Lockheed Martin IS&GS 4Q10 Performance - Sponsored Whitepaper

The sanctity of the government IT market, which had once been an exclusive hunting preserve for defense industry players, has been increasingly penetrated by an influx of commercial-legacy players with established and proven solutions. As government agencies in both the defense and civil sides of government seek the impact of their IT budget dollars, TBR believes the IT service delivery groups of the traditional federal defense and IT services contractors continue to seek greater efficiency and cost-reduction to regain competitive footing. TBR believes IS&GS’ planned divestiture of its Pacific Architects & Engineers unit and the OCI driven sale of its EIG division (finalized in 4Q10) will have a positive impact on Lockheed Martin’s Information Systems and Global Solutions Group, making it a more IT service-focused organization that can devote resources to development and deliver IT solutions to government customers. However, the ramp down of the U.S. Census work in 4Q10 leaves a gap in the revenue stream for IS&GS in 2011.