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): November 15, 2010

GTSI Corp.

(Exact name of registrant as specified in its charter)

Delaware	1-34871	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 November 15, 2010, reporting GTSI Corp.’s financial results for the three month period ended September 30, 2010.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits.

99.1 Press Release issued by GTSI Corp., dated November 15, 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/ Peter Whitfield
	Peter Whitfield
	Acting Co-Chief Executive Officer, Senior Vice President and Chief Financial Officer

Date: November 15, 2010

EX-99.1

Exhibit 99.1

GTSI Delivers Strong Third Quarter

Sales up 13%, Operating Expenses down 14%, Net Income up 55%

HERNDON, VA., November 15, 2010 — GTSI Corp. (NASDAQ: GTSI) a systems integrator, solutions and services provider to the U.S. Federal, state and local governments, today released financial and operational results for the third quarter of 2010.

“The team delivered an outstanding quarter. Revenue, on a year-over-year basis, was up in all sales categories, gross margin was up, operating expenses were down, income from operations was up, with net income up and earnings per share up sharply for the quarter,” said Sandra Gillespie, GTSI’s Acting Co-Chief Executive Officer. “The third quarter started out strong and continued to build as we focused on the end of the Federal government fiscal year on September 30^th. With a concerted effort by our sales group and the entire GTSI team, we identified opportunities, developed strategies for overcoming obstacles and delivered solid financial results.”

Third Quarter 2010 Update:

• Sales were $237.4 million, a $27.7 million (13.2%) increase over sales of $209.7 million in the third quarter of 2009. All three revenue categories — product, services and financing — were up year over year.

• Gross margin was $29.8 million a $0.9 million (3.0%) increase over gross margin of $28.9 million for the third quarter of 2009

• Operating expenses were $20.6 million down $3.2 million (13.6%) from $23.8 million in the third quarter of 2009, mainly due to lower personnel related costs.

• Income from operations was $9.2 million a $4.1 million ( 81.1%) increase over income from operations of $5.1 million in the third quarter of 2009

• Income from our investment in EyakTek was $2.2 million a $0.2 million (7.4%) increase over $2.0 million in the third quarter of 2009

• Net income was $5.9 million a $2.1 million (55.3%) improvement, or $0.62 earnings per diluted share, over net income of $3.8 million, or $0.39 earnings per diluted share, in the third quarter of 2009.

“When we started the third quarter our results from the first half of the year were below expectations,” said Gillespie. “We made significant progress in closing the gap. Despite the recent SBA activities that prohibit small business relationships, we have not lost focus on our customers’ needs for GTSI’s developed and delivered solutions and services.”

Financial Update

“We ended the quarter with $17.3 million in cash on the balance sheet, as well as strong accounts receivable,” said Peter Whitfield, Chief Financial Officer and Acting Co-Chief Executive Officer for GTSI. “Inventory levels were down slightly year-over-year, while book value improved to $10.09 in the third quarter of 2010 versus $9.17 in the third quarter of 2009. Subsequent to the end of the third quarter, we entered into a modification of our credit facility to reduce the size from $135 million to $100 million. ”

Small Business Administration (SBA) update

As required by the Administrative Agreement between GTSI and the SBA the company has established an internal ethics officer that reports directly to the Chairman of our Board’s Audit Committee and the company and the SBA have agreed on a seasoned government contracting examination firm to serve as the monitor required by the SBA agreement.

Conference Call

An investor conference call to discuss results for the quarter ended September 30, 2010 is scheduled for 10:00 a.m. Eastern Time November 15, 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 November 15, 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 pm Eastern Time, November 30, 2010. To access the replay, please dial 877-919-4059 or 334-323-7226, pass code 62962420.

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
	September 30,						2010 vs 2009
	2010			2009			Variance			Percentage
SALES
Product		208,797			189,234		$	19,563			10.3	%
Service		15,907			13,985			1,922			13.7	%
Financing		12,663			6,465			6,198			95.9	%
		237,367			209,684			27,683			13.2	%
COST OF SALES
Product		189,092			169,550		$	(19,542	)		-11.5	%
Service		10,968			8,745			(2,223	)		-25.4	%
Financing		7,519			2,475			(5,044	)		-203.8	%
		207,579			180,770			(26,809	)		-14.8	%
GROSS MARGIN		29,788			28,914			874			3.0	%
SELLING, GENERAL & ADMINISTRATIVE EXPENSES		20,592			23,836			3,244			13.6	%
INCOME FROM OPERATIONS		9,196			5,078			4,118			81.1	%
INTEREST AND OTHER INCOME, NET		2,067			1,979			88			4.4	%
INCOME BEFORE TAXES		11,263			7,057			4,206			59.6	%
INCOME EXPENSE		(5,329	)		(3,236	)		(2,093	)		-64.7	%
NET INCOME	$	5,934		$	3,821		$	2,113			55.3	%
EARNINGS PER SHARE
Basic	$	0.62		$	0.40		$	0.22			55.0	%
Diluted	$	0.62		$	0.39		$	0.23			59.0	%
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic		9,603			9,651			(48	)		0.5	%
Diluted		9,629			9,787			(158	)		1.6	%

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

	Nine Months Ended
	September 30,						2010 vs 2009
	2010			2009			Variance			Percentage
SALES
Product	$	418,456			466,822		$	(48,366	)		-10.4	%
Service		38,581			40,835			(2,254	)		-5.5	%
Financing		17,191			10,700			6,491			60.7	%
		474,228			518,357			(44,129	)		-8.5	%
COST OF SALES
Product		378,833			421,566		$	42,733			10.1	%
Service		25,571			25,669			98			0.4	%
Financing		9,068			3,525			(5,543	)		-157.2	%
		413,472			450,760			37,288			8.3	%
GROSS MARGIN		60,756			67,597			(6,841	)		-10.1	%
SELLING, GENERAL & ADMINISTRATIVE EXPENSES		64,452			71,128			6,676			9.4	%
LOSS FROM OPERATIONS		(3,696	)		(3,531	)		(165	)		-4.7	%
INTEREST AND OTHER INCOME, NET		5,644			3,251			2,393			73.6	%
INCOME (LOSS) BEFORE TAXES		1,948			(280	)		2,228			795.7	%
INCOME TAX EXPENSE		(1,838	)		(89	)		(1,749	)		-1965.2	%
NET INCOME (LOSS)	$	110		$	(369	)	$	479			129.8	%
EARNINGS (LOSS) PER SHARE
Basic	$	0.01		$	(0.04	)	$	0.05			125.0	%
Diluted	$	0.01		$	(0.04	)	$	0.05			125.0	%
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic		9,604			9,737			(133	)		1.4	%
Diluted		9,653			9,737			(84	)		0.9	%

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

					Change from December 31,
	September 30,		December 31,		2009
	2010		2009		Variance			Percentage
ASSETS
Current assets:
Cash and cash equivalents	$	17,286	$	7,894	$	9,392			119.0	%
Accounts receivable, net		195,843		209,595		(13,752	)		-6.6	%
Inventory		19,202		13,477		5,725			42.5	%
Deferred costs		3,270		1,807		1,463			81.0	%
Other current assets		2,433		4,140		(1,707	)		-41.2	%
Total current assets		238,034		236,913		1,121			0.5	%
Depreciable assets, net		8,381		10,960		(2,579	)		-23.5	%
Long-term receivables and other assets		38,734		40,758		(2,024	)		-5.0	%
TOTAL ASSETS	$	285,149	$	288,631	$	(3,482	)		-1.2	%
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	88,053	$	109,723	$	21,670			19.7	%
Accounts payable — floor plan		54,694		34,889		(19,805	)		-56.8	%
Financed lease debt, current portion		85		831		746			89.8	%
Accrued liabilities		23,547		26,127		2,580			9.9	%
Deferred revenue		3,252		3,176		(76	)		-2.4	%
Total current liabilities		169,631		174,746		5,115			2.9	%
Other liabilities		18,543		17,598		(945	)		-5.4	%
Total liabilities		188,174		192,344		4,170			2.2	%
Total stockholder’s equity		96,975		96,287		(688	)		-0.7	%
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	285,149	$	288,631	$	3,482			1.2	%