GTSI Reports Nearly 20 Percent Growth In Sales Over '01

Yet CEO expresses concern about impact of potential war, DHS snafus

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GTSI Thursday reported a 19 percent jump in its annual revenue for 2002.

The federal solution provider, based here, reported annual sales of $934.7 million. Revenue for fiscal 2001 was $783.5 million. GTSI also reported net income of $9.5 million, or $1.04 per diluted share, an increase of 112 percent over the prior year's profit of $4.5 million.

CEO Dendy Young described "substantial improvement" in revenue and profit over the previous year but tempered his enthusiasm with caution about the ongoing budget dispute on Capitol Hill and uncertainty surrounding geopolitical situations, including a potential war with Iraq.

The continuing resolutions resulting from the budget impasse in Congress remain "an area of concern" for GTSI, as it impedes many GTSI clients from pulling the trigger on IT projects since they don't know how much money they'll have to work with, Young said.

Also, while GTSI already does business with each of the 22 separate agencies being folded into the Department of Homeland Security, there's some concern about delays affecting IT spending as decisions are made about the DHS' IT blueprint, he said.

GTSI's top vendor in terms of revenue generation continues to be Hewlett-Packard, with Panasonic, Microsoft, Cisco Systems and Sun Microsystems rounding out the top five. Each represents more than $100 million of GTSI's annual revenue.

While Young criticized HP's PartnerOne initiative last fall, saying it appeared that HP is emphasizing direct sales, he said Thursday that HP has been offering "more aggressive pricing" to GTSI.

In trading Thursday morning, GTSI's stock was down $1 to $10.95.

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