Connection (CNXN) Reports First Quarter 2023 Results

About this update from Pc Connection, Inc.

[{"type":"text","content":" MERRIMACK, N.H.--(BUSINESS WIRE)--\nConnection (PC Connection, Inc.; NASDAQ: CNXN):\n\n\n\n\n \n\n\n\nFIRST QUARTER SUMMARY:\n\n\n\n\n\n\n\n\n\n\nNet sales: $727.5 million, down 7.7% y/y\n\n\n\nGross profit: $122.3 million, down 4.7% y/y\n\n\n\nNet income: $14.2 million, down 34.8% y/y\n\n\n\nDiluted EPS: $0.54, down 34.9% y/y\n\n\n\nAdjusted EPS: $0.56, down 31.9% y/y\n\n\n\n\n\n\n\n\nConnection (PC Connection, Inc.; NASDAQ: CNXN), a leading information technology solutions provider to business, government, healthcare and education markets, today announced results for the first quarter ended March 31, 2023. The company also announced that its board of directors has declared a quarterly dividend of $0.08 per share on the company’s common stock, which will be payable on June 2, 2023, to shareholders of record as of May 16, 2023.\n\n\n“During the quarter, the economic backdrop led our customers to exercise greater caution and selectivity with their short-term IT investment plans. Sales of endpoint devices were lower than anticipated across our customer base. While we saw good overall growth in software, security, and networking solutions, that led to record first quarter gross margin, it was not enough to offset the contraction in demand. We are confident our business strategy remains well aligned with the shifting dynamics of how our customers deploy, utilize, and consume technology,” said Timothy McGrath, President and Chief Executive Officer of Connection.\n\n\nNet sales for the quarter ended March 31, 2023 decreased by 7.7%, year over year. Gross profit decreased 4.7% while gross margin expanded 53 basis points to 16.8%, compared to the prior year quarter. Net income for the quarter ended March 31, 2023 decreased by 34.8% to $14.2 million, or $0.54 per diluted share, compared to net income of $21.8 million, or $0.83 per diluted share, for the prior year quarter. Earnings per share, adjusted for restructuring and other charges, decreased to $0.56 cents per share for the quarter ended March 31, 2023, compared to $0.83 cents per share for the prior year quarter.\n\n\nEarnings before interest, taxes, depreciation and amortization, adjusted for stock-based compensation expense and restructuring and other charges (“Adjusted EBITDA”) increased 1% to $130.0 million for the twelve months ended March 31, 2023, compared to $129.1 millio...

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