PC Connection nets $9m in 2Q
The Merrimack-based company sold some $557 million of computer equipment and software in the second quarter of 2013
PC Connection’s small market business and health care business boosted both its sales and profits last quarter. The Merrimack-based company sold some $557 million of computer equipment and software in the second quarter of 2013 ending on June 30, a 2.7 percent increase compared to the second quarter of 2012. That resulted in a net income of $9.2 million, or 35 cents a share, two pennies more than the comparable quarter.
Year to date, the company topped a billion in sales, resulting in a profit of $15.3 million or 58 cents a share, again a slight increase over last year.
Information technology sales to large companies were flat last year, but the small business/home business market was up 5.5 percent, and net sales to health care customers increased by 25 percent.
Sequestration drove down federal government sales by 22 percent, but state and local government sales were 11.3 percent, so overall there was a 2.15 percent increase of public sector sales.
In terms of products, notebooks and tablets were off slightly, desktop and servers were flat but software was up 7 percent and networking products were up 8 percent.
PC Connection’s cash position has improved by some $24 million, to $64 million. That’s primarily because it used less cash to borrow and pay debt than it had in the first half of 2012.
“I am pleased with our results this quarter,” said Timothy McGrath, CEO and president. “We increased revenues, gross margin, operating margin, and earnings per share in a challenging environment.”