Market Share

While the commercial information technology services sector continues to struggle with slow IT spending, the federal IT services companies continue to post strong results.

Market Watch

All signs in January and February seemed to point to a modest rebound in commercial information technology spending for the first quarter of 2002. Then came March.

Market Share

As we approach the first quarter's end, investors face mixed indicators as to whether commercial information technology spending is improving.

Budget boost doesn't quell investor fears

As expected, President Bush asked Congress for the largest increase in defense spending in 20 years: $379 billion. The increase signals a strong market, but investors are still nervous, according to analyst Bill Loomis

Market Share

As expected, President Bush asked Congress for the largest increase in defense spending in 20 years: $379 billion.

Market Share

Last year was tremendous for federal information technology companies. Federal IT stocks outperformed their commercial counterparts by several times, and valuations reached record levels.

Some Integrators End on High Note

As we close in on the end of the year, public federal integrators, such as CACI International Inc. and PEC Solutions Inc., are continuing to hit new stock price highs.

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As we close in on the end of the year, public federal integrators, such as CACI International Inc. and PEC Solutions Inc., are continuing to hit new stock price highs.

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Stocks of companies in the federal information technology market continued to show strength following the Sept. 11 terrorist attacks, with CACI International Inc., PEC Solutions Inc., Titan Corp. and Dynamics Research Corp. all having strong performance in the past two weeks.

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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.

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While there has been a significant amount of consolidation in the federal markets over the past few years, there has been relatively little consolidation among the commercial information technology services firms.

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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.

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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.

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Technology shares have had quite a rally over the past few months following large declines through the winter.

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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.

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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.

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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.

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The latest quarter of financial results in information technology services can be characterized as revenge of the big companies.