DEFENSE TECHNOLOGY/GOVERNMENT SERVICES
MONTHLY REVIEW (DECEMBER 2008)
HAPPY NEW YEAR!
Key Points
• December 2008 Update and 2009 Outlook. While 2008 has been a tough year for the
broader indices, our Government Service and Defense Technology coverage groups have
posted respectable relative outperformance. In this month’s report we provide our 2009
Government Services and Defense Technology outlook. As always, please feel free to phone
or email us at defense@bbandtcm.com. Have a safe and prosperous new year!
• Performance Review. In 2008, the S&P 500 Index, S&P IT, S&P Aerospace & Defense,
and Nasdaq Composite indices decreased 38.5%, 43.7%, 37.8%, and 40.5%, respectively. By
comparison, our universe of Defense Technology coverage depreciated 2.8% over the same
period and was down 28.1% from its average rolling 52-week high. Our universe of
Government Services coverage was up 7.7% over the same period and was down 18.0% from
its average rolling 52-week high.
• Estimate Revisions. Since September 30, 2008, the companies we track showed CY’09
EPS estimates decreasing by an average of 14.3%, according to First Call. A breakdown of the
group shows 17 companies with increased EPS expectations and 35 with decreased EPS
expectations during the period. The Government Services segment fared best with an
average decrease of 0.3% versus a 9.8% decrease in Diversified A&D, a 14.7% decrease in
Defense Technology, and a 30.1% decrease in expectations for Homeland Security–focused
firms.
• Short Interest Report. From late November 2008 to late December 2008, short positions
within our entire universe of monitored companies increased 3.5% (vs. a decrease of 9.2%
last month). Within Government Services, four of the six companies we cover showed an
increase in short interest over the period, and within our Defense Technology coverage,
three of the seven companies we cover showed an increase in short interest over the period.
Finally, as a group, 27 of the 55 companies we monitor showed an increase in short positions
as reported in December 2008.
• Prime Contract Recompetes through March 31, 2009. We provide data on
anticipated federal government prime contract recompetes through March 31, 2009. Data is
sorted by anticipated award date and lists the department requesting services, program
name, current status of the recompete, and estimated projected value of the new contract.
• Comparable Company Analysis, Additional Schedules, and Charts. On pages 18–
28 we provide a comparable company analysis segmenting Defense Technology,
Government Services, Diversified Aerospace & Defense, and Homeland Security–focused
firms. Data points include BB&TCM estimates for covered companies and First Call
consensus estimates for non-covered firms. We also provide: Stock Performance Summary;
Insider Ownership & Major Shareholders; Calendar Q4’08 Contract Award Review; Top 20
Department of Defense and Federal Civilian Opportunities; Industry “Revolving Door”;
Upcoming Conferences; and Recent BB&TCM Research Reports.

CONTENTS
December 2008 Update—Happy New Year!.................................................................................3
Stock Performance Summary ........................................................................................................8
Valuation Review Based On BB&TCM Calendar-Year Projections............................................ 12
Government Services Comparable Valuation Based on BB&T Capital Markets Estimates ...... 13
Defense Technology Comparable Valuation Based on BB&T Capital Markets Estimates ........ 14
Government Services Comparable Valuation Based on First Call Consensus Estimates ......... 15
Defense Technology Comparable Valuation Based on First Call Consensus Estimates ........... 16
Comparable Company Analysis ................................................................................................... 18
2009 First Call EPS Estimate Revision Report...........................................................................29
Short Interest Report .................................................................................................................. 30
Insider Transactions and Major Shareholders............................................................................ 31
Contract Award Review................................................................................................................33
Government Services................................................................................................................33
Defense Technology..................................................................................................................38
Prime Contract Recompetes ........................................................................................................ 41
Top 20 Department of Defense & Federal Civilian Opportunities.............................................45
Department of Defense ............................................................................................................45
Federal Civilian........................................................................................................................47
Industry “Revolving Door”—Who’s In, Who’s Out? ...................................................................49
Upcoming Hearings & Industry Conferences .............................................................................50
Recent BB&T Capital Markets Research Reports ....................................................................... 51