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August 4, 2021

Byron Callan quoted in DefenseNews

"Lockheed’s CFO abruptly exits, sparking search for replacement" by Joe Gould

Byron Callan quoted in Joe Gould's DefenseNews article, "Lockheed’s CFO abruptly exits, sparking search for replacement"

The article reads:

While the underlying reasons were unclear, observers noted the move follows Lockheed’s disclosure of a $225 million loss on a classified developmental aeronautics program on its July 26 quarterly earnings call.

Capital Alpha Partners analyst Byron Callan said in a note to investors Wednesday that the amount was “not large,” and speculated that if the loss was the cause of Possenriede’s departure, it could have been how the situation was treated and questioned whether there had been earlier warnings that were missed.

The company said last month that the monetary loss, which stemmed from performance issues, surfaced after Lockheed performed a “deep dive” on the program in May and was reported to its board in June.

Full article:

April 1, 2015

Byron Callan quoted in DefenseNews

"Analysts: Stable Outlook for Defense Sector" - April 1, 2015

"Byron Callan, managing director of Capital Alpha Partners, also pointed to growing geopolitical instability in his April scorecard for the defense industry.

It is too soon to forecast the effects of the Saudi-led intervention in Yemen, but its success or failure could have implications for the industry, particularly high-end weapon buys, Callan noted. The possibility of a Russian offensive in Ukraine and counter-ISIS activities may also help create a more positive outlook for major contractors.

"US defense investment spending is on the verge of a multi-year upturn," the scorecard states. As the DoD is able to better plan ahead, major weapon modernization programs will see increases.

Callan also projects operating margins to be stable or to increase, depending on the company."

May 26, 2014

Defense Analyst Byron Callan quoted in DefenseNews

"Tech Giants Spend Billions More Than Defense Firms on R&D," by Marcus Weisgerber

Capital Alpha's Defense Analyst Byron Callan's research and analysis were featured in DefenseNews' May 26, 2014 article. The article, written by Marcus Weisgerber, is entitled ""Tech Giants Spend Billions More Than Defense Firms on R&D." 

The following is excerpted from that article, which may be found here:

In all, the three big tech companies spent $18.8 billion more than the defense companies on these R&D projects in 2013, according to data compiled by Byron Callan, an analyst with Capital Alpha Partners. Over the same time frame the five defense companies spent a total of $4.1 billion on R&D projects, while Google spent $8 billion, Apple $4.5 billion and Microsoft $10.4 billion.

“Those numbers kind of just stagger me that some of the tech giants are spending more than the five major primes combined,” Callan said.

“I just find it very intriguing that there’s such a misalignment between what these big guys are spending in absolute terms and what the US sector is spending,” he said.

One reason for the disparity in R&D investment could be that the Defense Department has relatively few cutting-edge, major programs starting in the coming years, Callan said.

In some cases, the Pentagon has opted to slow or cancel new programs, due to shrinking defense spending. Congress has also signaled it will not allow DoD to cancel certain programs, thus preventing the Pentagon from freeing up funds that could have been invested in R&D projects, Callan said.

“If you keep money in these older, legacy programs or you haven’t freed up money for some of these newer things that would see a promise of a payoff if someone takes some risk, then this a dog chasing its tail,” Callan said.