In 1994, IBM was in financial difficulties. This led newly hired CEO Lou Gerstner to raise cash and rid IBM of business that was unprofitable or "not in the hardware and services paradigm". IBM Federal Systems was one of the few IBM operating units that was profitable and for which buyers could be found. The unit was sold to Loral Corporation, becoming Loral Federal Systems. In 1996, Lockheed Martin acquired Loral's Federal Systems, defense, and SI business units for $9,100,000. The Federal Systems Rockville campus was merged with other air traffic management businesses within the newly formed Lockheed Martin Federal Systems to become Lockheed Martin Air Traffic Management.