Business
Connection (CNXN) Reports First Quarter 2025 Results
Announces a $50 Million Increase to the Share Repurchase Program FIRST QUARTER SUMMARY: Net sales: $701.0 million, increase of 10.9% y/y Gross profit: $127.3
About this update from Pc Connection, Inc.
[{"type":"text","content":"\nAnnounces a $50 Million Increase to the Share Repurchase Program\n\nFIRST QUARTER SUMMARY:\n\n\nNet sales: $701.0 million, increase of 10.9% y/y\n\n\nGross profit: $127.3 million, up 7.8% y/y\n\n\nGross margin: 18.2%, down 50 basis points y/y\n\n\nNet income: $13.5 million, increase of 2.5% y/y\n\n\nDiluted EPS: $0.51, compared to $0.50\n\n\nAdjusted Diluted EPS: $0.60, compared to $0.501\n\n\n MERRIMACK, N.H.--(BUSINESS WIRE)--\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, 2025. The Company also announced that its Board of Directors declared a quarterly dividend of $0.15 per share of the Company’s common stock. Payment will be made on May 30, 2025, to shareholders of record on May 13, 2025. The Board of Directors also approved a $50.0 million increase to Connection’s existing share repurchase program, bringing the aggregate amount authorized to $170 million, of which $50.5 million is available after giving effect to the increase.\n\n“During the first quarter of 2025, we saw strong demand as customers focused on operational efficiencies and productivity gains enabled by technology solutions. This led to double digit growth for digital workplace solutions – including mobility and desktops – as well as double-digit growth for datacenter modernization, spanning servers, storage, cloud, and software. These gains contributed to improved profitability resulting in 20% growth in adjusted earnings per share,” said Timothy McGrath, President and Chief Executive Officer of Connection.\n\nFirst Quarter of 2025 Results:\n\nNet sales for the quarter ended March 31, 2025 increased by 10.9%, year over year. Gross profit increased by 7.8% to $127.3 million, compared to $118.1 million, while gross margin decreased 50 basis points to 18.2%, compared to the prior year quarter. Net income increased by 2.5% to $13.5 million, or $0.51 per diluted share, compared to net income of $13.2 million, or $0.50 per diluted share, for the first quarter of 2024. Diluted Earnings per Share1 adjusted for the impact of severance expenses was $0.60 per share for the quarter ended March 31, 2025, compared to $0.50 per share for the quarter ended March 31, 2024.\n\nEarnings before interest, t...