There are thousands of technology companies who work with the U.S. government and many of them could take a hit as the government shutdown over a border wall lingers on.
The shutdown which started on December 22 last year is yet to be over and companies such as Lyft and Uber who are seeking to go public are awaiting feedback from the U.S. Security and Exchange Commission to proceed.
Companies whose fiscal quarters ended in December are likely to get the strongest hit followed by those who get a higher percentage of its revenue from the government as analyzed by a team of analysts led by Keith Weiss.
According to the analysts, a cyber-security company, ForeScout, is believed to be badly affected as it generates 28% of its revenue directly from Federal, state and local government agencies. Another company that made the list is Pivotal as it generates 19% of its revenue from the government.
Even though many of these technology companies don’t come public with the exact percentage of their revenue received from the government but Morgan Stanley (part of the analyst) estimated that Oracle and Microsoft receive 15% and 9% respectively with their fiscal quarter which ended November 30 and December 31 respectively. But both companies have refused to comment on if they would be affected by the shutdown or not.
Finally, NetApp who receives 10 to 15% of its revenue from the government may also be affected as analyzed by a group led by Mehdi Hosseini. The company’s fiscal quarter will end January 27 with all hope lying on government calling off the shutdown before then.
Labels: ForeScout, Government Shutdown, Microsoft, NetApp, Oracle, Tech Company, Technology, Uber, US Government
