GTSI revenues fall
- By John Moore
- Oct 28, 2005
GTSI saw revenue and net income decline in its third quarter, but reported a spike in sales at the end of the government’s fiscal year.
The solution provider posted sales of $287.6 million in its third quarter, which ended at the same time as the government's fiscal year, Sept. 30. That was a 13 percent decline compared with last year’s third quarter sales of $330.6 million. Net income for the quarter declined 59.6 percent to $4.2 million, down from $10.5 million in the same period last year. The company reported diluted earnings per share of 44 cents, down from $1.13 last year.
GTSI experienced a surge in sales and bookings in September. September sales were $163.9 million compared with $156.2 million in September 2004. New bookings for September came in at $261.8 million, an 18.8 percent boost compared with September 2004. On Sept. 30, the last day of the government’s fiscal year, GTSI booked $59 million, according to the company.
In an effort to trim expenses, GTSI has reduced its workforce by 10 percent through layoffs and normal attrition. GTSI also aims to reduce costs by focusing sales activities on major vendors and solutions, noted Dendy Young, chairman and chief executive officer of GTSI.
GTSI has been grappling with a difficult internal enterprise resource planning implementation, which has slowed operations and put a crimp in sales. But Young pointed to the September uptick as evidence that government customers continue to rely on the company.