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): May 7, 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 May 7, 2009, reporting GTSI Corp.’s financial results for the three month period ended March 31, 2009.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits.

99.1 Press Release issued by GTSI Corp., dated May 7, 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: May 7, 2009

EXHIBIT INDEX

Exhibit No.	Description
99.1	Press Release issued by GTSI Corp., dated May 7, 2009.

EX-99.1

Exhibit 99.1

GTSI Reports First Quarter Results

Revenue Up Driven by Services Increases

First Quarter Operating Expenses Reduced to Lowest Level in Five Years

HERNDON, VA. — May 7, 2009 — GTSI (R) Corp. (NASDAQ: GTSI), an enterprise IT infrastructure solutions and services provider to the government, release financial and operational results for the first quarter of 2009.

“For 26 years, we have been providing outstanding technical solutions to our government customers. We are proud to serve our Nation and are pleased that the Federal government continues to seek our guidance during the early days of President Obama’s administration,” said Jim Leto, GTSI’s Chief Executive Officer. “During the quarter, we saw our customers undergoing a significant recalibration of their activities as they transitioned to the leadership of the Obama administration. We are pleased to report increased revenues, especially in the services area. We feel that despite some slippage of award timetables that there will be no decline in the need for technology solutions in the Federal government for this fiscal year. Our insight and activity related to sales opportunities is strong and we anticipate that the traditional budget expenditures will make the second half of 2009 a very busy time for GTSI.

“GTSI is still projecting more than 10% revenue and 20% earnings before taxes growth in 2009. We remain confident in our ability to meet the Administration’s technology focuses in the areas of healthcare, cyber security and technology modernization. In particular, we have a financing option that enables our government customers to operate their networks, while GTSI owns the asset, in keeping with a renewed interest in leveraging every budget dollar and insourcing certain aspects of government activities,” said Leto.

For the first quarter of 2009, GTSI reported sales of $144.1 million, a 0.9% increase from $142.8 million in the first quarter of 2008, and a net loss of $3.9 million ($0.39 per share) an improvement over a net loss of $5.1 million ($0.52 per share) reported in the first quarter of 2008 due to an income tax benefit. Selling, general and administrative expenses were $22.9 million, down from $25.9 million for the same period in 2008. This reduction in expenses is the direct result of a year-long effort to curtail expenses, resulting in the lowest first quarter operating expenses in five years.

Gross margin dollars in the first quarter of 2009 were $15.7 million compared to $21.4 million of gross margin in the first quarter of 2008. The decline of margin is due to product mix, primarily software, lower services utilization rate and increased use of third party service providers. The company ended the first quarter of 2009 with a higher margin backlog than in the same quarter a year ago.

Operations and Financial Update

Peter Whitfield, GTSI’s Senior Vice President and Chief Financial Officer, said, “GTSI ended the quarter with a strong balance sheet, an improving cash position and no outstanding debt under our Credit Facility. Our days sales outstanding (DSO) at the end of the quarter was 37 days. In addition, our net cash provided by operating activities improved by $3.5 million to $31.3 million in the quarter. During the quarter we placed stricter controls related to general expenses which should in turn keep expenses relatively low throughout 2009.

“Over the past several months GTSI’s stock has been under some selling pressure. To help alleviate that situation, on April 27, 2009 we purchased 316,861 shares of our common stock from an active seller for a total purchase price of $1,267,444 (or $4.00 per share) in a private transaction that was approved by GTSI’s Board of Directors,” said Whitfield. “As of May 6, 2009, GTSI has 9,598,622 shares outstanding.”

On April 27, 2009, the Company provided 30-day notification to SunTrust Bank, in its capacity as Administrative Agent, to terminate the Credit Facility. The Company is finalizing a new credit agreement with a group of lenders that will be in place before of the current Credit Facility expires.

Conference Call

An investor conference call to discuss first quarter results is scheduled for 11:00 a.m. Eastern Time, May 7, 2009. 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 May 15, 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 Time, May 15, 2009. To access the replay, please dial 877-919-4059 or 334-323-7226, pass code 82083725.

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/About.

GTSI Contacts:
Paul Liberty	Fern Krauss
703.502.2540	703-502-2054
paul.liberty@gtsi.com	301-424-9140
	fern.krauss@gtsi.com

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

	Three Months Ended						2009 vs 2008
	March 31,						Actual
	2009			2008			Better/(Worse)			Percentage
SALES
Product	$	127,719		$	127,567		$	152			0.1	%
Service		14,274			11,912			2,362			19.8	%
Financing		2,079			3,311			(1,232	)		-37.2	%
		144,072			142,790			1,282			0.9	%
COST OF SALES
Product		118,800			114,820			(3,980	)		-3.5	%
Service		9,284			5,717			(3,567	)		-62.4	%
Financing		325			847			522			61.6	%
		128,409			121,384			(7,025	)		-5.8	%
GROSS MARGIN		15,663			21,406			(5,743	)		-26.8	%
SELLING, GENERAL & ADMINISTRATIVE EXPENSES		22,863			25,871			3,008			11.6	%
LOSS FROM OPERATIONS		(7,200	)		(4,465	)		(2,735	)		-61.3	%
INTEREST AND OTHER INCOME (EXPENSE), NET		329			(647	)		976			150.9	%
LOSS BEFORE TAXES		(6,871	)		(5,112	)		(1,759	)		-34.4	%
INCOME TAX BENEFIT		2,991			48			2,943			6131.3	%
NET LOSS	$	(3,880	)	$	(5,064	)	$	1,184			23.4	%
LOSS PER SHARE
Basic	$	(0.39	)	$	(0.52	)	$	0.13			25.0	%
Diluted	$	(0.39	)	$	(0.52	)	$	0.13			25.0	%
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic		9,864			9,692			172			1.8	%
Diluted		9,864			9,692			172			1.8	%

GTSI Corp. Consolidated Balance Sheet
(In thousands)

					Change from December 31,
					2008
	March 31,		December 31,		Actual
	2009		2008		Better/(Worse)			Percentage
ASSETS
Current assets:
Cash and cash equivalents	$	8,547	$	—	$	8,547			100.0	%
Accounts receivable, net		145,121		190,740		(45,619	)		-23.9	%
Inventory		20,896		13,491		7,405			54.9	%
Deferred costs		6,056		7,849		(1,793	)		-22.8	%
Other current assets		11,515		7,807		3,708			47.5	%
Total current assets		192,135		219,887		(27,752	)		-12.6	%
Depreciable assets, net		13,045		13,664		(619	)		-4.5	%
Long-term receivables and other assets		44,907		14,078		30,829			219.0	%
TOTAL ASSETS	$	250,087	$	247,629	$	2,458			1.0	%
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Borrowings under credit facility	$	—	$	22,387	$	22,387			100.0	%
Accounts payable		111,229		103,553		(7,676	)		-7.4	%
Financed lease debt, current portion		3,019		6,538		3,519			53.8	%
Accrued liabilities		20,861		17,857		(3,004	)		-16.8	%
Deferred revenue		1,774		2,079		305			14.7	%
Total current liablilites		136,883		152,414		15,531			10.2	%
Long-term financed lease debt		682		2,530		1,848			73.0	%
Other liabilities		25,848		2,571		(23,277	)		-905.4	%
Total liabilities		163,413		157,515		(5,898	)		-3.7	%
Total stockholder’s equity		86,674		90,114		3,440			3.8	%
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	250,087	$	247,629	$	(2,458	)		-1.0	%