Market valuations for publicly traded government IT companies rose an average of 17 percent over the last six months, according to Input Inc., a Reston, Va.-based IT market research firm.
While Congress has not yet completed its appropriations work for fiscal 2004, one market research firm believes the upcoming year is going to be a strong one for information technology and technology-based services.
While Congress has not yet completed its appropriations work for fiscal 2004, one market research firm believes the upcoming year is going to be a strong one for information technology and technology-based services.
General Dynamics Corp. has created a C4 Systems business unit by combining two units that provide command and control systems, officials of the Falls Church, Va., company said this month. Merging General Dynamics' Decision Systems and C4 Systems units created the new business unit.
DigitalNet Holdings Inc., Herndon, Va., arrived on the stock market Oct. 13, with an initial public offering of 5 million shares that opened at $17 each and closed at $20.95, a 23.2 percent increase.
With the second-quarter earnings season over, investors seem more confident that commercial information technology spending has bottomed out and is improving. Several Wall Street firms have upgraded technology companies in recent weeks, which helped shares, including commercial IT service firms, hit new 52-week stock price highs.
Digital Net Holdings Inc. has again filed for an initial public offering of stock. No date has been set, but the company expects to raise $86.3 million, according to the company's Aug. 8 filing with the Securities and Exchange Commission.
As the reporting season for second quarter earnings comes to an end, it looks like it's been another good one for the publicly traded federal IT service companies.
With its pending $200 million universal computing connectivity solicitation, the U.S. Postal Service wants an integrator to combine telephone calls and data traffic on the same networks.Like many government telephony contracts, the message from USPS is clear: Agencies want both telephone services and data networking services from the same provider. And according to industry insiders such as <b>John O'Sullivan</b>, vice president of programs for Harris Corp., a few integrators are winning the confidence of agencies for their ability to pull together mission-critical skills and knowledge to combine service offerings.
The Federal Reserve's recent reduction of the short-term interest rate to 1 percent reflects a continuing sluggishness in the U.S. economy overall. Many investors are assessing what these very low borrowing costs mean for both the economy and their investment portfolios.
The consolidation trend is alive and well in the federal information technology industry. General Dynamics Corp.'s agreement to acquire Veridian Corp. for $35 per share in cash, or $1.5 billion including debt, certainly got the attention of industry, as well as investors.
Recently, the Small Business Administration announced its intention to institute "re-certification procedures," applicable to companies seeking to continue their work under small business contracts beyond the initial contract period.
SRA International Inc. has filed a registration statement with the Securities and Exchange Commission for a second public offering of its common stock.
Overall first quarter results were strong for most publicly traded federal IT companies, as they met or beat investor expectations and maintained or raised their earnings guidance.
PEC Solutions Inc. has been hit with several class-action lawsuits filed on behalf of shareholders after the company's stock plunged 38 percent in a single trading day in March.
The last few years have been difficult for private equity investors. Many of their investments in the 1990s are underperforming the original expectations upon which funds were committed. This is particularly true for investments in commercial information technology, consulting, telecom and wireless.
