PC Connection reports slightly better 2012

PC Connection did better in 2012 than the year before, but not by much.

The Merrimack-based direct mail technology firm ended the year with net income of $33.1 million ($1.24 a share), less than $5 million more than it reported in 2011 — a tiny margin, given the company's $2.2 billion in sales, which were 2.6 percent above 2011.The last quarter of 2012 was flatter than the last quarter of 2011. Sales increased little more than half a percent compared to the prior year's quarter, to $556.2 million, resulting in a net profit of $8.9 million (33 cents a share) — about $1.5 million over the previous year.

Growth came not in consumer spending, but in spending by businesses, particularly larger businesses.

And while budget cuts slowed down government buying, PC Connection said that it gained market share, boosting overall sales to government entities by 9.1 percent.

Notebook sales rose 8.3 percent, and nearly accounted for a fifth of the company's revenue by the fourth quarter, while desktop sales declined 6.7 percent during the last quarter.

The company's expenses were relatively flat, but stock-based compensation increased from $824,000 to $1.5 million.

PC Connection does have more money in the bank, however. Cash and equivalents were up to nearly $40 million at the end of the year, compared to less than $5 million the year before, which raises the question: Is this just a buffer, or does the company have an acquisition in mind?