8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): August 5, 2010

GTSI Corp.

(Exact name of registrant as specified in its charter)

Delaware	0-19394	54-1248422
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

2553 Dulles View Drive, #100 Herndon, Virginia	20171
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (703) 502-2000

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 Results of Operations and Financial Condition

The information contained in this Item 2.02 of this Current Report is being furnished in accordance with SEC Release Nos. 33-8216 and 34-47583.

The information, including the exhibits attached hereto, in this Current Report is being furnished and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. The information in this Current Report shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, except as otherwise expressly stated in such filing.

Attached and incorporated herein by reference as Exhibit 99.1 is a copy of a press release of GTSI Corp., dated August 5, 2010, reporting GTSI Corp.’s financial results for the three month period ended June 30, 2010.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits.

99.1 Press Release issued by GTSI Corp., dated August 5, 2010.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

GTSI Corp.
By:	/s/ Scott Friedlander
	Scott Friedlander
	President & Chief Executive Officer

Date: August 5, 2010

EX-99.1

Exhibit 99.1

GTSI Announces Second Quarter Results

Operating Expenses Continue to Decline, Cash Position Increases

HERNDON, VA., August 5, 2010 — GTSI Corp. (NASDAQ: GTSI), a systems integrator, solutions and services provider to the government, today announced its financial results for the three months ended June 30, 2010.

“During the second quarter we have been aggressively managing operating expenses and concentrating on our goal and 2010 business plan to grow our annual net income year over year. We feel that we are on track to achieve that goal,” said Scott Friedlander, GTSI’s President and Chief Executive Officer. “While we are changing the business model to a more sustained, predictable revenue systems integrator, we are still susceptible to quarterly fluxuations related to our core product business. For example, during the second quarter we had several large transactions push into the third quarter, which were booked in July. Despite the challenges of the second quarter we are making strides within the strategic plan and goals for 2010 and beyond.

“Overall the health of GTSI is sound. Our marketplace continues to be robust and offer significant opportunities. We are focused on executing on our strategy to advance our leadership in services and expect to deliver key contracting vehicles in the latter half of 2010 and early 2011 that will propel GTSI into the services realm in the years to come. We believe that GTSI is now ready to shift focus towards a growth model” said Scott Friedlander, GTSI’s President and Chief Executive Officer. “We will continue to manage and adjust our model towards an enterprise solutions and services focused systems integration with 50% of our gross margin from services by 2013.”

Second Quarter Update:

For the second quarter of 2010, GTSI reported sales of $135.0 million, compared to $164.6 million in second quarter of 2009. The Company continued to be impacted by an overall decrease in hardware and software revenue due to various government agencies spending trends. Gross margin for the second quarter of 2010 was $17.4 million as compared to $23.0 million for the second quarter of 2009. The Company experienced decreased activity with two Department of Defense customers and continued pricing pressures from vendors that negatively impacted gross margin.

Operating expenses were $21.6 million in the second quarter 2010, a decrease of $2.8 million from $24.4 million in the second quarter of 2009, mainly due to lower personnel related costs. The quarter resulted in a net loss of $1.2 million ($0.13 loss per share basic and diluted) versus a net loss of $0.3 million ($0.03 loss per share basic and diluted) in the second quarter of 2009.

Operations and Financial Update:

“During the second quarter 2010 we improved our operating expenses and we ended the quarter with a strong cash position of $33.5 million,” said Peter Whitfield GTSI’s Senior Vice President and Chief Financial Officer. “GTSI has generated positive cash flow for the past 16 months and we remain in that position today. Also during the second quarter, we purchased 76,479 shares of our common stock.

We have purchased a total of 592,218 shares since January 2009. Subject to various market conditions and our cash situation, we plan to continue our share repurchase program.”

Conference Call

An investor conference call to discuss second quarter is scheduled for 10:00 a.m. Eastern Time August 5, 2010. Interested parties are invited to participate by calling 800-593-9034 or 334-323-7224, pass code is GTSI. In addition, you may access the webcast on GTSI’s Investor Relations page (www.gtsi.com/ir). Webcast will be available for replay through August 5, 2011. To listen to the live call on the Internet, go to the web site at least 15 minutes early to register, download and install any necessary audio software. A replay will be available following the conclusion of the call until 6:00 p.m. eastern, August 15, 2010. To access the replay, please dial 877-919-4059 or 334-323-7226, pass code 94039349.

About GTSI Corp.

GTSI Corp. provides a Technology Lifecycle Management (TLM) approach to IT infrastructure solutions delivered through industry-leading professional and financial services. GTSI employs a proactive, strategic methodology that streamlines technology lifecycle management, from initial assessment to acquisition, implementation, refresh, and disposal. TLM allows customers to implement solutions quickly and cost-effectively. GTSI’s certified engineers and project managers leverage strategic partnerships with technology innovators. These experts use proven, repeatable processes to design, deploy, manage, and support simple to complex solutions, to meet client’s current and future requirements and business objectives. GTSI is headquartered in Northern Virginia, outside of Washington, D.C. and was named as one of “Best Places to Work” in 2009. Further information about the Company is available at www.GTSI.com.

Except for historical information, all of the statements, expectations, beliefs and assumptions contained in the foregoing are “forward-looking statements” (within the meaning of the Private Securities Litigation Reform Act of 1995) that involve a number of risks and uncertainties. It is possible that the assumptions made by management, including, but not limited to, those relating to sales, margins, operating results and net income, and the effect of new contracts and lender agreements, as well as new vendor relationships may not materialize. Actual results may differ materially from those projected or implied in any forward-looking statements. In addition to the above factors, other important factors that could cause actual results to differ materially are discussed in the Company’s most recent annual report on Form 10-K and included from time to time in other documents filed by the Company with the Securities and Exchange Commission.

GTSI and GTSI.com are registered trademarks of GTSI Corp. in the U.S. and other countries. All trade names are the property of their respective owners.

GTSI Contact:
Paul Liberty
Vice President, Corporate Affairs & Investor Relations
703.502.2540
paul.liberty@gtsi.com

GTSI Corp. Unaudited Condensed Consolidated Statements of Operations
(In thousands, except per share data)

	Three Months Ended
	June 30,						2010 vs 2009
	2010			2009			Variance			Percentage
SALES
Product	$	120,944			149,869		$	(28,925	)		-19.3	%
Service		11,958			12,576			(618	)		-4.9	%
Financing		2,145			2,156			(11	)		-0.5	%
		135,047			164,601			(29,554	)		-18.0	%
COST OF SALES
Product	$	109,287			133,217		$	23,930			18.0	%
Service		7,623			7,640			17			0.2	%
Financing		688			724			36			5.0	%
		117,598			141,581			23,983			16.9	%
GROSS MARGIN		17,449			23,020			(5,571	)		-24.2	%
SELLING, GENERAL & ADMINISTRATIVE EXPENSES		21,646			24,428			2,782			11.4	%
LOSS FROM OPERATIONS		(4,197	)		(1,408	)		(2,789	)		198.1	%
INTEREST AND OTHER INCOME, NET		2,127			942			1,185			125.8	%
LOSS BEFORE TAXES		(2,070	)		(466	)		(1,604	)		344.2	%
INCOME TAX BENEFIT		834			156			678			434.6	%
NET LOSS	$	(1,236	)	$	(310	)	$	(926	)		298.7	%
LOSS PER SHARE
Basic	$	(0.13	)	$	(0.03	)	$	(0.10	)		333.3	%
Diluted	$	(0.13	)	$	(0.03	)	$	(0.10	)		333.3	%
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic		9,593			9,700			(107	)		-1.1	%
Diluted		9,593			9,700			(107	)		-1.1	%

GTSI Corp. Unaudited Condensed Consolidated Statements of Operations
(In thousands, except per share data)

	Six Months Ended
	June 30,						2010 vs 2009
	2010			2009			Variance			Percentage
SALES
Product	$	209,659			277,589		$	(67,930	)		-24.5	%
Service		22,674			26,850			(4,176	)		-15.6	%
Financing		4,528			4,234			294			6.9	%
		236,861			308,673			(71,812	)		-23.3	%
COST OF SALES
Product	$	189,740			252,016		$	62,276			24.7	%
Service		14,603			16,924			2,321			13.7	%
Financing		1,550			1,050			(500	)		-47.6	%
		205,893			269,990			64,097			23.7	%
GROSS MARGIN		30,968			38,683			(7,715	)		-19.9	%
SELLING, GENERAL & ADMINISTRATIVE EXPENSES		43,860			47,291			3,431			7.3	%
LOSS FROM OPERATIONS		(12,892	)		(8,608	)		(4,284	)		49.8	%
INTEREST AND OTHER INCOME, NET		3,576			1,270			2,306			181.6	%
LOSS BEFORE TAXES		(9,316	)		(7,338	)		(1,978	)		27.0	%
INCOME TAX BENEFIT		3,492			3,148			344			10.9	%
NET LOSS	$	(5,824	)	$	(4,190	)	$	(1,634	)		39.0	%
LOSS PER SHARE
Basic	$	(0.61	)	$	(0.43	)	$	(0.18	)		41.9	%
Diluted	$	(0.61	)	$	(0.43	)	$	(0.18	)		41.9	%
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic		9,605			9,781			(176	)		-1.8	%
Diluted		9,605			9,781			(176	)		-1.8	%

GTSI Corp. Unaudited Condensed Consolidated Balance Sheets
(In thousands)

					Change from December 31,
	June 30,		December 31,		2009
	2010		2009		Variance			Percentage
ASSETS
Current assets:
Cash and cash equivalents	$	33,462	$	7,894	$	25,568			323.9	%
Accounts receivable, net		143,037		209,595		(66,558	)		-31.8	%
Inventory		8,555		13,477		(4,922	)		-36.5	%
Deferred costs		1,970		1,807		163			9.0	%
Other current assets		7,607		4,140		3,467			83.7	%
Total current assets		194,631		236,913		(42,282	)		-17.8	%
Depreciable assets, net		9,259		10,960		(1,701	)		-15.5	%
Long-term receivables and other assets		41,377		40,758		619			1.5	%
TOTAL ASSETS	$	245,267	$	288,631	$	(43,364	)		-15.0	%
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	60,468	$	109,723	$	49,255			44.9	%
Accounts payable — floor plan		51,939		34,889		(17,050	)		-48.9	%
Financed lease debt, current portion		338		831		493			59.3	%
Accrued liabilities		18,678		26,127		7,449			28.5	%
Deferred revenue		4,472		3,176		(1,296	)		-40.8	%
Total current liabilities		135,895		174,746		38,851			22.2	%
Other liabilities		18,587		17,598		(989	)		-5.6	%
Total liabilities		154,482		192,344		37,862			19.7	%
Total stockholder’s equity		90,785		96,287		5,502			5.7	%
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	245,267	$	288,631	$	43,364			15.0	%