Related Party Transactions

3 Months Ended

Mar. 31, 2012

Related Party Transactions [Abstract]

Related Party Transactions

14. Related Party Transactions

On August 19, 2011, GTSI sold its 37% equity interest in Eyak Technology, LLC (“EyakTek”) to EyakTek for $20 million and settled all of the pending arbitration proceedings, litigation and related disputes with EyakTek and its officers and other owners, pursuant to a settlement and redemption agreement. The investment in EyakTek was accounted for under the equity method and adjusted for earnings or losses as reported in the financial statements of EyakTek and dividends received from EyakTek. For the three months ended March 31, 2011 our equity in earnings was $1.1 million.

GTSI recognized sales to EyakTek and its subsidiary of $4.9 million for the three months ended March 31, 2011. GTSI received a fee from EyakTek based on sales from products sold at cost by GTSI to EyakTek. Fees recorded by the Company, which are recognized when EyakTek sells to third party customers, were less than $0.1 million for the three months ended March 31, 2011, which are included in sales in the accompanying unaudited condensed consolidated statements of operations.

The following table summarizes EyakTek’s financial information for the periods included in the accompanying unaudited condensed consolidated statements of operations.

	Three Months ended March 31,
	2012		2011
Revenues	$	—	$	66,882
Gross margin	$	—	$	8,562
Net income	$	—	$	2,984