Business
Connection (CNXN) Reports Fourth Quarter and Full Year 2020 Results
FOURTH QUARTER SUMMARY: Gross profit: $108.9 million, down 6.2% y/y Net income: $16.3 million, down 25.8% y/y Diluted EPS: $0.62, compared to $0.83 y/y FULL
About this update from Pc Connection, Inc.
[{"type":"text","content":"\nFOURTH QUARTER SUMMARY:\n\n\nGross profit: $108.9 million, down 6.2% y/y\n\n\nNet income: $16.3 million, down 25.8% y/y\n\n\nDiluted EPS: $0.62, compared to $0.83 y/y\n\n\nFULL YEAR SUMMARY:\n\n\nGross profit: $418.8 million, down 7.2% y/y\n\n\nNet income: $55.8 million, down 32.1% y/y\n\n\nDiluted EPS: $2.12, compared to $3.10 y/y\n\n\nCash balance: $95.7 million\n\n\n MERRIMACK, N.H.--(BUSINESS WIRE)--\nConnection (PC Connection, Inc.; NASDAQ: CNXN), a leading information technology solutions provider to business, government, and education markets, today announced results for the fourth quarter and year ended December 31, 2020.\n\n“Our Q4 performance reflected the continued recovery trend in business conditions that we began to see very late in Q2,” said Tim McGrath, President and CEO of Connection. “Our year-over-year revenue growth in our Business and Public Sector Solutions segments was offset by a decline in Enterprise Solutions, which had a strong Q4 2019. We believe current momentum will continue in the months ahead. There was solid demand in mobility, security, software, and managed services. In Q4, we experienced greater than 20% growth in both SLED and our manufacturing vertical market.”\n\nMcGrath continued, “The pandemic had a significant impact on our business in 2020. Our people rose to the occasion and worked tirelessly through the year under difficult conditions to help our customers succeed. We are optimistic about 2021 and look forward to continuing to deliver the value-added services and products that enable our customers to transform their businesses.”\n\nNet sales for the quarter ended December 31, 2020 decreased by 5.7% to $675.7 million, compared to $716.6 million for the prior year quarter. The reduction in revenue year over year is primarily due to the continuing impact of the COVID-19 pandemic in Enterprise and supply chain constraints. Net income for the quarter ended December 31, 2020 decreased by 25.8% to $16.3 million, or $0.62 per diluted share, compared to net income of $22.0 million, or $0.83 per diluted share, for the prior year quarter.\n\nNet sales for the year ended December 31, 2020 decreased by 8.1% to $2.6 billion, compared to $2.8 billion for the year ended December 31, 2019. Net income for the year ended December 31, 2020 decreased by 32.1% to $55.8 million, or $2.12 per diluted share...