<PAGE>

================================================================================

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, DC 20549


                                    FORM 10-Q


               QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF
                       THE SECURITIES EXCHANGE ACT OF 1934


                FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2001

                           COMMISSION FILE NO. 0-19394

                                   GTSI CORP.
             (Exact name of registrant as specified in its charter)


           DELAWARE                                          54-1248422
 (State or other jurisdiction of                           (I.R.S. Employer
 incorporation or organization)                         Identification Number)


                            3901 STONECROFT BOULEVARD
                            CHANTILLY, VA 20151-1010

              (Address and zip code of principal executive offices)

                                  703-502-2000
              (Registrant's telephone number, including area code)


         Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. YES |X| NO |_|

         Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date:

               Class                     Shares Outstanding at November 1, 2001
----------------------------------      ----------------------------------------
  Common Stock, $0.005 par value                        8,146,905

================================================================================

<PAGE>

<TABLE>
<CAPTION>

                            GTSI CORP. AND SUBSIDIARY

      QUARTERLY REPORT ON FORM 10-Q FOR THE PERIOD ENDED SEPTEMBER 30, 2001


TABLE OF CONTENTS                                                                                               PAGE
-----------------                                                                                               ----
<S>                                                                                                             <C>
COVER PAGE.........................................................................................................1

TABLE OF CONTENTS..................................................................................................2

PART I - FINANCIAL INFORMATION

       ITEM 1.    FINANCIAL STATEMENTS -

                  Consolidated Balance Sheets as of
                      September 30, 2001 and December 31, 2000.....................................................3

                  Consolidated Statements of Operations for the
                      Three Months and Nine Months Ended September 30, 2001 and 2000...............................4

                  Consolidated Condensed Statements of Cash Flows for the
                      Nine Months Ended September 30, 2001 and 2000................................................5

                  Notes to Consolidated Condensed Financial Statements.............................................6

       ITEM 2.    MANAGEMENT'S DISCUSSION & ANALYSIS OF FINANCIAL
                      CONDITION AND RESULTS OF OPERATIONS..........................................................9

       ITEM 3.    QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK......................................14


PART II - OTHER INFORMATION.......................................................................................15

       ITEM 1.    LEGAL PROCEEDINGS
       ITEM 2.    CHANGES IN SECURITIES AND USE OF PROCEEDS
       ITEM 3.    DEFAULTS UPON SENIOR SECURITIES
       ITEM 4.    OTHER INFORMATION
       ITEM 5.    EXHIBITS AND REPORTS ON FORM 8-K


SIGNATURES........................................................................................................16
</TABLE>

                                      -2-
<PAGE>

<TABLE>
<CAPTION>
                            GTSI CORP. AND SUBSIDIARY
                           CONSOLIDATED BALANCE SHEETS
                        (In thousands, except share data)
                                   (Unaudited)
                                                                                       SEPTEMBER 30,     DECEMBER 31,
                                                                                           2001              2000
                                                                                     ----------------- ----------------
<S>                                                                                         <C>              <C>
ASSETS
Current assets:
     Cash                                                                                   $      137       $       79
     Accounts receivable, net                                                                  135,812          137,181
     Merchandise inventories                                                                   105,518           53,570
     Other current assets                                                                       26,378           18,269
                                                                                     ----------------- ----------------
                    Total current assets                                                       267,845          209,099
Property and equipment, net                                                                     12,076           12,830
Other assets                                                                                    18,995            5,136
                                                                                     ----------------- ----------------
                    Total assets                                                            $  298,916       $  227,065
                                                                                     ================= ================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
     Notes payable to banks                                                                 $   16,524       $   11,925
     Note payable, current
                                                                                                     -              500
     Accounts payable                                                                          204,997          134,071
     Accrued liabilities                                                                         7,591           10,249
     Accrued warranty liabilities                                                                6,621            8,695
                                                                                     ----------------- ----------------
                    Total current liabilities                                                  235,733          165,440
Notes payable, net of current portion                                                                -            1,000
Other liabilities                                                                                5,030            2,145
                                                                                     ----------------- ----------------
                    Total liabilities                                                          240,763          168,585
                                                                                     ----------------- ----------------
Stockholders' equity
     Prefered Stock - $0.25 par value, 680,850 shares authorized; none issued or
     outstanding at September 30, 2001 and December 31, 2000                                         -                -
     Common stock - $0.005 par value 20,000,000 shares authorized 9,806,084
     issued and 8,146,905 outstanding at September 30, 2001; and 20,000,000
     shares authorized, 9,806,084 issued and 7,956,272 outstanding at December
     31, 2000                                                                                       49               49
     Capital in excess of par value                                                             43,245           43,484
     Retained earnings                                                                          22,413           22,933
     Treasury stock, 1,659,179 shares at September 30, 2001 and 1,849,812
     shares at December 31, 2000, at cost                                                       (7,554)          (7,986)
                                                                                     ----------------- ----------------
                    Total stockholders' equity
                                                                                                58,153           58,480
                                                                                     ----------------- ----------------
                    Total liabilities and stockholders' equity                              $  298,916       $  227,065
                                                                                     ================= ================

          The accompanying notes are an integral part of these consolidated condensed financial statements.

</TABLE>
                                      -3-

<PAGE>

<TABLE>
<CAPTION>

                            GTSI CORP. AND SUBSIDIARY
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (Unaudited)
                      (In thousands, except share data)


                                                    THREE MONTHS ENDED                         NINE MONTHS ENDED
                                                      SEPTEMBER 30,                              SEPTEMBER 30,
                                                 2001                 2000                  2001                 2000
                                      -------------------------------------------------------------------------------------
<S>                                        <C>                     <C>                   <C>                  <C>
Sales                                      $    203,077            $  185,246            $  503,455           $  442,847
Cost of sales                                   186,899               168,391               461,672              404,285
                                      -------------------------------------------------------------------------------------
Gross margin                                     16,178                16,855                41,783               38,562
Operating expenses                               14,853                13,740                45,908               37,811
                                      -------------------------------------------------------------------------------------
Income (loss) from operations                     1,325                 3,115                (4,125)                 751
                                      -------------------------------------------------------------------------------------
          Interest income                        (2,036)               (1,114)               (3,675)              (2,566)
          Interest expense                           91                    65                   396                  624
                                      -------------------------------------------------------------------------------------
Interest income, net                             (1,945)               (1,049)               (3,279)              (1,942)
                                      -------------------------------------------------------------------------------------
Income (loss) before income                       3,270                 4,164                  (846)               2,693
taxes and cumulative effect
of SAB No. 101 adoption
Income tax provision (benefit)                    1,260                     -                  (326)                   -
                                      -------------------------------------------------------------------------------------
Net income (loss) before                          2,010                 4,164                  (520)               2,693
cumulative effect of SAB No.
101 adoption
Cumulative effect of SAB No.
101 adoption                                          -                     -                     -                  467
                                      -------------------------------------------------------------------------------------
Net loss                                   $      2,010            $    4,164            $     (520)          $    2,226
                                      =====================================================================================

Basic net income (loss) per
share before cumulative
effect of SAB No. 101 adoption             $       0.24            $     0.45            $    (0.06)          $     0.29
                                      =====================================================================================
Diluted net income (loss) per
share before cumulative
effect of SAB No. 101 adoption             $       0.22            $     0.45            $    (0.06)          $     0.28
                                      =====================================================================================

Basic net income (loss) per
share                                      $       0.24            $     0.45            $    (0.06)          $     0.24
                                      =====================================================================================
Diluted  net income (loss)
per share                                  $       0.22            $     0.45            $    (0.06)          $     0.23
                                      =====================================================================================

Weighted average shares outstanding
Basic                                             8,256                 9,256                 8,153                9,290
                                      =====================================================================================
Diluted                                           9,225                 9,305                 8,153                9,490
                                      =====================================================================================

          The accompanying notes are an integral part of these consolidated condensed financial statements.

</TABLE>
                                      -4-
<PAGE>

<TABLE>
<CAPTION>

                            GTSI CORP. AND SUBSIDIARY
                 CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
                                   (Unaudited)
                                 (In thousands)

                                                                                   NINE MONTHS ENDED
                                                                                     SEPTEMBER 30,
                                                                               2001                  2000
                                                                       -------------------------------------------
<S>                                                                        <C>                     <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)                                                          $     (520)             $    2,226
         Depreciation and amortization                                          3,285                   2,839
         Cumulative effect of SAB No. 101 adoption                                  -                     467
         Adjustments to reconcile net (loss) income to net cash
         provided by (used in) operating activities:                           (3,470)                 11,949
                                                                       ---------------------- --------------------
Net cash provided by (used in) operating activities:                             (705)                 17,481
                                                                       ---------------------- --------------------

CASH FLOWS FROM INVESTING ACTIVITIES:
          Cost of property and equipment                                       (2,530)                 (7,565)
                                                                       ---------------------- --------------------
Net cash used in investing activities                                          (2,530)                 (7,565)
                                                                       ---------------------- --------------------

CASH FLOWS FROM FINANCING ACTIVITIES:
         (Payments of) proceeds from bank notes, net                            4,599                  (9,479)
          Payments of note payable                                             (1,500)                   (500)
          Proceeds from exercises of stock options                              1,593                     531
          Purchase of treasury stock                                           (1,399)                   (532)
                                                                       ---------------------- --------------------
Net cash (used in) provided by financing activities                             3,293                  (9,980)
                                                                       ---------------------- --------------------

Net decrease in cash                                                               58                     (64)
Cash at beginning of period                                                        79                     149
                                                                       ---------------------- --------------------
Cash at end of period                                                      $      137              $       85
                                                                       ====================== ====================

Supplemental disclosures of cash flow information:
          Cash paid during the year for:
                    Interest                                               $      566              $      840
                    Income taxes                                           $        -              $        -



          The accompanying notes are an integral part of these consolidated condensed financial statements.

</TABLE>
                                      -5-
<PAGE>

                            GTSI CORP. AND SUBSIDIARY
              NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
                                   (Unaudited)

1.   BASIS OF PRESENTATION

         The accompanying unaudited, consolidated financial statements of GTSI
Corp. ("GTSI" or the "Company") have been prepared pursuant to the rules and
regulations of the Securities and Exchange Commission ("SEC") and, therefore,
omit or condense certain footnotes and other information normally included in
financial statements prepared in accordance with generally accepted accounting
principles. This report should be read in conjunction with the audited
financials for the year ended December 31, 2000 and the accompanying Notes to
the Financial Statements, contained in the Company's 2000 Annual Report on Form
10-K. In the opinion of Management, all adjustments, consisting primarily of
normal recurring adjustments, necessary for a fair presentation of interim
period results have been made. The interim results reflected in the consolidated
financial statements are not necessarily indicative of results expected for the
full year, or future periods.

         NEW ACCOUNTING PRONOUNCEMENTS.

         In December 1999, the SEC issued Staff Accounting Bulletin ("SAB") No.
101, "Revenue Recognition in Financial Statements." SAB No. 101 provides
guidance on the application of generally accepted accounting principles to
revenue recognition issues in financial statements. SAB No. 101 clarifies the
appropriate timing of revenue recognition when products are shipped to
customers. The impact to the Company of the adoption of SAB No. 101 is to defer
generally the recognition of revenue from two to seven days as compared to the
Company's previous method. During the fourth quarter of 2000, the Company
adopted the provisions of SAB No. 101 retroactive to January 1, 2000. The
Company implemented the guidance set forth in SAB No. 101 by recording a charge
to income of $467,000 representing the cumulative effect of adopting SAB No. 101
on January 1, 2000.

         The Emerging Issues Task Force ("EITF") has issued EITF Issue No.
99-19, "Reporting Revenue Gross as a Principal versus Net as an Agent."
Consistent with the requirements under SAB No. 101, EITF No. 99-19 provides
guidance regarding the income statement presentation of revenue based on either
(a) the gross amount billed to a customer because it has earned revenue from the
sale of the goods or services or (b) the net amount retained (that is, the
amount billed to a customer less the amount paid to a supplier) because it has
earned a commission or fee. During the fourth quarter of 2000, and on a
retroactive basis for all periods presented, the financial statements were
reclassified to reflect the provisions of EITF No. 99-19. Adoption of EITF No.
99-19 had no impact on our reported gross margin or net income, but merely
resulted in the reduction of previously reported sales and cost of sales for our
resold software maintenance agreements of approximately $3.6 million for the
quarter ended September 30, 2000, and $11.9 million for the nine months ended
September 30, 2000.

         In September 1998, the Financial Accounting Standards Board ("FASB")
issued SFAS No. 133, "Accounting for Derivative Instruments and Hedging
Activities." SFAS 133 requires the Company to record derivatives on the balance
sheet as assets or liabilities measured at fair value. SFAS No. 133 is effective
as of January 1, 2001. The adoption of SFAS No. 133 had no effect on the
Company's financial statements.

                                      -6-
<PAGE>

2.   NOTES PAYABLE TO BANKS

         On May 2, 1996, the Company executed a three-year credit facility with
a bank (the "Principal Lender") for $40.0 million and a one-year credit facility
with the other lenders (collectively, the "Lenders") for an additional $55.0
million (collectively, the "Credit Facility"). Additionally, on June 27, 1996,
the Company executed a separate $10.0 million facility with the Principal Lender
for inventory financing of vendor products (the "Wholesale Financing Facility").

         On July 28, 1997, the Company and its banks executed the Second Amended
and Restated Business Credit and Security Agreement (the "Credit Agreement") to
modify some of the terms and conditions, as well as the amounts available under
the Credit Facility and the Wholesale Financing Facility. These modifications
included the revision of the Credit Facility's term to one year with a one year
automatic renewal.

         On March 31, 1999, the Credit Agreement of July 28, 1997 was amended
to make the Tangible Net Worth requirement for the Company an amount no less
than $40 million at all times beginning the calendar quarter ending March 31,
1999 and each calendar quarter thereafter. All other material terms of the
Credit Agreement remained the same.

         On November 24, 1999, the Company and its banks executed separate
amendments, effective December 1, 1999, for the continuation of the Credit
Agreement through November 30, 2000 with an automatic one year renewal, and
adjusting, among other things, the seasonality of the amount available under the
Credit Facility. The limit of the Credit Facility is $50 million during the
period July 1 through January 31. During the period February 1 through April 30,
the total amount available under the Credit Facility is limited to $30 million.
During the period May 1 though June 30, the total amount available under the
Credit Facility is $20 million. In addition, the interest rate under the Credit
Facility is a rate of the London Interbank Offered Rate (LIBOR) plus 1.75
percentage points. The Wholesale Financing Facility was also amended effective
December 1, 1999 to $50.0 million throughout the fiscal year.

         On November 17, 2000, the Company and its banks executed an amendment,
effective December 1, 2000, for the continuation of the Credit Agreement with a
90-day written termination notice upon receipt by either party and, among other
things, increased the Company's Stock Repurchase authorization from third-party
stockholders to $6.1 million, up from $5.25 million in the previous Amendment.
All other material terms of the Credit Agreement remained the same.

         On February 28, 2001, the Company and its banks executed an amendment,
for the establishment of a reserve to facilitate certain payments to its vendors
via Automated Clearing House "ACH" transfers. The amendment also increased the
Company's Stock Repurchase authorization from third-party stockholders by an
additional $4.7 million, notwithstanding the $6.1 million previously authorized
from the Fourth Amendment dated November 17, 2000.

         On March 13, 2001, the Wholesale Financing Facility was amended to
$35.0 million throughout the fiscal year.

         Borrowing is limited to 85% of eligible accounts receivable. The Credit
Facility is secured by substantially all of the operating assets of the Company.
Current obligations are first funded and then all cash receipts are
automatically applied to reduce outstanding borrowings. The Credit Facility also
contains certain covenants that include restrictions on the payment of dividends
and the repurchase of the Company's Common Stock, as well as provisions
specifying compliance with certain quarterly and annual financial statistical
ratios. At September 30, 2001, the Company was in compliance with all financial
covenants set forth in the Credit Facility.

                                      -7-
<PAGE>

3.   PROPERTIES

         The Company's executive offices are located in an approximately 100,500
square foot facility in Chantilly, Virginia under a lease expiring in November
2009, with one five-year option. GTSI's warehousing and distribution operations
are also located in Chantilly, Virginia in a separate 200,000 square foot
facility under a lease expiring in December 2006. The Company has a branch sales
office occupying 139 square meters in Mannheim, Germany. In addition, the
Company has branch sales offices in Calverton, Maryland, under a month to month
lease, beginning on March 14, 2001. The Company also leases a 20,000 square foot
distribution center in Chattanooga, Tennessee under a one-year renewable option,
exercised and effective April 1, 2001.

4.   COMMITMENTS AND CONTINGENCIES

         The Company is occasionally a defendant in litigation incidental to its
business. The Company believes that none of such litigation currently pending
against it, individually or in the aggregate, will have a material adverse
effect on the Company's financial condition or results of operations.

         As of September 30, 2001, the Company holds in its inventory
approximately $1.7 million of business intelligence software. Contractually, the
Company has exclusive rights to sell this business intelligence software to the
U.S. Department of Defense through December 31, 2001 and believes that it has a
commitment from the software vendor to extend this exclusivity. Management is
currently negotiating with the software vendor to formally extend this exclusive
resale arrangement and upgrade rights through December 31, 2002, but as yet has
not satisfactorily completed this negotiation. Through September 30, 2001, the
Company has made no sales of this product. At this time, however, management
believes that the Company will recover the cost of this inventory through sales
in the normal course of business. If management is unable to extend the sales
exclusivity or upgrade rights granted by the vendor, or is otherwise unable to
sell the software, this would result in an impairment of all or a portion of the
$1.7 million inventory balance. Management expects to complete its negotiation
with the software vendor during the fourth quarter of 2001 and will reassess its
conclusions related to inventory impairment at that point.

ITEM 2.   MANAGEMENT'S DISCUSSION & ANALYSIS OF FINANCIAL CONDITION
             AND RESULTS OF OPERATIONS

         The following discussion and analysis is provided to increase the
understanding of, and should be read in conjunction with, the Consolidated
Financial Statements and Notes thereto included elsewhere in this Report, as
well as the Company's consolidated financial statements and notes thereto
incorporated into its Annual Report on Form 10-K for the year ended December 31,
2000. Historical results and percentage relationships among any amounts in the
Consolidated Financial Statements are not necessarily indicative of trends in
operating results for any future period.

OVERVIEW

         GTSI Corp. is a leading business to Government marketer (B2G) of
microcomputer and Unix workstation hardware, software and networking products to
the Federal government market. The Company currently offers access to over
250,000 information technology products from more than 1,300 manufacturers. GTSI
also performs network integration services, including configuring, installing
and maintaining microcomputers in local area networks. The Company sells to
virtually all departments and agencies of the Government, many state governments
and several hundred systems integrators and prime contractors that sell to the
government market. GTSI offers its customers a

                                      -8-
<PAGE>

convenient and cost-effective centralized source for microcomputer and
workstation products through its competitive pricing, broad product selection
and procurement expertise. The Company provides its vendors with a low-cost
marketing and distribution channel to the millions of end users comprising the
government market, while virtually insulating these vendors from most of the
complex government procurement rules and regulations.

         Changes in sales throughout the Company's history have been
attributable to increased or decreased unit sales, to expansion of the Company's
product offerings; to the addition of new vendors; and to the addition or
expiration of sales contract vehicles (e.g., the addition of the SEWP III
Contract and the MMAD Contract, and the expiration of the SEWP II Contract). The
Company's financial results have fluctuated seasonally, and may continue to do
so in the future, because of the Government's buying patterns which have
historically favorably impacted the last two calendar quarters and adversely
affected the first two calendar quarters.

         The Company's business strategy is to continue to focus on higher-end
product-based solutions, to broaden its product offering, to remain a low-cost,
reliable provider of commodity products. The Company also focuses on bringing
new technologies to government customers.






                                      -9-
<PAGE>


RESULTS OF OPERATIONS

         The following table sets forth, for the periods indicated, the
percentages that selected items within the statement of operations bear to sales
and the annual percentage changes in the dollar amounts of such items.

<TABLE>
<CAPTION>

                                                                                                  PERCENTAGE
                                                                                                    CHANGE
                                                     PERCENTAGE OF SALES               ---------------------------------
                                        ----------------------------------------------     THREE             NINE
                                                                                           MONTHS           MONTHS
                                                THREE                   NINE               ENDED            ENDED
                                             MONTHS ENDED           MONTHS ENDED        SEPTEMBER 30,    SEPTEMBER 30,
                                            SEPTEMBER 30,          SEPTEMBER 30,          2000 TO         2000 TO
                                           2001        2000       2001        2000           2001            2000
                                        ---------------------- ------------------------ ---------------------------------
<S>                                     <C>         <C>         <C>         <C>             <C>             <C>
Sales                                     100.0%      100.0%      100.0%      100.0%          9.6%            13.7%
Cost of sales                              92.0        90.9        91.7        91.3          11.0%            14.2%
                                        ----------- ---------- ------------ -----------
Gross margin                                8.0         9.1         8.3         8.7          -4.0%             8.4%
                                        ----------- ---------- ------------ -----------
Operating expenses:
       Selling, general, and
          administrative                    6.8         6.9         8.5         7.9           7.2%            21.9%
       Depreciation and amortization        0.6         0.5         0.7         0.6          20.6%            15.7%
                                        ----------- ---------- ------------ -----------
Total operating expenses                    7.4         7.4         9.2         8.5           8.1%            21.4%
                                        ----------- ---------- ------------ -----------
Income (loss) from operations               0.6         1.7        (0.9)        0.2         -57.5%          -649.1%
Interest income, net                       (1.0)       (0.6)       (0.7)       (0.4)         85.4%            68.8%
                                        ----------- ---------- ------------ -----------
Income (loss)  before taxes                 1.6         2.3        (0.2)        0.6         -21.5%          -131.4%
Income tax provision (benefit)              0.6         0.0        (0.1)        0.0         100.0%           100.0%
                                        ----------- ---------- ------------ -----------
Net loss before cumulative effect of        1.0         2.3        (0.1)        0.6         -51.7%          -119.3%
SAB No. 101 adoption
Cumulative effect of SAB No. 101              -           -           -         0.1           0.0%          -100.0%
adoption
                                        ----------- ---------- ------------ -----------
Net income (loss)                           1.0         2.3        (0.1)        0.5         -51.7%          -123.3%
                                        =========== ========== ============ ===========

</TABLE>

                                      -10-
<PAGE>

         The following table sets forth, for the periods indicated, the
approximate sales by category, along with the related percentages of total
sales:

<TABLE>
<CAPTION>
                            Three months ended September 30,                  Nine months ended September 30,
                   ----------------------------------------------------------------------------------------------------
                             2001                     2000                     2001                    2000
                   ----------------------------------------------------------------------------------------------------
<S>                    <C>           <C>        <C>           <C>      <C>            <C>      <C>            <C>
GSA Schedules            $   76,885    37.8%      $   66,332    35.8%    $   138,748    27.6%    $   158,066    35.7%
IDIQ Contracts               80,375    39.6%          89,714    48.4%        251,257    49.9%        211,798    47.8%
Open Market                  28,339    14.0%          20,892    11.3%         75,407    15.0%         49,367    11.2%
Other Contracts              17,478     8.6%           8,309     4.5%         38,043     7.5%         23,616     5.3%
                   ----------------------------------------------------------------------------------------------------
  Total                  $  203,077   100.0%      $  185,247   100.0%    $   503,455   100.0%    $   442,847   100.0%
                   ====================================================================================================
</TABLE>

THREE MONTHS ENDED SEPTEMBER 30, 2001 COMPARED
WITH THE THREE MONTHS ENDED SEPTEMBER 30, 2000

         SALES. Sales consist of revenues from product shipments and services
rendered net of allowances for customer returns and credits. Revenues for the
third quarter of 2001 were $203.1 million, compared to $185.2 million in the
third quarter of 2000, or an increase of 9.6%.

         GROSS MARGIN. Gross margin is sales less cost of goods sold, which
includes product cost, freight, warranty maintenance cost and certain other
overhead expenses related to the cost of acquiring products. Gross margin
percentages vary over time and may change significantly depending on the mix of
customer's use of available contract vehicle and the mix of product sold. Gross
margin in the current quarter decreased by 1.1 percentage points to 8.0%,
compared to a gross margin of 9.1% in the third quarter of 2000. The decrease in
gross margin percentage reflects a combination of tighter contract margins over
those recorded in the third quarter of 2000 and a shift in the mix of contracts
to lower margin contracts.

         OPERATING EXPENSES. Total operating expenses for the three months ended
September 30, 2001 increased $1.1 million, or 8.1%, from the same period in
2000. The increase in operating expenses primarily resulted from increased
personnel costs to achieve increased sales for the second half of 2001 and
beyond. Expressed as a percentage of total sales, total operating expenses was
unchanged at 7.4% compared to the same period in 2000.

         INTEREST INCOME. Net interest income in the third quarter of 2001
increased to $1.9 million compared to $1.0 million in the same period in 2000
due primarily to an increase in prompt payment discounts relating to strategic
inventory purchases.

         INCOME TAX. The Company recorded a tax provision of $1.3 million for
the third quarter of 2001 based on the effective rate of approximately 39%. No
provision for income tax had been recognized with respect to the Company's
income from operations for the third quarter of 2000 due to the reversal of tax
valuation allowance that fully offset the Company's current tax expenses for the
third quarter of 2000.

                                      -11-

<PAGE>

NINE MONTHS ENDED SEPTEMBER 30, 2001 COMPARED
WITH THE NINE MONTHS ENDED SEPTEMBER 30, 2000

         SALES. In the nine-month period ended September 30, 2001, revenues grew
$60.6 million, or 13.7%, to $503.5 million, compared to $442.8 million in the
same period in 2000.

         GROSS MARGIN. Gross margin expressed as a percent of sales in the
nine-month period ended September 30, 2001 was 8.3%, down from a gross margin of
8.7% for the first nine months of 2000.

         OPERATING EXPENSES. Total operating expenses for the nine-month period
ended September 30, 2001 increased $8.1 million, or 21.4%, from the same period
in 2000. The increase in operating expenses primarily resulted from increased
personnel costs to support increased sales for the second half of 2001 and
beyond. Expressed as a percentage of total sales, total operating expenses
increased to 9.2% from 8.5% in the comparable period of 2000.

         INTEREST EXPENSE. Net interest income for the nine-month period ended
September 30, 2001 increased to $3.3 million compared to $1.9 million in the
same period in 2000 due primarily to a increase in prompt payment discounts
relating to strategic inventory purchases.

         INCOME TAX. The Company recorded a tax benefit of $326,000 for the
nine-month period ended September 30, 2001 based on the effective rate of
approximately 39%. No provision for income tax had been recognized with respect
to the Company's income from operations for the first nine-months of 2000 due to
the reversal of tax valuation allowance that fully offset the Company's current
tax expenses for the period.

EFFECT OF INFLATION

         The Company believes that inflation has not had a material effect on
its operations. However, if inflation increases in the future it could
temporarily adversely affect the profitability of GTSI's sales under its
Government fixed-price contracts, which generally preclude the Company from
passing on inflation-related or other increases in product costs to Government
customers during the term of a pre-existing contract. The Company mitigates this
risk in part by often obtaining agreements from certain of its suppliers
prohibiting them from increasing their prices to GTSI during fixed-price, term
contracts.

SEASONAL FLUCTUATIONS AND OTHER FACTORS

         The Company has historically experienced and expects to continue to
experience significant seasonal fluctuations in its operations as a result of
Government buying and funding patterns, which also impact the buying patterns of
GTSI's prime contractor customers. These buying and funding patterns
historically have had a significant positive effect on GTSI's bookings in the
third quarter ending September 30 each year (the Government's fiscal year end),
and consequently on sales and net income in the third and fourth quarters of
each year. Quarterly financial results are also affected by the timing of the
award of and shipments of products under government contracts, price competition
in the microcomputer and workstation industries, the addition of personnel or
other expenses in anticipation of sales growth, product line changes and
expansions, and the timing and costs of changes in customer and product mix. In
addition, customer order deferrals in anticipation of new product releases by
leading microcomputer and workstation hardware and software manufacturers,
delays in vendor shipments of new or existing products, a shift in sales mix to
more complex requirements contracts with more complex service costs, and vendor
delays in the processing of incentives and credits due GTSI, have occurred (all
of which are also likely to occur in the future) and have adversely affected the
Company's operating performance in particular periods. The seasonality and the
unpredictability of the factors affecting such seasonality make GTSI's quarterly
and yearly financial results difficult to predict and subject to significant
fluctuation. The Company's stock price could be adversely affected if any such
financial results fail to meet the financial community's expectations.

                                      -12-
<PAGE>

         Additionally, legislation is periodically introduced in Congress that
may change the Government's procurement practices. GTSI cannot predict whether
any legislative or regulatory proposals will be adopted or, if adopted, the
impact upon its operating results. Changes in the structure, composition and/or
buying patterns of the Government, either alone or in combination with
competitive conditions or other factors, could adversely affect future results.

         As of September 30, 2001, the Company holds in its inventory
approximately $1.7 million of business intelligence software. Contractually, the
Company has exclusive rights to sell this business intelligence software to the
U.S. Department of Defense through December 31, 2001 and believes that it has a
commitment from the software vendor to extend this exclusivity. Management is
currently negotiating with the software vendor to formally extend this exclusive
resale arrangement and upgrade rights through December 31, 2002, but as yet has
not satisfactorily completed this negotiation. Through September 30, 2001, the
Company has made no sales of this product. At this time, however, management
believes that the Company will recover the cost of this inventory through sales
in the normal course of business. If management is unable to extend the sales
exclusivity or upgrade rights granted by the vendor, or is otherwise unable to
sell the software, this would result in an impairment of all or a portion of the
$1.7 million inventory balance. Management expects to complete its negotiation
with the software vendor during the fourth quarter of 2001 and will reassess its
conclusions related to inventory impairment at that point.

         NEW ACCOUNTING PRONOUNCEMENTS.

         In December 1999, the Securities and Exchange Commission issued Staff
Accounting Bulletin ("SAB") No. 101, "Revenue Recognition in Financial
Statements." SAB No. 101 provides guidance on the application of generally
accepted accounting principles to revenue recognition issues in financial
statements. SAB No. 101 clarifies the appropriate timing of revenue recognition
when products are shipped to customers. The impact to the Company of the
adoption of SAB No. 101 is to generally defer the recognition of revenue from
two to seven days as compared to the Company's previous method. During the
fourth quarter of 2000, the Company adopted the provisions of SAB No. 101
retroactive to January 1, 2000. The Company implemented the guidance set forth
in SAB No. 101 by recording a charge to income of $467,000 representing the
cumulative effect of adopting SAB No. 101 on January 1, 2000.

         The Emerging Issues Task Force ("EITF") has issued EITF Issue No.
99-19, "Reporting Revenue Gross as a Principal versus Net as an Agent."
Consistent with the requirements under SAB No. 101, EITF No. 99-19 provides
guidance regarding the income statement presentation of revenue based on either
(a) the gross amount billed to a customer because it has earned revenue from the
sale of the goods or services or (b) the net amount retained (that is, the
amount billed to a customer less the amount paid to a supplier) because it has
earned a commission or fee. During the fourth quarter of 2000, and on a
retroactive basis for all periods presented, the financial statements were
reclassified to reflect the provisions of EITF No. 99-19. Adoption of EITF No.
99-19 had no impact on our reported gross margin or net income, but merely
results in the reduction of previously reported sales and cost of sales for our
resold software maintenance agreements of approximately $3.6 million for the
quarter ended September 30, 2000, and $11.9 million for the six months ended
September 30, 2000.

         In September 1998, the Financial Accounting Standards Board ("FASB")
issued SFAS No. 133, "Accounting for Derivative Instruments and Hedging
Activities." SFAS 133 requires the Company to record derivatives on the balance
sheet as assets or liabilities measured at fair value. SFAS No. 133 is effective
as of January 1, 2001. The adoption of SFAS No. 133 had no effect on the
Company's financial statements.

                                      -13-
<PAGE>

LIQUIDITY AND CAPITAL RESOURCES

         During the first nine months of 2001, the Company's operating
activities used $705,000 of cash flow, compared to $17.4 million of cash flow
provided by operating activities in the same period in 2000. The decrease in
cash flow relates primarily to the Company's increased inventory purchases in
the first nine months of 2001 versus the same period in 2000.

         Investing activities used cash of approximately $2.5 million during the
nine-month period ended September 30, 2001 compared to $7.5 million for the same
period in 2000 reflecting the strategic timing of the investment in the
Company's computers and software, including Customer Relationship Management
initiatives.

         During the nine-month period ended September 30, 2001, the Company's
financing activities provided cash of approximately $3.3 million, primarily
related to borrowings under the Company's Credit Facilities and payment against
a note payable. The Company also received $1.6 million from exercises of stock
options and purchased $1.4 million of treasury stock. At September 30, 2001 the
Company had $24.7 million available for borrowing under its credit facility.

         On May 2, 1996, the Company executed a three-year credit facility with
a bank (the "Principal Lender") for $40.0 million and a one-year credit facility
with the other lenders (collectively, the "Lenders") for an additional $55.0
million (collectively, the "Credit Facility"). Additionally, on June 27, 1996,
the Company executed a separate $10.0 million facility with the Principal Lender
for inventory financing of vendor products (the "Wholesale Financing Facility").

         On July 28, 1997, the Company and its banks executed the Second Amended
and Restated Business Credit and Security Agreement (the "Credit Agreement") to
modify some of the terms and conditions, as well as the amounts available under
the Credit Facility and the Wholesale Financing Facility. These modifications
included the revision of the Credit Facility's term to one year with a one year
automatic renewal.

         On, March 31, 1999, the Credit Agreement of July 28, 1997 was amended
to make the Tangible Net Worth requirement for the Company an amount no less
than $40 million at all times beginning the calendar quarter ending March 31,
1999 and each calendar quarter thereafter. All other material terms of the
Credit Agreement remained the same.

         On, November 24, 1999, the Company and its banks executed separate
amendments, effective December 1, 1999, for the continuation of the Credit
Agreement through November 30, 2000 with an automatic one year renewal, and
adjusting, among other things, the seasonality of the amount available under the
Credit Facility. The limit of the Credit Facility is $50 million during the
period July 1 through January 31. During the period February 1 through April 30,
the total amount available under the Credit Facility is limited to $30 million.
During the period May 1 though June 30, the total amount available under the
Credit Facility is $20 million. In addition, the interest rate under the Credit
Facility is a rate of the London Interbank Offered Rate (LIBOR) plus 1.75%. The
Wholesale Financing Facility was also amended effective December 1, 1999 to
$50.0 million throughout the fiscal year.

         On November 17, 2000, the Company and its banks executed an amendment,
effective December 1, 2000, for the continuation of the Credit Agreement with a
90-day written termination notice upon receipt by either party and, among other
things, increased the Company's Stock Repurchase authorization from third-party
stockholders to $6.1 million, up from $5.25 million in the previous Amendment.
All other material terms of the Credit Agreement remained the same.

         On February 28, 2001, the Company and its banks executed an amendment,
for the establishment of a reserve to facilitate certain payments to its vendors
via Automated Clearing House "ACH" transfers. The

                                      -14-
<PAGE>

amendment also increased the Company's Stock Repurchase authorization from
third-party stockholders by an additional $4.7 million, notwithstanding the $6.1
million previously authorized from the Fourth Amendment dated November 17, 2000.

         On March 13, 2001, the Wholesale Financing Facility was amended to
$35.0 million throughout the fiscal year.

         Borrowing is limited to 85% of eligible accounts receivable. The Credit
Facility is secured by substantially all of the operating assets of the Company.
Current obligations are first funded and then all cash receipts are
automatically applied to reduce outstanding borrowings. The Credit Facility also
contains certain covenants that include restrictions on the payment of dividends
and the repurchase of the Company's Common Stock, as well as provisions
specifying compliance with certain quarterly and annual financial statistical
ratios. At September 30, 2001, the Company was in compliance with all financial
covenants set forth in the Credit Facility.

         The Company anticipates that it will continue to rely primarily on
operating cash flow, bank loans and vendor credit to finance its operating cash
needs. The Company believes that such funds should be sufficient to satisfy the
Company's near term anticipated cash requirements for operations. Nonetheless,
the Company may seek additional sources of capital, including permanent
financing over a longer term at fixed rates, to finance its working capital
requirements. The Company believes that such capital sources will be available
to it on acceptable terms, if needed.


"SAFE HARBOR" STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF
1995

         This Form 10-Q, including certain documents incorporated herein by
reference, contains "forward-looking" statements that involve certain risks and
uncertainties. Actual results may differ materially from results express or
implied by such forward-looking statements, based on numerous factors. Such
factors include, but are not limited to, competition in the government markets,
buying patterns of the Company's customers, general economic and political
conditions, results of negotiations with the Company's lenders concerning a new
credit facility, changes in laws and government procurement regulations, and
other risks described in this Form 10-Q and in the Company's other SEC filings.
For these statements, the Company claims the protection of the safe harbor for
forward-looking statements under the Private Securities Litigation Reform Act of
1995.

ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

         Inapplicable.


                                      -15-
<PAGE>


                           PART II - OTHER INFORMATION

ITEM 1.   LEGAL PROCEEDINGS - Inapplicable.

ITEM 2.   CHANGES IN SECURITIES AND USE OF PROCEEDS - Inapplicable.

ITEM 3.   DEFAULTS UPON SENIOR SECURITIES - Inapplicable.

ITEM 4.   SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS - Inapplicable

ITEM 5.   OTHER INFORMATION - Inapplicable.

ITEM 6.   EXHIBITS AND REPORTS ON FORM 8-K

         (a)      REPORTS ON FORM 8-K:

                  None.


                                      -16-
<PAGE>

                                   SIGNATURES


         Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.



                          Date: November 15, 2001
                          GTSI CORP.



                          By: /s/ Dendy Young
                              --------------------------------------------------
                              Dendy Young
                              Chairman and Chief Executive Officer



                          By: /s/ Robert D. Russell
                              --------------------------------------------------
                              Robert D. Russell
                              Senior Vice President and Chief Financial Officer


                                      -17-