Here's the GTSI scoop : GTSI Up -2: IBM To Get $617M Of $857M Contract >GTSI
By Donna Fuscaldo
Of DOW JONES NEWSWIRES
NEW YORK (Dow Jones)--Shares of GTSI Corp. (GTSI) climbed 74% Wednesday on
news that the company was one of two winners of a military contract with the
potential to reach $857 million.
In a press release issued after Tuesday's market close, the Army said GTSI
and International Business Machines Corp. (IBM) won a joint contract to
provide computer hardware and information technology services.
A company spokeswoman said the guaranteed minimum of the contract is
$75,000, and no money actually exchanged hands. She said the $857 million
figure is the Army's estimate, not GTSI's.
IBM and GTSI will each get a share of the two-year contract, which has a
three-year renewal option, the spokeswoman said.
IBM spokeswoman Nancy Kaplan said the Army awarded her company up to $617
million of the $857 million contract. IBM will provide the Army with servers
and personal computers as well as support. The spokeswoman said the
remainder of the contract would go to GTSI.
Officials at the Army were not immediately available for comment.
In after-hours trading Tuesday, shares of GTSI tripled, hitting $9.13 at one
point. Late Wednesday morning, it was at $5.94, up $2.56, or 76.9%, on
volume of 5 million shares, compared with average daily volume of 33,700.
-Donna Fuscaldo; Dow Jones Newswires; 201-938-5253
(END) DOW JONES NEWS 08-30-00
11:14 AM
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