UNCLE SAM'S PC SHOPPING BINGE
THE HIGH-TECH INDUSTRY IS busy counting its dough after the latest--and most lucrative--yearend government buying spree. That's as in federal fiscal year, which ended on Sept. 30. Savvy tech types monitor government bulletins, since agencies usually spend the biggest chunk of their procurement budgets in the fourth quarter. Bureaucrats husband their dollars all year for unexpected needs, then shove the cash out the door around Labor Day.
Since federal computer spending is especially booming in PC hardware and software (up from $981 million in fiscal 1995 to an estimated $1.2 billion in fiscal '96), more outfits are partaking of the bonanza. Two of the biggest winners on one of the feds' PC-buying schedules: Gateway 2000 and Dell. Gateway's fourth-quarter government sales were an estimated 41% of its $155 million yearly total, says FCW Government Technology Group. Dell's fourth-quarter take: an estimated 40% of its $89 million total. Even startup Nexar Computers, which began shipping its first PCs in April, got a crumb. Allied with reseller Government Technology Services, it sold 4,000 units.
EDITED BY LARRY LIGHT
Updated June 14, 1997 by bwwebmaster
Copyright 1996, Bloomberg L.P.