Posts net loss of $2.7m
GTSI, an IT hardware and software offerings provider, has reported revenue of $70.3m for the first quarter of 2011, a decrease of 30.9% compared to $101.8m for the same quarter previous year.
The company’s gross margin for the three months ended 31 March 2011, decreased to $13.0m from $13.5m, or 3.9%, from the same period in 2010.
For the first quarter of 2011, the company’s operating expenses were $18.3m, a decrease of 17.6% compared to $22.2m, driven primarily by strategic actions taken before October 2010 and high turnover since October 2010.
Net loss for the first quarter of 2011 was $2.7m, compared to a net loss of $4.6m for the same period in 2010. Diluted loss per share was $0.28 per share for the first quarter of 2011 compared to diluted loss per share of $0.48 per diluted share for the first quarter of 2010.
As of 31 March 2011, GTSI had stockholders’ equity of $93.3m or $9.68 per diluted share.
GTSI chief executive officer and president Sterling Phillips said the company’s first quarter is historically their slowest and reported revenue also reflects the lingering impact of the Small Business Administration (SBA) suspension in October, combined with the failure of Congress to pass a 2011 budget prior to April.
"The business has stabilised following the SBA action and first quarter results show a 42% improvement in the year-over-year net loss," Phillips said.