ScanSource Reports Positive 4Q Earnings
ScanSource execs attribute video surveillance sales in North America as key driver of the distributor’s Worldwide Barcode Networking and Security segment.
GREENVILLE, S.C. — Global wholesale technology distributor ScanSource (Nasdaq: SCSC) reported a profit for its fourth quarter that advanced from last year. The company, based here, said its bottom line came in at $17.3 million or 68 cents earnings per share, compared to $13.1 million and 51 cents EPS in same period last year.
The performance was is in line with analysts’ expectations of 68 cents EPS, according figures compiled by Thomson Reuters. Analysts’ estimates typically exclude special items. The company said revenue for the quarter rose 4.5% to $917.3 million, up from $877.5 million last year.
ScanSource has two reporting segments: Worldwide Barcode Networking and Security, which represents 68% of overall sales, and Worldwide Communications and Services. In the fourth quarter, the Worldwide Barcode Networking and Security segmented posted net sales of $619 million, a 7% increase from the prior year or 6% on an organic basis. This marked the second consecutive quarter of organic growth for the segment, which the company said was driven by its North America business.
“In North America, our strong results were led by healthy market demand from mobile computing, retail, networking and video surveillance solutions. It was a great quarter across key customer segments, big deals, run rate business and our federal government business,” ScanSource CEO Mike Baur said during an earning’s call with analysts Tuesday.
The Worldwide Communications and Services segment, which represents 32% of overall sales, posted net sales of $298 million during the fourth quarter for a 1% increase from a year ago or down 3% on an organic basis.
“As we look at our traditional telecom business with market uncertainty surrounding Avaya’s bankruptcy, not surprisingly net sales declined, particularly, for our large enterprise business customers as they report to us that end users are delaying the upgrading and expansion decisions,” Baur explained.
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