Question-and-Answer Session
Operator
(Operator Instructions). And our first question is from the line of Bill Loomis with Stifel Nicolaus. Please go ahead.
Bill Loomis - Stifel Nicolaus
Hi, thank you. Good quarter. Can you just talk about the seasonality in the business? Usually I would expect more than $5 million or so revenue sequential change, and a penny on EPS from March to June. Are you concerned about the budget outlook in June as far as the supplemental, or what are some of the other factors outside of the lower re-billables, just looking at the direct labor that would result in the June quarter looking a little bit closure to the March than historical?
Steve Hughes
Bill, it’s Steve. There are a couple of factors here. First, we've decided that we want to pursue more a richer labor services mix and a revenue component. In fact, we have elected not to bid on some contracts that hit a low-margin, direct-materials component. So there is a determination that we will head in that direction try to boost our margin and try to increase the high level component by work.
Secondly, there are budget pressures existing right now, and typically what we have seen is a big Spike in Q2, the December quarter materials with that that kind of rate kind of dropping a little bit in Q3, and Q4 but continuing very strong. But as you look at this year, we are basically looking at about $10 million less of direct materials purchase of hardware and software in both Q3 and Q4. At the same time, our labor services revenue would grow probably about twice the rate of total revenue growth for those two quarters.
Operator
Our next question comes from the line of Tim Quillin with Stephens Incorporated. Please go ahead.
Tim Quillin - Stephens Incorporated
Steve, good afternoon. On the President’s budget request and the IT component there, it looks like the budget for USA. It is going up quite a bit -- doubling year-to-year. I wonder if there is any implications for us, and if you can talk just generally about what you are seeing in terms of trends there where it’s been -- maybe a headwind of growth maybe or turn into a tailwind? Thanks.
Stan Sloane
Well, if you looked at the IT budget overall, I think it's probably better than what most of us were thinking. I don’t know that I would point to anyone particular agency. So AID is up from the '08 enacted was 88, and '09 request is it was figure to 176, sorry.
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