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 5, 2009

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 March 5, 2009, reporting GTSI Corp.’s financial results for the three and 12-month periods ended December 31, 2008.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits.

99.1 Press Release issued by GTSI Corp., dated March 5, 2009.

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/ James J. Leto
	James J. Leto Chief Executive Officer

Date: March 5, 2009

EXHIBIT INDEX

Exhibit Number	Description
99.1	Press Release issued by GTSI Corp., dated March 5, 2009.

EX-99.1

Exhibit 99.1

Government Contractor GTSI Reports Profitable Annual Results
for the First Time in Four Years

Company increases annual revenues by 13.5%, expands gross margin and
reduces operating expenses to the lowest levels in five years

HERNDON, VA., March 5, 2009 – GTSI Corp. (NASDAQ: GTSI), an Enterprise IT infrastructure solutions and services provider to the government, announced today its financial results for the quarter and year ended December 31, 2008.

“The outstanding results for 2008 indicate that GTSI has repositioned itself into a profitable company,” said Jim Leto, GTSI’s Chief Executive Officer. “Our drive towards profitability was achieved through a concerted effort to improve the quality of top line growth with a keen eye on increasing gross margin in our professional services offering as well as reducing operating expenses to levels not achieved since 2004. The transformation of GTSI continues as we move with greater speed into solutions and service offerings for our government customers.”

Selected Q4 2008 Results

• Revenue $262.1 million up from $225.1 million in Q4 2007

• Gross margin $31.8 million up from $30.5 million in Q4 2007

• Income before taxes $5.8 million up from $3.5 million in Q4 2007

• Net income $7.6 million up from $3.3 million in Q4 2007

• Diluted earnings per share $0.77 up from $0.33 in Q4 2007

“We have made significant progress in redesigning GTSI’s business model,” said Scott Friedlander, GTSI’s President and Chief Operating Officer. “By focusing and building on GTSI’s expertise, and combining it with selected industry technology partners, we have created a Technology Lifecycle Management (TLM) framework and delivery methodology for programs and projects. The TLM offering provides our customers with a solution from design and architecture to acquisition, integration, financing, installation and implementation of their information technology assets. Our customers benefit from our expertise as we work to help them achieve their mandate and mission.”

Selected 2008 Results

• Revenue $821.2 million up from $723.5 million in 2007

• Gross margin $107.4 million up from $104.7 million in 2007

• Income before taxes $6.0 million up from loss before taxes of $1.2 million in 2007

• Net income $7.8 million up from net loss of $1.8 million in 2007

• Diluted earnings per share $0.79 up from loss per share of $0.18 in 2007

“I am proud of the men and women of GTSI who have executed with precision and determination on behalf of our customer and have established a foundation we can build upon,” said Leto. “Despite the uncertainties of the economic climate and the dawn of a new Presidential Administration, we believe that GTSI is positioned to capture more profitable opportunities for the years to come.”

Financial Update

Peter Whitfield, GTSI’s Senior Vice President and Chief Financial Officer, said, “Over the past year we have improved several meaningful financial metrics. We are particularly proud of our ability to grow our Services segment. Gross Services revenue grew 25.4% over last year before the effect of netting. Services Gross Margin grew 31.1% year over year. We also improved our balance sheet by retiring $10 million in subordinated debt, in February 2008, resulting in annualized savings of $1.3 million in interest expense. Returning the company to profitability was an important goal for the company. We executed on our plan developed three years ago to begin returning value to our shareholders. We believe that GTSI is on track to continue controlling operating expenses while investing in the critical growth areas that are expected to yield higher margin for GTSI.”

GTSI released a tax valuation allowance in 2008 resulting in a $4.6 million increase in net income which was partially offset by current income tax expense of $2.8 million. The 2008 EBITDA (earnings before interest, taxes, depreciation, and amortization) was $12.6 million which improved 75% over 2007 and 123% over 2006. EBITDA is a non-GAAP measurement; please see “Exhibit 1” below for a reconciliation of EBITDA to net income (loss).

Marketplace Update

“The overall government marketplace has been affected by reduced budgets at the state and local levels and increased focus on economic stimulation at the federal level. Our customers, particularly at the federal level, are in the midst of a transition for the new Presidential Administration and as a result, we have seen some programs delayed as the new Administration establishes its priorities,” said Leto. “We are optimistic that the short-term funding delays at the federal level will be mitigated during the balance of 2009, particularly during the last six months of the year. While our revenues from state and local governments represent 7% of our total revenue, we believe that our financial service offerings that have been utilized by the federal government during the past six years should assist us in delivering much needed technology infrastructure to state and local governments with diminished budgets.”

Conference Call

An investor conference call to discuss fourth quarter and full year results is scheduled for 11:00 a.m. Eastern Time March 5, 2009. 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 5, 2010. 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 12, 2009. To access the replay, please dial 877-919-4059 or 334-323-7226, pass code 82470823.

About GTSI Corp.

GTSI Corp. provides information technology solutions by 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)

	Three Months Ended					Change from Three Months
	December 31,					Ended December 31, 2007
	2008		2007			Actual			Percentage
SALES
Product	$	241,170	$	203,253		$	37,917			18.7	%
Service		15,930		17,836			(1,906	)		-10.7	%
Financing		5,016		3,998			1,018			25.5	%
		262,116		225,087			37,029			16.5	%
COST OF SALES
Product		219,779		180,040			39,739			22.1	%
Service		8,129		12,960			(4,831	)		-37.3	%
Financing		2,441		1,626			815			50.1	%
		230,349		194,626			35,723			18.4	%
GROSS MARGIN		31,767		30,461			1,306			4.3	%
SELLING, GENERAL & ADMINISTRATIVE EXPENSES		27,605		27,167			438			1.6	%
INCOME FROM OPERATIONS		4,162		3,294			868			26.4	%
INTEREST AND OTHER INCOME		1,675		208			1,467			705.3	%
INCOME BEFORE INCOME TAXES		5,837		3,502			2,335			66.7	%
INCOME TAX BENEFIT (PROVISION)		1,744		(217	)		1,961			903.7	%
NET INCOME	$	7,581	$	3,285		$	4,296			130.8	%
EARNINGS PER SHARE
Basic	$	0.77	$	0.34		$	0.43			126.5	%
Diluted	$	0.77	$	0.33		$	0.44			133.3	%
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic		9,792		9,635			157			1.6	%
Diluted		9,857		9,923			(66	)		-0.7	%

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

	Twelve Months Ended					Change from Twelve Months
	December 31,					Ended December 31, 2007
	2008		2007			Actual			Percentage
SALES
Product	$	745,366	$	641,560		$	103,806			16.2	%
Service		56,529		59,658			(3,129	)		-5.2	%
Financing		19,270		22,247			(2,977	)		-13.4	%
		821,165		723,465			97,700			13.5	%
COST OF SALES
Product		673,858		568,247			105,611			18.6	%
Service		31,551		40,609			(9,058	)		-22.3	%
Financing		8,403		9,889			(1,486	)		-15.0	%
		713,812		618,745			95,067			15.4	%
GROSS MARGIN		107,353		104,720			2,633			2.5	%
SELLING, GENERAL & ADMINISTRATIVE EXPENSES		103,848		106,335			(2,487	)		-2.3	%
INCOME (LOSS) FROM OPERATIONS		3,505		(1,615	)		5,120			317.0	%
INTEREST AND OTHER INCOME		2,524		416			2,108			506.7	%
INCOME (LOSS) BEFORE INCOME TAXES		6,029		(1,199	)		7,228			602.8	%
INCOME TAX BENEFIT (PROVISION)		1,806		(568	)		2,374			418.0	%
NET INCOME (LOSS)	$	7,835	$	(1,767	)	$	9,602			543.4	%
EARNINGS (LOSS) PER SHARE
Basic	$	0.80	$	(0.18	)	$	0.98			544.4	%
Diluted	$	0.79	$	(0.18	)	$	0.97			538.9	%
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic		9,760		9,571			189			2.0	%
Diluted		9,865		9,571			294			3.1	%
EBITDA (a)		12,606		7,185			5,421			75.4	%

(a) See Exhibit 1 for reconciliation of EBITDA to Net income (loss)

GTSI Corp. Consolidated Balance Sheet
(In thousands)

	December 31,				Change from December 31, 2007
	2008		2007		Actual			Percentage
ASSETS
Current assets:
Cash and cash equivalents	$	—	$	829	$	(829	)		-100.0	%
Accounts receivable, net		190,740		165,317		25,423			15.4	%
Inventory		13,491		21,577		(8,086	)		-37.5	%
Deferred costs		7,849		5,615		2,234			39.8	%
Other current assets		7,807		5,169		2,638			51.0	%
Total current assets		219,887		198,507		21,380			10.8	%
Depreciable assets, net		13,664		12,158		1,506			12.4	%
Long-term receivables and other assets		14,078		16,002		(1,924	)		-12.0	%
TOTAL ASSETS	$	247,629	$	226,667	$	20,962			9.2	%
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Borrowings under credit facility	$	22,387	$	18,031	$	4,356			24.2	%
Accounts payable		103,553		84,715		18,838			22.2	%
Financed lease debt, current portion		6,538		8,509		(1,971	)		-23.2	%
Accrued liabilities		17,857		14,725		3,132			21.3	%
Deferred revenue		2,079		2,542		(463	)		-18.2	%
Total current liabilities		152,414		128,522		23,892			18.6	%
Long-term debt		—		10,000		(10,000	)		-100.0	%
Long-term financed lease debt		2,530		9,068		(6,538	)		-72.1	%
Other liabilities		2,571		1,364		1,207			88.5	%
Total liabilities		157,515		148,954		8,561			5.7	%
Total stockholder’s equity		90,114		77,713		12,401			16.0	%
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	247,629	$	226,667	$	20,962			9.2	%

GTSI Corp.
Exhibit 1 — EBITDA Reconciliation to Net Income (Loss)
(In thousands)

	Twelve Months Ended December 31,
	2008			2007			2006
EBITDA	$	12,606		$	7,185		$	5,643
Depreciation and Amortization		(3,448	)		(3,807	)		(3,737	)
Interest expense		(3,129	)		(4,577	)		(5,030	)
Income Tax benefit (provision)		1,806			(568	)		110
Net Income (Loss)	$	7,835		$	(1,767	)	$	(3,014	)