Ludiso,

GTSI always has a good Q3 (it offsets the weak Q1 & Q2) . Q3 also is profitable but sometimes is not sufficient to offset the losses from the first half of the year. Q4 is what really saves the company and hopefully will result in another year of profitability.

However, there are some disturbing trends. First, Gross Margin is off - in 2006 it was 13.6% but in 2009 has averaged 12.5%. For 2008 vs. 2009 the Gross Margin is worse this year ($2,128) vs. 2008. Also, the loss from operations ($8,608) is 9.1% worse from 2008. So things are not trending in the right direction thus far this year vs. last. Fortunately, expense management has been better this year with a 2.9% improvement.

TLM success (much hyped on past conference calls) has not materialized. Revenue from Services and Financing have not improved this year vs. last year.

Government spending has been huge but the numbers thus far do not show that GTSI has effectively captured this spending. Company rankings by FCW, Government Executive and Washington Technology all show GTSI’s decline relative to other Government contractors.

Hopefully Thursday’s call will show increased sales in all three areas, better margins, and continued expense management.

If not then it begs the question what have the Leto's been doing these last 3.5+ years?