Companies Clamber for Homeland Security Cash

Mixed Response

In fact, since the homeland security bill was signed on Nov. 25, shares have put in a mixed performance. L-3 Communications is ahead 4.1% to $46.25, OSI Systems is up 2.3% to $16.83, Applied Signal Technology is up 5.6% to $11.20 and Northrop Grumman is up 0.9% to $98. Among the decliners, Identix is down 29% to $4.64, Oracle is down 4.5% to $11.06, Microsoft is off 7.2% to $54, Motorola is behind 15% to $8.93 and American Science & Engineering is down 3.1% to $12.45.

Overall, it is unclear how much of a net gain companies will get from the new budget recommendations. "A lot of the spending post-Sept. 11 has been against existing contracts," said Ray Bjorkland, vice president for market intelligence at Federal Sources, a research firm.

Nevertheless, businesses are working on a game plan. "Now is the time for smaller companies to build business-development strategies for how best to approach state and federal governments," said Lorraine Lavet, chief operating officer of AeA, a high-tech trade group.

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