CSC, GTSI see revenues climb
- By Paula Shaki Trimble
- Feb 06, 2001
In a break with recent reports by technology firms that are struggling to remain profitable, two leading government information technology contractors announced improved financial results in earnings reports released Monday.
Computer Sciences Corp. announced that its revenues for the third quarter of fiscal 2001, which ended Dec. 29, were $2.7 billion, a 12.9 percent increase over fiscal 2000. CSC's federal business also increased to $647.5 million in fiscal 2001 from $543.8 million in the third quarter of fiscal 2000.
Van Honeycutt, CSC chairman, president and chief executive officer, attributed the company's improved financial performance to its breadth of services and the strong revenue growth in its federal sector.
CSC's civil agencies business rose 22.2 percent to $248.1 million from $203.1 million in 2000. The company attributes the rise to its work on the Internal Revenue Service modernization effort and General Services Administration contracts. Awards such as the Army Logistics Modernization also boosted CSC's Defense Department revenue stream to $399.4 million from $340.7 million in 2000.
GTSI Corp. reported that its 2000 year-end results increased significantly over 1999 results. Net income for the full year was $10.6 million, compared with net income in 1999 of $2.7 million. Revenues for 2000 were $677.8 million, a 2.6 percent increase over the 1999 revenues of $660.6 million.
In 2000, GTSI reorganized its sales force to meet customers' needs and made a concerted effort to substantially increase solutions sales, GTSI chairman and CEO Dendy Young said in a statement. The company won about $2 billion in federal contracts in 2000, primarily from DOD.
GTSI, an IT reseller, has also expanded its relationships with vendors such as Hewlett-Packard Co., Panasonic, Microsoft Corp. and Sun Microsystems Inc.