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): March 14, 2008

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.)

3901 Stonecroft Boulevard Chantilly, Virginia	20151-1010
(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 March 14, 2008, reporting GTSI Corp.’s reporting GTSI Corp.’s financial results for the three and 12-month periods ended December 31, 2007.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits.

99.1 Press Release issued by GTSI Corp., dated March 14, 2008.

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/ Joe Ragan                                  
      Joe Ragan
      Senior Vice President and CFO

Date: March 14, 2008

EXHIBIT INDEX

Exhibit
No.	Description
99.1	Press Release issued by GTSI Corp., dated March 14, 2008.

EX-99.1

Exhibit 99.1

GTSI Reports Fourth Quarter and Full-Year Results for 2007

Gross margin expansion, reduction of expenses and narrowed loss led the way

CHANTILLY, VA., March 14, 2008 — GTSI Corp. (NASDAQ: GTSI), an Enterprise IT infrastructure solutions and services provider to government, today announced financial results for the quarter and year ended December 31, 2007.

“We continue to build the company to promote future growth in the programs and services area, with a focus on increasing margin and reducing the highs and lows of revenue capture,” said Jim Leto, GTSI’s President and Chief Executive Officer. “During the fourth quarter and throughout the year, we have consolidated our resources and activities around key strategic partners which have resulted in a more efficient ‘go to market’ strategy. This activity has seen some attrition in product sales, but it is a concerted effort to streamline overall operating performance.

“To offset some of the anticipated short-term revenue declines we have been implementing an expense reduction initiative which has resulted in the lowest levels of operating expenses in four years. We will continue in our efforts to reduce expenses throughout 2008, while making investments in the services areas of the business which will help us drive margin,” said Leto.

Financial Update

Joe Ragan, GTSI’s Senior Vice President and Chief Financial Officer, said, “We continue to execute our financial strategy driving performance resulting in a $30 million improvement in net cash provided by operating activities from 2006 to 2007, representing a remarkable turn around. Also since the end of 2007, we retired $10 million in subordinated debt which cost us over $1 million in interest expense in 2007.

“For the first time in three years we delivered profitability for two consecutive quarters, the third and fourth quarters of 2007,” said Ragan. “We believe results of the fourth quarter indicate that the strategic decision to move away from commodity orders and into larger core technology product orders, infrastructure solutions and professional and financial services contracts, which have a longer sales cycle, is taking shape.”

After extensive remediation efforts over the past two years GTSI management deems it has effective financial controls related to its compliance with the Sarbanes-Oxley Act requirements.

Fourth Quarter and Year-End Financial Results

For the fourth quarter 2007, GTSI reported sales of $224.5 million, compared to $284.5 million in the same period a year ago and reported net income of $3.3 million or $0.33 of earnings per diluted share versus net income of $9.5 million or $0.98 of earnings per diluted shares in the fourth quarter of 2006. Operating expenses were $27.2 million down from $31.8 million in the fourth quarter of 2006. Gross margin in the fourth quarter of 2007 was 13.5%, down from 14.7% in the fourth quarter of 2006.

During the fourth quarter of 2006, GTSI reversed certain aged accrued liabilities of $5.8 million, decreasing cost of sales and increasing gross margin. For comparative purposes (a non-GAAP financial measure), adjusting for the fourth quarter of 2006 accrued liability reversal, net income would have been $3.7 million and earnings per diluted share would have been $0.38 for the quarter.

For the year ended December 31, 2007, GTSI reported sales of $723.5 million, a decrease from $863.0 in 2006, and reported a net loss of $1.8 million, after tax expenses of $0.6 million, or $0.18 of net loss per diluted share compared to a net loss of $3.0 million and $0.32 of net loss per diluted share in 2006. Operating expenses were down year over year at $106.3 million versus $115.2 million for 2006. Gross margin for 2007 increased to 14.5% versus 13.2% for 2006.

During 2006, GTSI incurred one-time unfavorable expenses of $9.0 million and certain favorable adjustments of $10.9 million in 2006. For comparative purposed (a non-GAAP measure) after adjusting for the 2006 adjustments, net loss for 2006 was $4.9 million or $0.52 of net loss per diluted share for the year.

Marketplace Update

“We have seen growth in our federal civilian, state and local government customers,” said Leto. “Due to the late passage of a catch-all spending bill companies such as GTSI saw many anticipated contracting opportunities push from the fourth quarter of 2007 into 2008. The waning days of 2007 ended nearly two budget cycles of uncertainty for government agencies which did not know how much money they could invest in technology applications. While this spending bill presents opportunities to solve technology problems for our customers, the lag time in the funds flow was pushed into the first half of 2008. Government agencies moving away from GWACs and increasingly using their own task orders, gives GTSI an excellent opportunity for GTSI to take advantage of our reach across many agencies.”

Conference Call

An investor conference call to discuss fourth quarter and full year results is scheduled for 10:30 a.m. Eastern Time March 14, 2008. Interested parties are invited to participate by calling 800-593-9034 or 334-323-7224, no pass code is required. In addition, you may access the webcast on GTSI’s Investor Relations page (www.gtsi.com/ir). Webcast will be available for replay through March 14, 2009. 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, March 31, 2008. To access the replay, please dial 877-919-4059 or 334-323-7226, pass code 21882475.

About GTSI Corp.
GTSI Corp. is an information technology solutions provider offering 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 government agencies to implement solutions of national and local significance 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 governments’ current and future requirements and business objectives. GTSI is headquartered in Northern Virginia, outside of Washington, D.C. Further information about the Company is available at www.GTSI.com/About

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 revenue, 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 those listed in the Company’s most recent annual report on Form 10—K and included from time to time in other reports 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. Consolidated Statements of Operations
(In thousands, except per share data)
(unaudited)

	Three Months Ended						Change from the Three
	December 31,						Months Ended December 31,
	2007			2006			Actual			Percentage
SALES
Product	$	203,254		$	256,318		$	(53,064	)		-20.7	%
Service		17,836			23,068			(5,232	)		-22.7	%
Financing		3,383			5,152			(1,769	)		-34.3	%
		224,473			284,538			(60,065	)		-21.1	%
COST OF SALES
Product		180,040			228,737			(48,697	)		-21.3	%
Service		12,960			11,399			1,561			13.7	%
Financing		1,152			2,629			(1,477	)		-56.2	%
		194,152			242,765			(48,613	)		-20.0	%
GROSS MARGIN		30,321			41,773			(11,452	)		-27.4	%
SELLING, GENERAL & ADMINISTRATIVE EXPENSES		27,167			31,829			(4,662	)		-14.6	%
LOSS FROM OPERATIONS		3,154			9,944			(6,790	)		-68.3	%
INTEREST AND OTHER INCOME (EXPENSE)		349			(481	)		830			172.6	%
INCOME BEFORE INCOME TAXES		3,503			9,463			(5,960	)		-63.0	%
INCOME TAX PROVISION		(218	)		—			(218	)		-100.0	%
NET INCOME	$	3,285		$	9,463		$	(6,178	)		-65.3	%
EARNINGS PER SHARE
Basic	$	0.34		$	1.00		$	(0.66	)		-66.1	%
Diluted	$	0.33		$	0.98		$	(0.65	)		-66.3	%
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic		9,635			9,414			221			2.3	%
Diluted		9,923			9,641			282			2.9	%

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

	Twelve Months Ended						Change from the Twelve
	December 31,						Months Ended December 31,
	2007			2006			Actual			Percentage
SALES
Product	$	641,560		$	779,896		$	(138,336	)		-17.7	%
Service		59,658			70,293			(10,635	)		-15.1	%
Financing		22,247			12,788			9,459			74.0	%
		723,465			862,977			(139,512	)		-16.2	%
COST OF SALES
Product		570,580			705,498			(134,918	)		-19.1	%
Service		38,276			38,261			15			0.0	%
Financing		9,889			5,439			4,450			81.8	%
		618,745			749,198			(130,453	)		-17.4	%
GROSS MARGIN		104,720			113,779			(9,059	)		-8.0	%
SELLING, GENERAL & ADMINISTRATIVE EXPENSES		106,335			115,240			(8,905	)		-7.7	%
LOSS FROM OPERATIONS		(1,615	)		(1,461	)		(154	)		-10.5	%
INTEREST AND OTHER INCOME (EXPENSE)		416			(1,663	)		2,079			125.0	%
LOSS BEFORE INCOME TAXES		(1,199	)		(3,124	)		1,925			61.6	%
INCOME TAX (PROVISION) BENEFIT		(568	)		110			(678	)		-616.4	%
NET LOSS	$	(1,767	)	$	(3,014	)	$	1,247			41.4	%
LOSS PER SHARE
Basic	$	(0.18	)	$	(0.32	)	$	0.14			42.6	%
Diluted	$	(0.18	)	$	(0.32	)	$	0.14			42.6	%
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic		9,571			9,371			200			2.1	%
Diluted		9,571			9,371			200			2.1	%

GTSI Corp. Consolidated Balance Sheet
(In thousands)

	December 31,				Change from December 31, 2006
	2007		2006		Actual			Percentage
ASSETS
Current assets:
Cash and cash equivalents	$	829	$	705	$	124			17.6	%
Accounts receivable, net		165,317		222,072		(56,755	)		-25.6	%
Inventory		21,577		35,691		(14,114	)		-39.5	%
Deferred costs		5,615		22,188		(16,573	)		-74.7	%
Other current assets		5,169		9,651		(4,482	)		-46.4	%
Total current assets		198,507		290,307		(91,800	)		-31.6	%
Depreciable assets, net		12,158		13,627		(1,469	)		-10.8	%
Long-term receivables and other assets		16,002		26,747		(10,745	)		-40.2	%
TOTAL ASSETS	$	226,667	$	330,681	$	(104,014	)		-31.5	%
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Borrowings under credit facility	$	18,031	$	30,912	$	(12,881	)		-41.7	%
Accounts payable		84,715		142,217		(57,502	)		-40.4	%
Financed lease debt, current portion		8,509		16,546		(8,037	)		-48.6	%
Accrued liabilities		14,725		23,194		(8,469	)		-36.5	%
Deferred revenue		2,542		7,241		(4,699	)		-64.9	%
Total current liablilites		128,522		220,110		(91,588	)		-41.6	%
Long-term debt		10,000		10,000		—			0.0	%
Long-term financed lease debt		9,068		18,758		(9,690	)		-51.7	%
Other liabilities		1,364		5,130		(3,766	)		-73.4	%
Total liabilities		148,954		253,998		(105,044	)		-41.4	%
Total stockholder’s equity		77,713		76,683		1,030			1.3	%
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	226,667	$	330,681	$	(104,014	)		-31.5	%