IT Market Shakes Up Two Firms

WASHINGTON (05/23/2000) - The volatile information technology marketplace has caused two Fortune 500 companies with a history in the federal market to announce changes in their business practices last week.

Inacom Corp. announced May 18 that the company had been experiencing a cash flow shortage and was looking at alternative financing sources, including selling the company. In April, Inacom sold its Government Systems Division to Micron Electronics Inc. for an undisclosed amount. Two months prior to the Micron purchase, Inacom sold its PC distribution services to Compaq Computer Corp. for $370 million.

Intergraph Corp. also announced May 18 that it has shifted the company's core objectives to focus on systems integration and services rather than hardware distribution.

"This is a pretty significant change for us," said James Taylor, Intergraph's chief executive officer. "We are not trying to define a new company. We are taking the best assets of the company and maximizing them."

Intergraph will continue to offer public safety, mapping and geographic information system services, but will add World Wide Web hosting, networking and e-commerce to its list of available services.

"We will provide everything [an agency] needs," Taylor said. "We will provide all end-to-end services."

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