INDUSTRY WATCH

BTG GTSI report losses

BTG Inc. and Government Technology Services Inc. last week reported losses for their March-ended quarters.

BTG said it expects a fourth-quarter loss of about $480 000 on revenue of about $90 million. For the fiscal year however the company expects to turn a profit of $4.2 million on revenue of about $400 million. BTG attributed its projected fourth-quarter loss to the cost of gearing up for recent contract awards and the postponement of a large software order from a government customer among other factors. A BTG spokeswoman declined to identify the customer or the software involved. She said the software order did not come through because the customer could not assemble the necessary funding.

GTSI meanwhile recorded a first-quarter net loss of $2.4 million on sales of $88.4 million. The company said the loss stems from greater operating expenses particularly in personnel. A company spokeswoman said GTSI has been "hiring people in all departments" and has a greater head count this year than last year. GTSI has more than 400 employees the company had about 360 employees in mid-1996.

GTE to acquire BBN Corp.

GTE Corp. announced last week plans to purchase BBN Corp. in a transaction valued at approximately $616 million.Cambridge Mass.-based BBN's history is rooted in federal government contractor business and its client base includes the Defense Advanced Research Projects Agency and the Defense Department. In 1996 BBN Planet a subsidiary announced the industry's first globally available business-grade Internet service.

According to a recent research report from Zona Research Inc. GTE may use the addition of BBN to bolster its entry into the value-added data communication services market. For example GTE's CyberTrust Division has been competing with VeriSign Inc. in the security market with its digital signature technology.

BBN has positioned its Safekeeper certificate management system as a product that can help specific markets to easily develop and implement solid and secure intranets with digital identification capabilities.According to the report the BBN/GTE combination will offer an alternative to VeriSign and also may bolster the market acceptance of digital IDs with the availability of two companies offering these products.

Buchsbaum lands with Dell

Tom Buchsbaum has joined Dell Computer Corp. as vice president of education. Buchsbaum a PC marketing veteran was previously executive vice president of Zenith Data Systems Corp. In January Buchsbaum's position at ZDS was eliminated in a restructuring.

At Dell Buchsbaum is responsible for K-12 and higher education within Dell's Education State and Local Group.v- Compiled by John Moore and Heather Harreld.

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