First-quarter results are now expected to be even softer than previously thought, and the year will be even more back-end loaded than we had forecasted, so the results are disappointing. |
The strongest performance in the first quarter came from government systems. |
This is significantly less for equipment than earlier reports had suggested, which may reflect Congressional concern that the supplemental was being inappropriately used to by-pass the standard procedures required for acquiring hardware. |
We expect to see the commercial systems division posting improved results going forward, whilst the Government Systems divisions continues to defy skeptics. |
We think a down-cycle is likely to kick in at some point toward the end of the decade. |