GTSI 1st quarter numbers show revenue up, losses down

GTSI Corp.’s first-quarter 2012 numbers indicate that the troubled government products and services company may have begun to reverse its recent fortunes -- a good sign as the company prepares to be sold to an affiliate of Unicom Systems for $76.6 million .

GTSI reported an 8.6 percent increase in total revenue for the first quarter of 2012, which ended March 31, to $76.4 million compared to $70.3 million for the first quarter of 2011.

Total gross margin for the first quarter of 2012 decreased $1.4 million to $11.6 million, a reduction of 11.0 percent, from the same period in 2011, according to the May 9 earnings statement.

Gross margin percent for the first quarter was 15.1 percent compared to 18.5 percent for the same quarter last year.

Operating expenses declined $3.2 million, or 17.8 percent, to $15.1 million compared to $18.3 million for the first quarter of 2011.

The resulting $3.5 million loss from operations is a $1.8 million improvement from the $5.3 million loss from operations reported for the first quarter of 2011.

Equity earnings from GTSI’s investment in Eyak Technology LLC declined $1.1 million as a result of the sale of our equity interest during the third quarter of 2011.

The net loss for the first quarter of 2012 was $2.5 million, an improvement compared to the net loss of $2.7 million for the same period in 2011.

Earnings per share improved $0.02 per share, or 6.5 percent, compared to the per share loss of $0.28 reported for Q1 2011.

“We are pleased with the year-over-year improvement in revenue and key profitability metrics. Our expanded sales force is showing results and the restructuring over the past year allows us to be more profitable,” said GTSI President and CEO Sterling Phillips in the announcement.

Within overall revenue growth, product revenue improved $1.2 million, services revenue improved $6.7 million and financing revenue declined $1.8 million.

The gross margin decline includes a product gross margin reduction of $2.3 million, a services gross margin increase of $2.1 million and a financing gross margin decline of $1.2 million.

Within operating expenses, salaries and related expenses declined $2.2 million and professional services expenses declined $0.9 million, a reflection of lower fees for lawyers and the monitor related to the SBA administrative agreement that lifted the company’s suspension from the fourth quarter 2010.

GTSI ended the first quarter with $63.3 million in cash on hand, 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.