GTSI Points Finger at Y2K for Lossesgreenspun.com : LUSENET : Grassroots Information Coordination Center (GICC) : One Thread
Daily News GTSI Points Finger at Y2K for Losses By Nick Wakeman, Washington Technology May 08, 2000
Government Technology Services Inc. [NASDAQ:GTSI] (GTSI) of Chantilly, Va., blamed year 2000 concerns for lower government spending that resulted in the company getting off to a slow start in the first quarter of 2000.
The company posted a net loss of $1.6 million on revenue of $129.3 million for the first quarter, compared with last year's first quarter net loss of 1.9 million on $125.5 million in revenue.
GTSI Chairman and Chief Executive Dendy Young said the first and second quarters traditionally are slower periods because of the seasonal buying pattern of the federal government, GTSI's primary customer. This year, however, there was the added burden from concerns surrounding Y2K, he noted.
"In January, our revenue was much lower than expected due to our government customers delaying purchases until they saw if the Y2K issue would have any impact," he said. "This pattern, in part, continued through February, as Feb. 29 was the next significant Y2K date."
Like other government resellers, GTSI has struggled in recent years in the face of tough competition from direct sellers of computer products and increasing pressure on profit margins. The company recently launched a new Web site to push more customers to online buying as one way to reduce operating expenses.
Reported by Washington Technology,
-- Martin Thompson (firstname.lastname@example.org), May 08, 2000