En Pointe Technologies, Inc. (Nasdaq: ENPT) rose 2 3/4 to 7 7/8 Monday after receiving a contract from the state of Minnesota.
El Segundo, California-based En Pointe said the contract, which could be worth more than $150 million per year, makes it the information technology solutions provider for the state. The contract runs for two years, with options for annual renewal thereafter.
“Because of the inherent complexities of managing multiple service level agreements under one contract, the state of Minnesota was looking for a company who had a proven record of delivering both hardware [and] managed services,” said Tom Dresser, vice president of global services for En Pointe.
En Pointe said it will provide procurement of hardware and services to more than 1,100 entities, including 130 state agencies, 87 counties, 155 cities and 75 school districts. The company has similar contracts with government agencies in California, Georgia, New York and Washington.
En Pointe reported a net loss of $9 million, or $1.38 per share, for the third quarter ended June 30th, compared with a loss of $900,000, or 16 cents, in the year-earlier quarter. Revenue for the period was $118 million, down from $183 million. Latest-quarter results included a $1.5 million charge for a reorganization that included job cuts, as the company converted five branch offices to “virtual” sales offices.
In addition to providing B2B procurement of information technology products and services, En Pointe has interests in Firstsource Corp., SupplyAccess, Inc. and enRamp, Inc.
Last week, SupplyAccess said it had been approved to sell its e-procurement services to U.S. federal government agencies.