GTSI Corp. (NASDAQ: GTSI), a systems integration, solutions and services provider to federal, state and local governments, today announced its financial results for the three months and six months ended June 30, 2011.
“For the second quarter and first half of 2011, we have significantly improved results from GTSI Operations compared to the second quarter and first half of 2010. We are working to improve the results of GTSI Operations by focusing on higher gross margin business and reducing the cost of operations.” said Sterling Phillips, GTSI’s Chief Executive Officer and President. “Second quarter results show an 18.5% reduction in loss from GTSI Operations compared to second quarter of 2010 and 31.2% reduction in loss for the first half of 2011 compared to the same period in 2010.” While GTSI Operations is a non – GAAP metric we believe it is a useful measure of the Company’s performance. It allows investors to distinguish the operating performance of the Company’s organic business compared to the contribution from its investment in Eyak Technology LLC.
For the second quarter of 2011, GTSI reported revenue of $81.3 million compared to $135.0 million for the second quarter of 2010, a revenue decline of 39.8%. Gross margin for the second quarter of 2011 decreased to $14.2 million from $17.4 million, a reduction of 18.9%, from the same period in 2010. Gross Margin percent for the second quarter was 17.4% compared to 12.9% for the same quarter last year. Operating expenses declined $4.0 million or 18.5% to $17.6 million compared to $21.6 million for the second quarter of 2010. This reduction of operating expenses is due primarily to the Company’s ongoing strategic cost reduction actions first initiated in 2010. The loss from GTSI Operations declined $0.8 million or 18.5% for the quarter compared to the loss for the second quarter of 2010. Earnings from our investment in Eyak Technology LLC. declined $1.1 million or 46.2% to $1.3 million compared to $2.4 million for the second quarter of 2010. The total net loss for the second quarter of 2011 was $1.5 million, compared to a net loss of $1.2 million for the same period in 2010. Diluted loss per share from GTSI Operations for the second quarter declined 17.6% or $0.05 per share compared to a $0.28 per share loss for the second quarter of 2010. Diluted earnings per share from our investment in Eyak Technology LLC. declined $0.07 or 44.6% per share. Our total loss per share declined $0.02 per share or 16.8% compared to the same quarter last year.