PC Connection sees record third quarter
‘Highest quarterly sales and net income in company history’
PC Connection posted record quarterly sales and profits in the report it filed last week with federal regulators.
Revenue for he Merrimack-based IT provider was up nearly 6.5 percent, to $680 million, in the third quarter ending Sept. 30. That resulted in a net income of $13 million, 49 cents per diluted share, also a 6.5 percent increase.
The results bring sales year-to-date to almost $1.9 billion, a 3.1 percent increase, with net income at $33.2 million, or $1.25 a share, 8.1 percent increase.
“We delivered the highest quarterly sales and net income in company history,” boasted CEO Tim McGrath in an earnings call transcribed by Seeking Alpha. “In all of our segments, we continue to help our customers navigate through an increasingly complex IT landscape. We've made significant investments in security, cloud services, data center, virtualization and converged infrastructure solutions, which are the categories that our customers are also investing in to solve their business challenges.”
The highest growth, up by a fifth, was in the company’s Large Account segment, which accounted to $243 million in revenue as a number of companies, particularly in the health care industry, hired PC Connection to revamp their IT systems.
Revenue from the Small and Medium-Sized Business segment – still the company’s largest – was up 5.6 percent, to $269 million. Public Sector segment revenue dropped 7.6 percent to $169 million, but that falloff came after a particularly strong third quarter in 2014, when revenue increased 21 percent.
Laptops and tablets sold big, with revenue 16 percent over last year, and now account for a quarter of the company’s sales.
“They want their workforce to be mobile,” said chief financial officer Joe Driscoll. “They want them to be log into the network wherever they are.”