<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 MARCH 31, 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 May 1, 2001
-------------------------------------      -------------------------------------
    Common Stock, $0.005 par value                       8,110,481

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

<PAGE>

                            GTSI CORP. AND SUBSIDIARY

        Quarterly Report on Form 10-Q for the Period Ended March 31, 2001


TABLE OF CONTENTS                                                           PAGE

COVER PAGE.....................................................................1

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

PART I - FINANCIAL INFORMATION

       ITEM 1.    FINANCIAL STATEMENTS -

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

                  Consolidated Condensed Statements of Operations for the
                      Three Months Ended March 31, 2001 and 2000...............4

                  Consolidated Condensed Statements of Cash Flows for the
                      Three Months Ended March 31, 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


                                      -2-
<PAGE>


                                             GTSI CORP. AND SUBSIDIARY
                                            CONSOLIDATED BALANCE SHEETS
                                                    (Unaudited)
<TABLE>
<CAPTION>
                                                                                          MARCH 31,      DECEMBER 31,
(In thousands, except share data)                                                           2001             2000
                                                                                   ----------------------------------
<S>                                                                                   <C>              <C>
ASSETS
Current assets:
     Cash                                                                                $      40        $       79
     Accounts receivable, net                                                               93,145           137,181
     Merchandise inventories                                                                36,341            53,570
     Other current assets                                                                   23,749            18,269
                                                                                   ----------------------------------
                    Total current assets                                                   153,275           209,099
Property and equipment, net                                                                 12,067            12,830
Other assets                                                                                 6,040             5,136
                                                                                   ----------------------------------
                    Total assets                                                         $ 171,382        $  227,065
                                                                                   ==================================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
     Notes payable to banks                                                              $       -        $   11,925
     Note payable, current                                                                   1,000               500
     Accounts payable                                                                       94,383           134,071
     Accrued liabilities                                                                     8,711            10,249
     Accrued warranty liabilities                                                            7,263             8,695
                                                                                   ----------------------------------
                    Total current liabilities                                              111,357           165,440
Notes payable, net of current portion                                                            -             1,000
Other liabilities                                                                            2,149             2,145
                                                                                   ----------------------------------
                    Total liabilities                                                      113,506           168,585
                                                                                   ----------------------------------
Stockholders' equity
     Prefered Stock - $0.25 par value, 680,850 shares authorized; none issued or
     outstanding at March 31, 2001 and March 31, 2000
                                                                                                 -                 -
     Common stock - $0.005 par value 20,000,000 shares authorized 9,806,084
     issued and 8,110,481 outstanding at March 31, 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                                                    43,418            43,484
          Retained earnings                                                                 21,742            22,933
          Treasury stock, 1,695,603 shares at March 31, 2001 and
          1,849,812 shares at December 31, 2000, at cost                                   (7,333)            (7,986)
                                                                                   ----------------------------------
                    Total stockholders' equity                                              57,876            58,480
                                                                                   ----------------------------------
                    Total liabilities and stockholders' equity                           $ 171,382        $  227,065
                                                                                   ==================================

      The accompanying notes are an integral part of these consolidated financial statements.
</TABLE>


                                      -3-
<PAGE>

                            GTSI CORP. AND SUBSIDIARY
                      CONSOLIDATED STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
                                                                                                   THREE MONTHS ENDED
                                                                                                       MARCH 31,
(In thousands, except per share data)                                                           2001               2000
                                                                                         ----------------------------------------

<S>                                                                                       <C>                <C>
Sales                                                                                      $  149,288         $   121,133

Cost of sales                                                                                 136,523             111,964
                                                                                         ------------------ ---------------------
Gross margin                                                                                   12,765              9,169

Operating expenses                                                                             15,358             12,094
                                                                                         ------------------ ---------------------
Loss from operations                                                                           (2,593)            (2,925)
                                                                                         ------------------ ---------------------
          Interest and financing income                                                          (906)            (1,071)
          Interest expense                                                                        251                332
                                                                                         ------------------ ---------------------
Interest income, net                                                                             (655)              (739)
                                                                                         ------------------ ---------------------

Loss before income taxes and cumulative effect of SAB No. 101 adoption                         (1,938)            (2,186)

Income tax benefit                                                                               (747)                 -
                                                                                         ------------------ ---------------------
Net loss before cumulative effect of SAB No. 101 adoption                                      (1,191)            (2,186)

Cumulative effect of SAB No. 101 adoption                                                           -               (467)
                                                                                         ------------------ ---------------------

Net loss                                                                                    $  (1,191)          $ (2,653)
                                                                                         ================== =====================

Basic and diluted net loss per share before cumulative effect of SAB No. 101 adoption       $   (0.15)          $  (0.24)
                                                                                         ================== =====================

Basic and diluted net loss per share                                                        $   (0.15)          $  (0.29)
                                                                                         ================== =====================

Basic and diluted weighted shares outstanding                                                   8,042              9,281
                                                                                         ================== =====================

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

</TABLE>
                                      -4-
<PAGE>

                                            GTSI CORP. AND SUBSIDIARY

                                 CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
                                                                                  Three months ended
                                                                                      March 31,
(In thousands)                                                                2001                  2000
                                                                     ---------------------------------------------
<S>                                                                            <C>                   <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss                                                                       $    (1,191)          $    (2,653)
Adjustments to reconcile net loss to net cash
provided by (used in) operating activities
                                                                                     13,282               (8,909)
                                                                     ---------------------------------------------
Net cash provided by (used in) operating activities                                  12,091              (11,562)
                                                                     ---------------------------------------------

CASH FLOWS FROM INVESTING ACTIVITIES:
          Cost of property and equipment                                               (291)               (1,491)
                                                                     ---------------------------------------------
Net cash used in investing activities                                                  (291)               (1,491)
                                                                     ---------------------------------------------

CASH FLOWS FROM FINANCING ACTIVITIES:
         (Payments of) proceeds from bank notes, net                               (11,926)                13,097
          Payments of note payable                                                    (500)                  (500)
          Proceeds from exercises of stock options                                     587                    417
                                                                     ---------------------------------------------
Net cash (used in) provided by financing activities                                (11,839)                13,014
                                                                     ---------------------------------------------

Net decrease in cash                                                                   (39)                   (39)
Cash at beginning of period                                                             79                    149
                                                                     ---------------------------------------------
Cash at end of period                                                            $      40             $      110
                                                                     =============================================

Supplemental disclosures of cash flow information: Cash paid during the year
          for:
                    Interest                                                     $      458            $      528
                    Income taxes                                                 $    2,200            $        -

The accompanying notes are an integral part of these consolidated 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 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
resulted in the reduction of previously reported sales and cost of sales for our
resold software maintenance agreements of approximately $1.0 million for the
quarter ended March 31, 2000.

         In June 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.

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")

                                      -6-
<PAGE>

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.

         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 March 31, 2001, the Company was in compliance with all financial
covenants set forth in the Credit Facility.

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 also has a branch
sales office occupying 139 square meters in Mannheim, Germany. 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.


                                      -7-
<PAGE>

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.


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. ("GTSI" or the "Company") 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
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 (e.g., peripherals, microcomputers and networking and workstation
products, from 1985 through 1992); to the addition of new vendors (e.g., IBM,
Sun, Panasonic, Apple and Nexar, from 1988 through 1996, and Cisco in 1998); and
to the addition or expiration of sales contract vehicles (e.g., the addition of
the SEWP II Contract, the NIH ECS-II Contract, the TDA-1 Contract and STAMIS
Contract, and the expiration of the Companion Contract in 1995 and Desktop IV
systems ordering in 1996). 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.


                                      -8-

<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
                                                            PERCENTAGE OF SALES                         CHANGE
                                               -----------------------------------------------   ----------------------
                                                             THREE MONTHS ENDED                      THREE MONTHS
                                                                 MARCH 31,                               ENDED
                                               -----------------------------------------------         MARCH 31,
                                                       2001                     2000                 2001 TO 2000
                                               -----------------------------------------------   ----------------------
<S>                                                   <C>                      <C>                       <C>
Sales                                                 100.0%                   100.0%                    23.2%
Cost of sales                                          91.4                     92.4                     21.9%
                                               ----------------------   ----------------------
Gross margin                                            8.6                      7.6                     39.2%
                                               ----------------------   ----------------------
Operating expenses:
       Selling, general, and administrative             9.6                      9.3                     28.1%
       Depreciation and amortization                    0.7                      0.7                     14.1%
                                               ----------------------   ----------------------
Total operating expenses                               10.3                     10.0                     27.0%
                                               ----------------------   ----------------------
Loss from operations                                   (1.7)                    (2.4)                   -11.4%
Interest income, net                                   (0.4)                    (0.6)                   -11.4%
                                               ----------------------   ----------------------
Loss before taxes and cumulative effect of SAB         (1.3)                    (1.8)                   -11.3%
No. 101 adoption
Income tax benefit                                     (0.5)                     0.0                       -
                                               ----------------------   ----------------------
Net loss before cumulative effect of SAB No.           (0.8)                    (1.8)                   -45.5%
101 adoption
Cumulative effect of SAB No. 101 adoption              0.00                     (0.4)                   100.0%
                                               ----------------------   ----------------------
Net loss                                               (0.8)                    (2.2)                   -55.1%
</TABLE>

                                      -9-

<PAGE>

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

                                       Three months ended March 31,
                                        2001                    2000
                              ---------------------   ----------------------
GSA Schedules                 $ 25,858        17.3%   $ 40,417         33.4%
IDIQ Contracts                  91,967        61.6%     58,332         48.2%
Open Market                     22,983        15.4%     13,380         11.0%
Other Contracts                  8,480         5.7%      9,004          7.4%
                              ---------------------   ----------------------
  Total                       $149,288       100.0%   $121,133        100.0%
                              =====================   ======================

Three Months Ended March 31, 2001 Compared
With the Three Months Ended March 31, 2000

         Sales. Sales consist of revenues from product shipments and services
rendered net of allowances for customer returns and credits. Revenues for the
first quarter of 2001 were $149.3 million, compared to $121.1 million in the
first quarter of 2000, or an increase of 23.2%.

         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 increased by 1.0 percentage points to 8.6%,
compared to a gross margin of 7.6% in the first quarter of 2000. The increase in
gross margin percentage is primarily due to an increase in contract gross
margins.

         Operating Expenses. Total operating expenses for the three months ended
March 31, 2001 increased $3.3 million, or 27.0%, from the same period in 2000.
The increase in operating expenses primarily resulted from increased personnel
costs to support an increased emphasis on sales. Expressed as a percentage of
total sales, total operating expenses increased to 10.3% from 10.0% in the prior
period.

         Interest Expense. Net interest income in the third quarter of 2001
decreased to $655,000 compared to $739,000 in the same period in 2000 due
primarily to a decrease in prompt payment discounts relating to strategic
inventory purchases.

         Income Tax. The Company recorded a tax benefit of $747,000 for the
first quarter of 2001 based on the effective rate of approximately 39%. No
income tax benefit was recognized in the first quarter of 2000, as the Company
determined that certain net deferred assets did not satisfy the recognition
criteria set forth in the Statement of Financial Accounting Standards No. 109
"Accounting For Income Taxes."

                                      -10-
<PAGE>

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.

         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.

         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

                                      -11-
<PAGE>


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 $1.0 million for the quarter ended March 31, 2000.

In June 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.

Liquidity and Capital Resources

         During the first three months of 2001, the Company's operating
activities provided $12.1 million of cash flow, compared to the $11.6 million of
cash flow used in the same period in 2000. The increase in cash flow relates
primarily to the Company's decreased inventory purchases and faster receivables
collection in the first quarter of 2001 versus the same period in 2000 .

         Investing activities used cash of approximately $291,000 million during
the three months ended March 31, 2001 compared to $1.5 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 three months ended March 31, 2001, the Company's financing
activities used cash of approximately $11.8 million, primarily related to
increased borrowings under the Company's Credit Facilities and payment against a
note payable. At March 31, 2001 the Company had approximately $26.8 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

                                      -12-
<PAGE>

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.

         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 March 31, 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.

                                      -13-

<PAGE>

                           PART II - OTHER INFORMATION

ITEM 1.   LEGAL PROCEEDINGS

         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.

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

ITEM 3.   DEFAULTS UPON SENIOR SECURITIES - Inapplicable.

ITEM 4.   OTHER INFORMATION - Inapplicable.

ITEM 5.   EXHIBITS AND REPORTS ON FORM 8-K

         (a)      Reports on Form 8-K:

                  None.

                                      -14-
<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: May 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


                                      -15-