ScanSource, Inc., the international distributor of AIDC (automatic identification and data capture), point of sale, communications, and physical security products for the reseller market, has announced complete financial results for its second quarter ended December 31, 2010.
Net Sales $684 million
Net income $21.6 million
“Our record results were primarily led by strong sales growth in our communications businesses worldwide and our International Bar Code and POS business,” said Mike Baur, CEO, ScanSource, Inc. “The surprising growth in these areas was driven by improving end market demand and market share gains.”
For the quarter ended December 31, 2010, net sales increased 25% to $684 million compared to $548 million for the quarter ended December 31, 2009. Operating income increased by 85% to $33.5 million from $18.1 million in the comparable prior year quarter. Net income increased 83% to $21.6 million for the quarter ended December 31, 2010 versus $11.8 million for the quarter ended December 31, 2009. The effective tax rate for the quarter held constant with the prior year quarter at 35.7%. Diluted earnings per share increased 82% to $0.80 in the current quarter compared to $0.44 in the prior year quarter.
In the quarter, the Company received proceeds from a legal settlement against a former service provider representing reimbursement of expenses incurred in prior periods of $3.1 million ($2.0 million after tax or $0.07 per diluted share). The amount was reflected as a reduction of selling, general and administrative expenses.
The Company announced its revenue forecast for the third quarter of fiscal 2011. ScanSource expects net revenues for the March 2011 quarter could range from $630 million to $650 million.