PC Connection sees record sales, earnings
$2.5 billion in sales yield $47 million in profit
PC Connection certainly connected in the fourth quarter, with record sales and profits to complete a record-breaking 2015.
The Merrimack-based company said quarterly revenues were up 8.5 percent, to $684.3 million, resulting in a 14 percent in net income, to $13.6 million, or 51 cents a diluted share. For the year, the company posted sales of $2.57 billion, a 4.5 percent increase, with a profit of $46.8 million – $1.76 per share – a 9.7 percent increase.
Sales to large accounts led the way, up a whopping 22.8 percent, to $277 million, with software sales in that segment jumping 45 percent.
Part of that is due to significant sales in the health care market.
“The health care vertical was definitely a big winner for us in Q4,” said Joe Driscoll, company’s CFO, in a Thursday earnings call transcribed by Seeking Alpha.
The results validate the company’s decades-long shift from serving primarily individuals and small businesses to an IT firm that strives to provide larger companies with complex solutions.
PC Connection gave no guidance about next year, other than to say its goal is to beat the 3 percent growth rate projected for the industry by “taking share” in a consolidating market, said CEO Tim McGrath. He pointed to two technology drivers: the internet of things and 3D printing.