European aerospace and defense giant EADS N.V. withdrew from a major U.S. defense acquisition in late December because its board wanted to preserve cash.
BearingPoint Inc. will face a day of reckoning on April 15 when lenders who gave the company $200 million nearly three years ago can collect on the debt.
Despite facing tighter budgets, tougher competition, and heavier oversight and regulation burdens, the federal IT and professional services industry is a relatively bright spot on Wall Street.
Qwest sees the Networx telecommunications contract as one of a number of catalysts for revenue growth that will help the company improve its financial situation over the long run.
HP has issued a comparatively optimistic forecast for sales in the coming year, which contrasts with the gloomy forecasts from other major technology companies.
Michael Manusco, who is coming out of retirement to serve as chief financial officer at CSC, says his primary concern from a corporate standpoint will be maintaining access to credit.
The government contracting industry, like the rest of U.S economy, is trying to ascertain what political change and the financial turmoil will mean for it. Specifically, how are the capital markets and the mergers and acquisitions environment for this industry affected?
BearingPoint's plans to sell some or all of its business have proved unsuccessful, and the company is now attempting to renegotiate the terms of some of its debt.
Recent turmoil in debt and equity markets highlights the contrast between federally oriented businesses and companies serving private-sector customers. It reminds us of the attractive, fundamental characteristics of the government services industry: stability, visibility, predictable cash flows and modest capital requirements.
