Computer Technology Associates, Inc. Announces Creation of Government Business Company.Business Editors/Hi-Tech Writers BETHESDA, Md.--(BUSINESS WIRE)--April 26, 2000 CTA An abbreviation for cum testamento annexo, Latin for "with the will annexed." Government Systems, Inc. to Focus on Public Sector Business Computer Technology Associates, Inc. (CTA) announced today its intention to spin off part of its business into a new company, CTA Government Systems, Inc., allowing it to sharpen its focus in the public sector marketplace. The new company will assume responsibility for CTA's existing, traditional public sector business of providing high-end systems engineering and information technology services to federal and state clients, and will achieve revenues of approximately $20M this year. Concurrently, CTA will pursue rapid growth in the Internet related business in both commercial and government markets. CTA Government Systems will initially operate as a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of CTA. Plans are in effect to complete a tax-free spin-off at the earliest possible time, meeting legal and government requirements. "The basic reason for the spin-off is to sharpen the focus of both businesses," said Tom Velez, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. and co-founder of CTA. "The nature of the eGovernment and eBusiness markets demands business models that diverge diverge - If a series of approximations to some value get progressively further from it then the series is said to diverge. The reduction of some term under some evaluation strategy diverges if it does not reach a normal form after a finite number of reductions. from those associated with the demands of the more stable, rigorous, multidisciplinary needs of agencies such as the Department of Defense and the Federal Aviation Administration Federal Aviation Administration (FAA), component of the U.S. Department of Transportation that sets standards for the air-worthiness of all civilian aircraft, inspects and licenses them, and regulates civilian and military air traffic through its air traffic control . The spin-off gives each company the ability to partner more appropriately, and develop cost structures consistent with client needs and market demands without the burdens of being part of a larger business that is not focused in their areas." The CEO of this new organization will be Ray McMillan, a member of CTA's Board and former manager of CTA's Information Technology Systems business. Ray has had a distinguished career both in the government, having retired as a Brigadier General of the Air Force General of the Air Force n. 1. The highest commissioned rank in the U.S. Air Force. 2. One who holds this rank. after 37 years of public service, and in the private sector, having achieved the position of Executive Vice President of CTA as a result of his former leadership of CTA's IT business. Ray will be joined by Kevin Karton as his Chief Financial Officer, as well as a team of CTA senior managers with extensive experience in Government business. All of CTA's current federal and state business, with the exception of its work with GSA's Advantage! and related Federal Supply Service systems, and its eGovernment work for the states of Kansas and California, will be assigned to and managed by CTA Government Systems. About Computer Technology Associates, Inc CTA is a nationwide provider of eBusiness and eGovernment solutions and information technology systems and services. CTA has 20 years of experience with commercial clients and selected agencies of the federal and state governments, and core competencies A core competency is something that a firm can do well and that meets the following three conditions specified by Hamel and Prahalad (1990):
service industry - an industry that provides services rather than tangible objects , security planning, custom manufacturing and embedded systems Embedded systems Computer systems that cannot be programmed by the user because they are preprogrammed for a specific task and are buried within the equipment they serve. engineering. For more information visit http://www.cta.com. |
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