T O M Y F ELLOW S HAREHOLDERS Over the Last Seven Years, CACI Has Sustained a 95 Percent Recompete Average  Win Rate. By all measures, fiscal year 2003 was an extremely successful one for CACI.  We had record profits of $45 million, 40 percent higher than last year’s $32 million of income from continuing operations. Diluted earnings per share were $1.52,  23 percent higher than last year’s $1.24 diluted earnings per share from continuing operations. Operating income was $70 million, another record and 33 percent higher than last year’s $53 million. Revenue increased to a record $843 million, 24 percent higher than the $682 million reported a year ago. Operating cash flow was $76 million, another record and almost double last year’s operating cash flow of $41 million. Our balance sheet at year end was strong, with $89 million in cash and marketable securities and no long-term debt. Our backlog at fiscal year end was another record: $2.5 billion, up from $1.9 billion a year earlier.  we expect to be a more profitable company as we move to the next level, with profits and margins significantly higher than when we first began executing our growth strategy in fiscal year 2000. In early July, we issued guidance to the financial community for FY04 and beyond. As that guidance reflects, we believe that over the next three-year period we will be able to grow our net income at an average of 20+ percent annually and our revenue at approximately the same rate, while targeting net profit margins at or above our current level of 5.3 percent. We will work to achieve this growth by leveraging our ongoing customer relationships, winning larger contract awards from the federal government, and making strategic acquisitions that complement CACI’s existing capabilities and customer base. This performance was achieved as a result of our strong customer relationships throughout the federal government, another year of winning all of our major contracts that were being recompeted, and our successful acquisition program that produced four accretive transactions that added to our portfolio of clients and expanded our capabilities. We have sustained our position as a leading provider of information technology services to the federal government. This strong growth in our domestic operations was somewhat offset by our United Kingdom operations, which are being affected by the lower demand for commercial IT services in that country. CACI’s fundamentals—strong at the end of last fiscal year—are stronger this year and continue to provide us with a solid foundation for the future growth of our company. Our strategic approach will remain the same. We will continue to focus on national defense, intelligence, homeland security, the transformation of govern- ment, and successfully delivering mission- critical support to current and new clients. Information Technology (IT) continues to power the ongoing transformation of the federal government and our military. The demand for IT and technology-related services and solutions by our customers is being driven by the government’s response to ongoing global threats to national security that are non-traditional in nature and diverse in their origins, and the changes to the operation and culture of the U.S. government to meet those challenges. This, in turn, has affected how our government will operate in a number of ways, creating growth opportunities for CACI from escalating priorities, including: For the past several years, we have talked about our goal of becoming a company with $1 billion in annual revenue by the end of fiscal year 2005. I am extremely pleased to tell you that we now expect to surpass that $1 billion goal before the end of fiscal year 2004 (FY04)—one year ahead of our original objective. In addition, ANNUAL REPORT 2003 2 Positioned to Hit the Billion-Dollar Mark Ahead of Plan Our Strategic Focus, America’s Future ¥ Placing greater emphasis on informa- tion sharing through technology and  consolidation of systems and  organizations with overlapping and  complementary missions ¥ Enhancing and improving interaction  among intelligence and law enforce-  ment agencies