Disgusting does not fully describe the abysmal performance from Leto and crew. Just look at the declines in all three areas (Product, Service, Financing) from last year. Fortunately expenses were down $3.7M but the company dropped $2.2M in income (29.8% drop) from last year. One need only look back (2006-2009) at the basics (i.e. Sales, Cost of Sales, Gorss Margin, Expenses, and Income/Loss form Operations) to see the ups and downs every year – just plot it and the chart shows no viable progress. It begs the question where is the leadership??? In 2008 they went into Q4 with a ($657K) Loss from Operations vs. 2009’s ($3.5M). If what Leto said about orders not being booked in Q3 but should hit in Q4 puts increased pressure to ship it by Dec 31 in order to recognize the revenue. Serious leadership will be needed to bring in the business, book it and ship it to get the negative $3.5M to a profit. Eyak helped GSTI be profitable in 2008 and its $500K this quarter helped so let’s see what Eyak can do to help in Q4.

In 2006 we see $570M in sales for the first nine months vs. $518M in 2009. The Fed. Govt is expanding year over year so why can’t GTSI capture some of this business? Every quarterly call we hear of deals moving to the next quarter but then the numbers never seem to reflect closure on these big deals. They hyped the new Service Manger but she can not turn Services around in less than 90 days. The whining of losing the 26 Reverse Auctions they registered does not cut it either. These type auctions have been around for years and GTSI leadership should have strategies to deal with them. As for other vendors doing the deal at zero margin, GTSI itself has done similar deals in the past to “get in the door.” If you lose this many deals, with a $15M margin at stake, it begs the question how strong are GTSI’s relationships with the suppliers for these registered deals?

Leto hyped lots of deals going Small Business. Many contract shops will go SDB/8(a) before they go SB. Again, look for Eyak (ANC) to bail GTSI Senior Management out.

GTSIbossman – your $20 a share hype from 19 August!!!???? What do you have to say for yourself and your Q3 and 2009 YTD performance? Your NTE $5M stock buy-back (only 398K shares purchased) has done next to nothing.

GTSI has great workers, great products, and has generated over $1B in sales in the past (granted expense management has been an issue). These last four years of “roller-coaster” performance (or lack thereof) begs the question – where is the leadership and why the lack of consistent and improving results?