.66
Current: 29.87
16.93
56.66
Days Sales Outstanding 62.53
KEYW's Days Sales Outstanding is ranked higher than
64% of the 1492 Companies
in the Global Software - Application industry.

( Industry Median: 68.98 vs. KEYW: 62.53 )
Ranked among companies with meaningful Days Sales Outstanding only.
KEYW' s Days Sales Outstanding Range Over the Past 10 Years
Min: 49.25  Med: 74.56 Max: 102.96
Current: 62.53
49.25
102.96
Days Payable 11.63
KEYW's Days Payable is ranked lower than
84% of the 1330 Companies
in the Global Software - Application industry.

( Industry Median: 43.37 vs. KEYW: 11.63 )
Ranked among companies with meaningful Days Payable only.
KEYW' s Days Payable Range Over the Past 10 Years
Min: 5.78  Med: 15.62 Max: 30.04
Current: 11.63
5.78
30.04

Buy Back

vs
industry
vs
history
3-Year Average Share Buyback Ratio -3.50
KEYW's 3-Year Average Share Buyback Ratio is ranked lower than
57% of the 1148 Companies
in the Global Software - Application industry.

( Industry Median: -2.60 vs. KEYW: -3.50 )
Ranked among companies with meaningful 3-Year Average Share Buyback Ratio only.
KEYW' s 3-Year Average Share Buyback Ratio Range Over the Past 10 Years
Min: -44.2  Med: -13.1 Max: -3.4
Current: -3.5
-44.2
-3.4

Valuation & Return

vs
industry
vs
history
Price-to-Tangible-Book 25.39
KEYW's Price-to-Tangible-Book is ranked lower than
99.99% of the 1488 Companies
in the Global Software - Application industry.

( Industry Median: 4.38 vs. KEYW: 25.39 )
Ranked among companies with meaningful Price-to-Tangible-Book only.
KEYW' s Price-to-Tangible-Book Range Over the Past 10 Years
Min: 4.93  Med: 18.29 Max: 70.8
Current: 25.39
4.93
70.8
Price-to-Intrinsic-Value-Projected-FCF 1.51
KEYW's Price-to-Intrinsic-Value-Projected-FCF is ranked higher than
56% of the 771 Companies
in the Global Software - Application industry.

( Industry Median: 1.97 vs. KEYW: 1.51 )
Ranked among companies with meaningful Price-to-Intrinsic-Value-Projected-FCF only.
KEYW' s Price-to-Intrinsic-Value-Projected-FCF Range Over the Past 10 Years
Min: 0  Med: 1.6 Max: 2.25
Current: 1.51
0
2.25
Price-to-Median-PS-Value 0.94
KEYW's Price-to-Median-PS-Value is ranked higher than
72% of the 1498 Companies
in the Global Software - Application industry.

( Industry Median: 1.15 vs. KEYW: 0.94 )
Ranked among companies with meaningful Price-to-Median-PS-Value only.
KEYW' s Price-to-Median-PS-Value Range Over the Past 10 Years
Min: 0  Med: 1.04 Max: 1.96
Current: 0.94
0
1.96
Earnings Yield (Greenblatt) % 1.61
KEYW's Earnings Yield (Greenblatt) % is ranked lower than
54% of the 2521 Companies
in the Global Software - Application industry.

( Industry Median: 3.23 vs. KEYW: 1.61 )
Ranked among companies with meaningful Earnings Yield (Greenblatt) % only.
KEYW' s Earnings Yield (Greenblatt) % Range Over the Past 10 Years
Min: 0.5  Med: 3.65 Max: 20.5
Current: 1.61
0.5
20.5
Forward Rate of Return (Yacktman) % 1.23
KEYW's Forward Rate of Return (Yacktman) % is ranked lower than
62% of the 773 Companies
in the Global Software - Application industry.

( Industry Median: 10.33 vs. KEYW: 1.23 )
Ranked among companies with meaningful Forward Rate of Return (Yacktman) % only.
KEYW' s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: -27.2  Med: -5.1 Max: 5.6
Current: 1.23
-27.2
5.6

More Statistics

Revenue (TTM) (Mil) $282.6
EPS (TTM) $ -0.34
Beta1.02
Short Percentage of Float22.41%
52-Week Range $8.07 - 13.57
Shares Outstanding (Mil)49.51

Analyst Estimate

Dec17 Dec18
Revenue (Mil $) 471 562
EPS ($) -0.03 0.28
EPS without NRI ($) -0.03 0.28
EPS Growth Rate
(Future 3Y To 5Y Estimate)
N/A
Dividends per Share ($)
» More Articles for KEYW

Headlines

Articles On GuruFocus.com
KeyW Announces Changes to Executive Leadership Team May 10 2017 
KeyW to Report First Quarter 2017 Financial Results on Wednesday, May 3, 2017 Apr 19 2017 
KeyW Completes Acquisition of Sotera Defense Solutions Apr 04 2017 
KeyW and Sotera Defense Solutions Announce Early Termination of Hart-Scott-Rodino Waiting Period Mar 27 2017 
KeyW Launches Mobile Persistent Cyber Training Environment Mar 22 2017 
KeyW Enters into Employment Agreements with Four Employees of Sotera Defense Solutions Mar 13 2017 
KeyW Enters Into Definitive Agreement to Acquire Sotera Defense Solutions Mar 08 2017 
Baron Funds Comments on The KEYW Holding Corp Aug 10 2016 
Baron Discovery Fund 2nd Quarter Letter Aug 10 2016 
5 Penny Stocks to Watch Mar 01 2016 

More From Other Websites
Edited Transcript of KEYW earnings conference call or presentation 3-May-17 9:00pm GMT May 18 2017
KeyW Achieves ISO 9001:2015 Quality Certification May 17 2017
ETFs with exposure to The KEYW Holding Corp. : May 11, 2017 May 11 2017
KeyW Announces Changes to Executive Leadership Team May 10 2017
The KEYW Holding Corp. :KEYW-US: Earnings Analysis: Q1, 2017 By the Numbers : May 10, 2017 May 10 2017
KEYW reports 1Q loss May 03 2017
KeyW Reports First-Quarter 2017 Financial Results May 03 2017
Investor Network: KEYW Holding Corporation to Host Earnings Call May 03 2017
The KEYW Holding Corp. breached its 50 day moving average in a Bearish Manner : KEYW-US : May 1,... May 01 2017
The KEYW Holding Corp. – Value Analysis (NASDAQ:KEYW) : April 24, 2017 Apr 24 2017
The KEYW Holding Corp. breached its 50 day moving average in a Bullish Manner : KEYW-US : April 21,... Apr 21 2017
KeyW to Report First Quarter 2017 Financial Results on Wednesday, May 3, 2017 Apr 19 2017
KeyW Completes Acquisition of Sotera Defense Solutions Apr 04 2017
Post Earnings Coverage as Cheetah Mobile's Quarterly Revenue Increased 10.9% Apr 03 2017
KeyW and Sotera Defense Solutions Announce Early Termination of Hart-Scott-Rodino Waiting Period Mar 27 2017
KeyW Launches Mobile Persistent Cyber Training Environment Mar 22 2017
The KEYW Holding Corp. :KEYW-US: Earnings Analysis: Q4, 2016 By the Numbers : March 21, 2017 Mar 21 2017
KeyW Enters into Employment Agreements with Four Employees of Sotera Defense Solutions Mar 13 2017
Moving Average Crossover Alert: KEYW Holding (KEYW) Mar 13 2017
Edited Transcript of KEYW earnings conference call or presentation 8-Mar-17 10:00pm GMT Mar 09 2017

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