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GTSI Corp. (GTSI) filed Quarterly Report for the period ended 2011-09-30.
Gtsi Corp. has a market cap of $41.14 million; its shares were traded at around $4.25 with a P/E ratio of 53.13 and P/S ratio of 0.06.
This is the annual revenues and earnings per share of GTSI over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of GTSI.
Highlight of Business Operations:
Services revenue includes the sale of professional services (including InSysCo), resold third-party services products, hardware warranties and maintenance on hardware. Revenues are netted where we are not the primary obligor and we netted approximately $31.8 million and $33.6 million for the three months ended September 30, 2010 and 2011, respectively. Services revenue decreased $2.0 million, or 12.3% from $15.9 million for the three months ended September 30, 2010 to $14.0 million for the three months ended September 30, 2011. Services revenue as a percent of total revenue increased from 6.7% for the three months ended September 30, 2010 to 14.6% for the three months ended September 30, 2011. Professional services are the main driver of the $2.0 services revenue decline. Professional services revenue declined by $1.6 million from $11.3 million for the three months ended September 30, 2011 as compared to $9.7 million for the three months ended September 30, 2010. The decline is professional services is due to a decline in the number of contracts between the comparable periods, offset by $3.1 million in revenue generated by InSysCo.Services gross margin increased $0.3 million, or 5.5%, from $4.9 million for the three months ended September 30, 2010 to $5.2 million for the three months ended September 30, 2011. The gross margin increase was driven by an overall decline in the base business of $0.4 million or 8.6% due to the overall decline in government spending, offset by an increase of $0.7 million or 22.5% from the impact of InSysCo acquisition. Services gross margin as a percentage of sales increased 6.2 percentage points from 31.1% for the three months ended September 30, 2010 to 37.3% for the three months ended September 30, 2011.
During the three months ended September 30, 2011, SG&A expenses decreased $2.9 million, or 14.1% from the same period in 2010. SG&A as a percentage of sales increased to 18.5% in the third quarter of 2011 from 8.7% for the same period in 2010. InSysCo had $0.9 million in SG&A expenses for the period which included non-recurring retention bonus expense related to the acquisition of $0.5 million. SG&A, net of InSysCo decreased $3.8 million or 18.7% and as a percentage of sales increased 9.4 percentage points compared to September 30, 2010. In response to lower sales, management has taken a proactive approach to reduce SG&A costs accordingly. As a result, personnel and incentive costs have decreased $2.6 million and $1.3 million, respectively, for the three months ended September 30, 2011 as compared to the same period in 2010. In addition, cost containment strategies resulted in $0.2 million in lower travel and entertainment expenses and $0.5 million in other operating expenses compared to the three months ended September 30, 2010. These savings are offset by an increase of $0.4 million in marketing costs primarily due to less vendor renewal registration fee income and $0.2 million increase in consulting and professional fees due to the SBA Agreement.
Services revenue includes the sale of professional services, resold third-party service products, hardware warranties and maintenance on hardware. Revenues are netted where we are not the primary obligor, we netted approximately $84.5 million and $71.4 million for the nine months ended September 30, 2010 and 2011, respectively. Services revenue decreased $6.3 million, or 16.4% from $38.6 million for the nine months ended September 30, 2010 to $32.3 million for the nine months ended September 30, 2011. Services revenue as a percent of total revenue increased from 8.1% for the nine months ended September 30, 2010 to 13.0% for the nine months ended September 30, 2011. Professional services are the main driver of the $6.3 million services revenue decline. Professional services revenue declined by $5.9 million from $22.1 million for the nine months ended September 30, 2011 as compared to $28.0 million for the nine months ended September 30, 2010. The decline in professional services is due to a decline in the number of contracts between the comparable periods, offset by $3.1 million in revenue generated by InSysCo.
During the nine months ended September 30, 2011, SG&A expenses decreased $10.8 million, or 16.8% compared to the same period in 2010. SG&A as a percentage of sales increased from 13.6% in the first three quarters of 2010 to 21.7% over the same period in 2011. InSysCo had $0.9 million in SG&A expenses for the period which included non-recurring retention bonus expense related to the acquisition of $0.5 million. SG&A, net of InSysCo decreased $11.7 million or 18.2%, and as a percentage of sales, increased 8.0 percentage points compared to September 30, 2010. In response to lower sales, management has taken a proactive approach to reduce SG&A costs accordingly. As a result, personnel and incentive costs have decreased 10.1 million and 2.8 million, respectively for the nine months ended September 30, 2011 as compared to September 30, 2010. In addition cost containment strategies have resulted in $0.7 million of lower travel expenses, $0.3 million of lower marketing expenses and $0.4 million of lower other operating expenses. These decreases are offset by $2.5 million in higher consulting and professional fees, mainly due to the SBA agreement during the nine months ended September 30, 2011.
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