ScanSource Reports 2016 Q2 Results (Net Sales Up YOY)

ScanSource, Inc. (NASDAQ:SCSC), a leading global provider of technology products and solutions, today announced financial results for fiscal year 2016 second quarter ended December 31, 2015.

Quarter ended December 31,

2015

2014

Change

(in millions, except per share data)

Net sales

$

993.5

$

807.0

23

%

Operating income

31.9

26.0

23

%

Non-GAAP operating income(1)

36.3

29.4

24

%

GAAP net income

20.7

16.8

23

%

Non-GAAP net income(1)

23.7

19.7

20

%

GAAP diluted EPS

$

0.77

$

0.58

33

%

Non-GAAP diluted EPS(1)

$

0.88

$

0.68

29

%

(1) A reconciliation of non-GAAP financial information to GAAP financial information is presented in the following Supplementary Information (Unaudited) tables.

the following Supplementary Information (Unaudited) tables.

“Strong demand across our business led to record net sales and record non-GAAP EPS,” said Mike Baur, CEO, ScanSource, Inc.  “Sales exceeded our expectations due to large deals and excellent execution by our sales and support teams across the globe.”

Net sales for the quarter ended December 31, 2015 increased 23% year-over-year to $993.5 million. The increase in net sales includes the acquisitions of Network1 in January 2015 and KBZ in September 2015. Net sales in constant currency excluding acquisitions grew 5% year-over-year.

Operating income for the quarter ended December 31, 2015 totaled $31.9 million, compared with $26.0 million in the prior year quarter. Non-GAAP operating income of $36.3 million increased 24% year-over-year, and the non-GAAP operating margin increased to 3.7%.

On a GAAP basis, net income for the quarter ended December 31, 2015 totaled $20.7 million, or $0.77 per diluted share, compared with net income of $16.8 million, or $0.58 per diluted share, for the prior year quarter. Non-GAAP net income for the quarter ended December 31, 2015 of $23.7 million increased 20%, and non-GAAP diluted earnings per share of $0.88 increased 29% year-over-year.

Share Repurchase Update

During the quarter ended December 31, 2015, ScanSource repurchased approximately 0.8 million shares for an aggregate purchase price of approximately $29.6 million.  Under the Company’s $120 million share repurchase authorization through December 31, 2015, ScanSource has repurchased approximately 2.43 million shares for approximately $90.4 million, having executed 75% of the total authorization.

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