ScanSource Third Quarter Results up 24%

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Distributor ScanSource has announced complete financial results for its third quarter ended March 31, 2011.

“The ScanSource team delivered excellent bottom line results despite lower than expected revenues,” said Mike Baur, CEO, ScanSource, Inc. “All of our geographies experienced stronger demand compared to last year, although we closed fewer large deals. A favourable combination of customer mix and product mix led to higher gross margins and very good earnings per share.”

For the quarter ended March 31, 2011, net sales increased 24% to $613.5 million compared to $496.1 million for the quarter ended March 31, 2010. Operating income increased by 34% to $25.5 million from $19.0 million in the comparable prior year quarter.

Net income increased 38% to $16.5 million for the quarter ended March 31, 2011 versus $12.0 million for the quarter ended March 31, 2010. The effective tax rate for the quarter decreased to 34% in the current quarter from 36.5% in the prior year quarter. Diluted earnings per share increased 33% to $0.60 in the current quarter compared to $0.45 in the prior year quarter.