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SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): October 9, 1997
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GOVERNMENT TECHNOLOGY SERVICES, INC.
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(Exact name of registrant as specified in its charter)
Delaware 0-19394 54-1248422
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(State or other (Commission (IRS Employer
jurisdiction of File Identification
incorporation) Number) Number)
4100 Lafayette Center Drive, Chantilly, Virginia 20151-1200
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: 703-502-2000
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Item 1. Changes in Control of Registrant
Not Applicable.
Item 2. Acquisition or Disposition of Assets
Not Applicable.
Item 3. Bankruptcy or Receivership
Not Applicable.
Item 4. Changes in Registrant's Certifying Accountant
Not Applicable.
Item 5. Other Events
On October 9, 1997, Government Technology Services, Inc. ("GTSI" or the
"Company") issued a press release announcing that it has reached an agreement
of certain legal matters. For additional information, please see the
attached press release.
Item 6. Resignation of Registrant's Directors
Not Applicable.
Item 7. Financial Statements and Exhibits
(c) Exhibits
99.1 Press release dated October 9, 1997
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
Date: October 14, 1997
GOVERNMENT TECHNOLOGY SERVICES, INC.
By: /s/ M. DENDY YOUNG
M. Dendy Young
President and Chief Executive Officer
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INDEX TO EXHIBITS
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EXHIBIT |
NUMBER | DESCRIPTION
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99.1 | Press release dated October 9, 1997
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Exhibit 99.1
[GTSI Logo]
Government Technology Services, Inc.
4100 Lafayette Center Drive
Chantilly, VA 20151-1200
(703) 502-2000
www.gtsi.com
Fern Krauss
ESTN Communications
(301) 424-9140
[email protected]
GTSI SETTLES GSA AUDIT CASE
CHANTILLY, VA, October 9, 1997 - Government Technology Services, Inc.
(Nasdaq: GTSI) announced today that it has reached an agreement with the
U.S. Government resolving claims regarding alleged non-disclosure and use
by the Company of vendor rebates and marketing funds in connection with GSA
Schedule product sales. Under the agreement, GTSI will pay the government
a total of $400,000 in three equal annual installments, with interest
accruing from the date of the settlement. The agreement resolves and
releases the Company from claims under the previously disclosed GSA audit
of the Company's GSA Schedule sales for the years 1988 to the present, and
settles and dismisses with prejudice a qui tam lawsuit filed on behalf of
the Government regarding such GSA Schedule sales. The qui tam lawsuit
naming the Company was filed under seal in 1995 and has been subject to a
court order prohibiting disclosure of the suit. The qui tam action was
filed by the same individual who filed a similar action against Novell,
Inc. in 1992, which Novell settled by paying the government $1.7 million.
GTSI Chief Executive Officer Dendy Young said, "We are pleased that after a
long and thorough audit by the U.S. Government, we have been able to settle
the government's claims on favorable terms. This settlement removes a
great deal of uncertainty surrounding GTSI's outlook and eliminates the
substantial workload associated with responding to the related Government
audit. We look forward to continuing to serve and work with our government
customers to provide top quality service and a broad selection of
microcomputer, workstation, and network-based solutions."
Except for historical information, all of the statements, expectations and
assumptions contained in the foregoing are "forward-looking statements"
(within the meaning of the Private Securities Litigation Reform Act of
1995) that involve a number of risks and uncertainties. It is possible
that the assumptions made by management for purposes of such statements may
not materialize. Actual results may differ materially from those projected
or implied in any forward-looking statements. In addition to the above
factors, other important factors that could cause actual results to differ
materially are those listed in the Company's most recent report on Form
10-K and included from time to time in other documents filed by the Company
with the Securities and Exchange commission.
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GTSI is the largest dedicated government reseller providing broad-based
information technology solutions. The Company offers access to over
100,000 information technology products from more than 2,000 manufacturers.
Headquartered in the Washington metropolitan area, GTSI employs more than
400 people and provides products and services to federal, state and local
government customers worldwide.
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GTSI is a registered service mark of Government Technology Services, Inc.
All other trademarks and service marks are proprietary to their respective
owners.
