Like many in the country that Tuesday morning, I arrived at work and watched in horror and disbelief as the terrorist attacks unfolded Sept. 11. Their effect on people and business around the world has been substantial, and it is not yet over.
While the overall stock market plummeted Sept. 17 when trading reopened following the attacks in New York and Washington, several defense and IT companies saw their share price rise between 9 percent and 26 percent.
The globalization of commerce, technology and finance has begun to affect the aerospace, defense and public-sector markets. The relaxation of many of the impediments to more open government markets is gaining momentum in the United States, as well as in the United Kingdom and European markets. This trend is likely to continue and, more probably, to expand in the years ahead,
Have we seen the worst of the commercial IT spending slowdown? Based on second quarter reports and the outlook for information technology services companies for the second half of the year, the answer is yes and no.
Once again in-vestors are focusing on earnings, with most companies reporting second quarter results over the next couple of weeks. I don't expect many surprises this quarter.
Merger and acquisition activity in the defense and government services markets remains robust, even as many domestic buyers have slowed their pace of buying because of stock price declines or tightening of debt and mezzanine markets.
Over the past few years, many industry executives and shareholders, as well as government officials, have expressed concern about the increasing risk faced by smaller government information technology companies in the evolving federal procurement environment.
Wall Street finally begins to love federal information technology just when the market is expected to slow. In a recent report, Federal Sources Inc. projected federal IT spending of just 0.9 percent in fiscal 2002, below 7.7 percent growth for fiscal 2001.
Once again, investors will focus on earnings over the next few weeks. With so many information technology service companies ? and technology companies in general ? having pre-announced poor first quarter results, the focus will really be on the outlook for the second quarter and second of the year.
Most investors are hiding in underground bunkers by now and have ceased their declarations that each successive market low is a definite buying opportunity. This is particularly true for technology investors with a predominance of focus on the Nasdaq.
Since my last article in Washington Technology, the bad news has continued concerning information technology spending, with the two leading e-business services companies, Sapient Corp. and DiamondCluster, pre-announcing poor results for the second time this year.
Bull Americas has used a market analysis and strategic planning study to help spark a four-year growth spurt in the public-sector market and establish itself as a respected data integrator.
The stock of GTSI Corp. of Chantilly, Va., received an upward bounce when the company announced that 2000 profits had jumped nearly 300 percent from 1999.
On its first day out of the gate, KPMG Consulting Inc. saw its share price rise 30 percent to close at $23.48 on heavy trading of its initial public offering of stock.
Voter.com, the content-heavy political and election news Web site that recently signed several high-profile and talented writers, conceded Feb. 5 it was time to close up shop for good.
GTSI Corp.'s stock has been soaring since the government reseller reported a nearly 300 percent increase in profits for 2000. The company also announced a stock buyback program.
