850483--4/2/2007--GTSI_CORP

related topics
{system, service, information}
{product, market, service}
{acquisition, growth, future}
{customer, product, revenue}
{control, financial, internal}
{regulation, change, law}
{debt, indebtedness, cash}
{stock, price, operating}
{cost, operation, labor}
{financial, litigation, operation}
{regulation, government, change}
{cost, contract, operation}
We rely on a small number of large transactions for significant portions of our sales and gross margins, and our operating results and cash flows may decline significantly if we fail to secure additional large transactions. We continue to shift our business model from a reseller of products to a high-end solutions provider and this new model has certain risks, including increased competition, which may impact future results. Any issue that compromises our relationship with agencies of the U.S. Federal Government would cause serious harm to our business. Adverse changes in U.S. Federal Government fiscal spending could have a negative effect on our sales, gross margin, and cash flow. If we fail to comply with any material provision or covenant of our Credit Facility, we may not be able to continue to operate our business. Infrastructure failures could have a material adverse effect on our business. We have material weaknesses in our internal control over financial reporting which could have a material adverse effect on our business and a negative impact on our stock price. If we fail to align costs with our sales levels, net losses will continue. Compliance with changing regulations of corporate governance and public disclosure may result in additional expenses. Our quarterly sales, operating results and cash flows are volatile, which makes our future financial results difficult to forecast. Because we sometimes work with third parties, any failure by these third parties to satisfactorily perform their obligations could hurt our reputation, operating results and competitiveness. We may not qualify as a small business for new contract awards. Any potential future acquisitions, strategic investments or mergers may subject us to significant risks, any of which could harm our business.

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