OAO Technology Solutions Inc. of Greenbelt appointed a new chief executive officer yesterday and announced other developments as it continues to define itself in the wake of going public in January.
The information technology company named Gregory A. Pratt to replace William R. Hill as chief executive. Pratt joins the company from Enterprise Technology Group, which OAO Technology Solutions has announced that it is purchasing.
Hill, who oversaw the creation of the company, will continue to be a director. Hill said he stepped aside because it was "time for new leadership with a more diversified information technology background."
Spun off from the privately held government contractor OAO Inc., OAO Technology Solutions provides computer out-sourcing services for private companies that don't want to invest in creating their own computer maintenance staff.
OAO Technology Solutions grew to $84.7 million in sales last year, its sixth year. The company said yesterday, however, that it expects a loss of about 16 cents per fully diluted share for the second quarter of this year, which will end Tuesday.
Most of that loss results from establishing a reserve fund to cover uncollectible accounts receivable, the company said. Lack of growth in the core out-sourcing business and lower-than-expected earnings by a new health services subsidiary will also contribute to the loss, the company said.
Still, OAO Technology Solutions continues to forge ahead with acquisitions. In addition to buying Enterprise Technology Group, the company said yesterday, it has signed a letter of intent to acquire OAO Services Inc., which helps companies supplement their information technology staffing.
Based on last year's figures, that addition will boost the company's annual revenue to $140 million, the company said. OAO Technology is paying cash for the acquisition but did not disclose the purchase price. It said the amount is contingent on future earnings.
The Enterprise Technology Group purchase is a stock transaction. The companies did not release terms of that deal.
Together, OAO Technology said, the acquisitions will help it expand four lines of information technology-related businesses: software engineering, health care solutions, technical staffing and enterprise resource planning.
Shares in OAO Technology lost 87.5 cents yesterday to close at $4.625 on the Nasdaq stock market.
Pub Date: 6/27/98