GTSI suspension sends 2010 revenues into the red
Cost of lifting suspension affects figures
- By David Hubler
- Mar 11, 2011
GTSI Corp. reported that its fourth quarter and fiscal 2010 were “significantly impacted” by the Small Business Administration's decision to temporarily suspend the company from new business in October and the costs involved in getting the suspension lifted.
For the year ending Dec. 31, 2010, GTSI reported a net loss of $930,000, compared to a profit of $5.5 million in 2009.
“During the fourth quarter, GTSI saw gross margin negatively impacted by $9.6 million and an increase of $3.4 million in operating expenses driven primarily by legal and related costs,” said Sterling Phillips, GTSI’s CEO and president, in the company’s earning statement today.
SBA agreement puts GTSI under a microscope
GTSI reported fourth-quarter revenue of $192.5 million compared to $243.5 million for the same quarter of 2009, a drop of 21 percent.
For the full year, GTSI racked up $666.7 million in revenue compared to $761.9 million in 2009, a 12.5 percent decline.
Operating expenses for the quarter were $23.2 million compared to $27.0 million for the 2009 quarter, down 14.1 percent, driven primarily by strategic restructuring actions taken earlier in the year, according to the statement.
Operating expenses in 2010 also dropped to $87.6 million compared to $98.1 million in 2009, down 10.7 percent.
Gross margin for the final three months of 2010 was $19.6 million a drop from the $33.9 million in the fourth quarter 2009, or a 42.2 percent decline.
For the year gross margin decreased to $80.3 million from $101.5 million in 2009, a 20.8 percent drop.
The company's net loss for the fourth quarter of 2010 was $1 million, compared to $5.8 million net profit for the same period in 2009.
The company ended the year with $4 million in cash, no long-term debt and no borrowings under its credit facility.
GTSI Corp., of Herndon, Va., ranks No. 59 on Washington Technology’s 2010 Top 100 list of the largest federal government contractors.
David Hubler is the former print managing editor for GCN and senior editor for Washington Technology. He is freelance writer living in Annandale, Va.