GTSI Hires New CEO

Dendy Young has stepped down as chief executive officer of Chantilly, Va.-based GTSI, according to the company. His successor is former Robbins-Gioia CEO Jim Leto. The announcement comes in the wake of internal business problems and financial hardship for the company.

Young will remain as chairman of the board for GTSI, but said in a prepared statement that the changes "are designed to strengthen the operating and governance structure" of the company. Prior to Robbins-Gioia, Leto served as chairman and CEO of science and technology firm PRC, and a variety of positions at AT&T, including vice president and general manager of the newly formed Federal Computer Systems Division. Sources inside the company said that the new CEO will bring valuable experience and innovative ideas to the table.

While neither Leto nor Dendy were available for comment, the management change could be the company's response to a rough year. GTSI recorded a $12 million loss in the first two quarters of 2005, thanks in part to a botched implementation of a PeopleSoft ERP infrastructure. In addition, the company added significant sales staff in an attempt to grow revenue, which didn't happen. The company laid off 90 people at the end of 2005, and an additional 80 earlier this week.

Additional details are expected to be made available when the company releases its financial results around March 7.