GTSI revenues down 40 percent
- By David Hubler
- Aug 15, 2011
Despite what GTSI called significantly improved results compared to the second quarter of 2010, the company reported $81.3 million in revenue in the second quarter, compared to $135.0 million in the corresponding quarter a year ago.
That represents a 39.8 percent second-quarter revenue decline compared to the same quarter in 2010.
For the six months that ended June 30, GTSI reported revenue of $151.6 million compared to $236.9 million for the same period in 2010, a decline of 36 percent.
Gross margin for the second quarter of 2011 fell to $14.2 million from $17.4 million from the same period in 2010, a reduction of 18.9 percent.
Gross margin for the six months decreased $3.9 million to $27.1 million, or 12.3 percent when compared to the first six months of 2010.
But the bright spot is that the company's losses through the first six months of 2011 are smaller than the first six months of 2010.
"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," said Sterling Phillips, CEO and president, in the August 15 announcement. "We are working to improve the results of GTSI Operations by focusing on
higher gross margin business and reducing the cost of operations."
The loss from operations was $3.5 million in the second quarter, compared to $4.2 million in 2010. For the first six month of 2011, the loss was $8.8 million compared to $12.9 million in 2010.
"Second quarter results show an 18.5 percent reduction in loss from GTSI Operations compared to second quarter of 2010 and 31.2 percent reduction in loss for the first half of 2011 compared to the same period in 2010," Phillips said.
Gross margin percent for the second quarter was 17.4 percent compared to 12.9 percent for the same quarter last year.
Operating expenses declined $4 million, or 18.5 percent, to $17.6 million compared to $21.6 million for the second quarter of 2010, primarily because of the company's ongoing strategic cost reduction actions, first initiated in 2010, the statement said.
Earnings from GTSI’s investment in Eyak Technology LLC declined $1.1 million, or 46.2 percent, 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.
The company ended the quarter with $45.9 million in cash on hand. The company had no long-term debt and no borrowings under its credit facility.
GTSI Corp., of Herndon, Va., ranks No. 68 on Washington Technology’s 2011 Top 100 list of the largest federal government contractors.