GTSI Reports 3Q Sales of $276.8 Million

GTSI

The federal systems integrator, based here, reported sales of $276.8 million. The company sold about 36 percent more IT products and services than in the year ago quarter.

The company continues to pare expenses, officials said. Net operating expenses in the third quarter declined to $18.4 million, or 6.7 percent of sales. In the same period last year, GTSI reported net operating expenses of $14.9 million, or 7.3 percent of sales.

"We watch those operating costs very carefully," said Quang Le, acting CFO and corporate controller.

Reminding financial analysts on a conference all this morning that GTSI is approaching $1 billion in annual revenue, CEO Dendy Young said fourth-quarter results are expected to look healthy.

"While there can be no assurances, we expect our [fourth-quarter 2002 results to meet or exceed the fourth quarter of 2001," Young said.

"The new bookings start to come in in early October, and they are an important contributor to the quarter," he said. "But the rest of October and November and December tends to be quieter. There is a period when our focus is on execution and shipping the backlog and collecting the cash that need to come in to support that revenue base."

GTSI's backlog as of Sept. 30 was $181.3 million, or 39 percent higher than that in the same period of 2001.

GTSI was trading Monday morning up slightly, to $11.08.