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Applied Digital Unit Gets New Government Pact
Friday March 28, 10:51 am ET
PALM BEACH, Fla. (Dow Jones)--Applied Digital Solutions Inc.'s Computer Equity unit received a new contract to provide telecommunications services and equipment to the government's general services administration.
The newest contract replaces a wire and cable services contract that is expiring, Applied Digital said in a press release Friday.
The Computer Equity unit generated more than $31 million in revenue in 2002 from the previous contract, which was originally awarded in 1997. Applied Digital had revenue from continuing operations of $23.9 million in the first nine months of 2002.
The new contract is an indefinite delivery, indefinite quantity agreement with a base period of three years, with five successive one-year options. Financial terms weren't disclosed.
On Thursday, Applied Digital announced Chairman and Chief Executive Richard Sullivan retired, and also said it received a forbearance agreement from International Business Machines Corp.'s (IBM) credit unit.
Shares of Applied Digital recently traded heavily on the Nasdaq market, changing hands at 54 cents, up 22 cents, or 68.7%, on composite volume of 21.2 million shares. Average daily volume is 3.1 million shares.
-Kara Wetzel; Dow Jones Newswires; 201-938-5400
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