GTSI Provides Preliminary Results for 2007
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Significantly Narrows Loss and Materially Reduces Operating
Expenses
CHANTILLY, Va.--(Business Wire)--GTSI Corp. (NASDAQ:GTSI), an Enterprise IT infrastructure
solutions and services provider to government, today announced that
the Company is updating its 2007 financial expectations.
"While the Company expects a net loss for 2007, we believe such
loss will be significantly lower than last year. Although we
anticipated delivering net income for 2007, the federal government's
continuing resolution impacted our ability to meet our expectations,"
said Jim Leto, GTSI's Chief Executive Officer. "During the fourth
quarter, we had over $100 million in orders that we anticipated to
close in the quarter pushed into 2008; much of this amount was due to
federal funding constraints. President Bush signed the budget funding
bill in the final days of the quarter, and it is anticipated that a
normal funding flow will occur in the later portion of the first
quarter.
"For the first time in three years we expect to deliver
profitability for two consecutive quarters, the third and fourth
quarters of 2007," said Leto. "We believe the preliminary results of
the fourth quarter indicate that the strategic decision to move away
from commodity orders and into larger core technology product orders,
infrastructure solutions and professional & financial services
contracts, which have a longer sales cycle, is taking shape. In
addition to continuing to implement our plan on moving away from small
product sales, we will continue to focus on gaining efficiencies
throughout the organization. While we are pleased that we have
materially reduced operating expenses in 2007, we are going to
accelerate our efforts to reduce expenses in areas of the company
which focus on lower margin business, continue to improve automation,
as well as invest in our professional and financial services
capabilities."
The Company expects to release full fourth quarter and 2007
results in early March 2008 and hold a conference call on the day of
the release.
About GTSI Corp.
GTSI Corp. is an information technology solutions provider
offering a Technology Lifecycle Management (TLM) approach to IT
infrastructure solutions delivered through industry-leading
professional and financial services. GTSI employs a proactive,
strategic methodology that streamlines technology lifecycle
management, from initial assessment to acquisition, implementation,
refresh, and disposal. TLM allows government agencies to implement
solutions of national and local significance quickly and cost
effectively. GTSI's certified engineers and project managers leverage
strategic partnerships with technology innovators. These experts use
proven, repeatable processes to design, deploy, manage, and support
simple to complex solutions, to meet governments' current and future
requirements and business objectives. GTSI is headquartered in
Northern Virginia, outside of Washington, D.C. Further information
about the Company is available at www.GTSI.com/About.
Except for historical information, all of the statements,
expectations, beliefs and assumptions contained in the foregoing are
"forward-looking statements" (within the meaning of the Private
Securities Litigation Reform Act of 1995) that involve a number of
risks and uncertainties. It is possible that the assumptions made by
management -- including, but not limited to, those relating to
revenue, margins, operating results and net income, and the effect of
new contracts as well as new vendor relationships -- may not
materialize. Actual results may differ materially from those projected
or implied in any forward-looking statements. In addition to the above
factors, other important factors that could cause actual results to
differ materially are those listed in the Company's most recent report
on Form 10-K and included from time to time in other documents filed
by the Company with the Securities and Exchange Commission.
GTSI and GTSI.com are registered trademarks of GTSI Corp. in the
U.S. and other countries. All trade names are the property of their
respective owners.
GTSI Corp.
Paul Liberty
Vice President, Corporate Affairs & Investor Relations
703-502-2540
paul.liberty@gtsi.com
Copyright Business Wire 2008
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