(from www.sec.gov)
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Government Technology Services Inc. |
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From the April 28, 1997 Washington Post
| '96 (in $ 000s) | % Change From '95 | |
| Revenue | 491,642 | (6.7) |
| Net Income | (17,838) | -- |
Description:
Government Technology Services is the largest provider of off-the-shelf computer products to the federal government. The company sells to almost all government departments and agencies and offers purchasers access to more than 75,000 products from 800 manufacturers. GTSI also performs some computer systems services, such as installing and configuring computers and setting up local area networks.
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The financial turnaround that GTSI hoped for in 1996 largely did not come to pass, but the company predicts that its sales and operating margins will improve this year.
Changes in federal procurement rules, which have made it easier for government purchasers to buy computers directly from manufacturers and from GTSI's competitors, have hurt revenue and led to losses. To survive in this new marketplace, the company spent the year trying to remake itself into a more customer-friendly operation. It revamped its internal order-processing systems and promised customers $50 if their phone calls aren't picked up in 12 seconds. However, analysts say such efforts have yet to pay off for the company.
Chief Executive M. Dendy Young, who joined the company in late 1995, has said turning GTSI will take well into this year. Earlier this year the company's chief financial officer, Peter E. Janke, whom Young had brought on board, said he was leaving "to pursue other interests."
In December the company and Sysorex Inc. of Fairfax jointly won a contract valued at $236.7 million to provide portable computers to the Army. The companies' shares of the contract were not disclosed.
