Connection (CNXN) Reports Second Quarter 2023 Results

About this update from Pc Connection, Inc.

[{"type":"text","content":"\nRecord Second Quarter Margin Performance; Industry Demand Remains Challenged\n\n\nSECOND QUARTER SUMMARY:\n\n\n\nNet sales: $733.5 million, down 11.5% y/y\n\n\n\nGross profit: $127.8 million, down 6.7% y/y\n\n\n\nNet income: $19.7 million, down 22.4% y/y\n\n\n\nDiluted EPS: $0.75, down 22.3% y/y\n\n\n\nAdjusted EPS: $0.80, down 17.2% y/y1\n\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 second quarter ended June 30, 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 September 1, 2023, to shareholders of record as of August 15, 2023.\n\n\n“We executed well against our strategic plans during the second quarter. We are successfully transitioning our business, driving growth in integrated technology solutions and services across each of our segments, resulting in a 90 basis point improvement in consolidated gross margin. While we are seeing a continuation of the challenging economic environment, we are confident that our business plans remain 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 June 30, 2023 decreased by 11.5%, year over year. Gross profit decreased 6.7% while gross margin expanded 90 basis points to 17.4%, compared to the prior year quarter. Net income for the quarter ended June 30, 2023 decreased by 22.4% to $19.7 million, or $0.75 per diluted share, compared to net income of $25.4 million, or $0.96 per diluted share, for the prior year quarter. Earnings per share, adjusted for restructuring and other charges (“Adjusted Diluted Earnings per Share”), decreased to $0.80 cents per share for the quarter ended June 30, 2023, compared to $0.96 cents per share for the prior year quarter.1\n\n\nNet sales for the six months ended June 30, 2023 decreased by 9.6%, compared to the six months ended June 30, 2022. Gross profit decreased 5.7% while gross margin expanded 71 basis points to 17.1%, compared to the six months ended June 30, 2022. Net income for the six mon...

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