GREENVILLE, SC — June 18, 2007--ScanSource, Inc. (Nasdaq:SCSC), a leading international distributor of AIDC (automatic identification and data capture), point of sale, communications and electronic security products for the reseller market, today announced complete financial results for its first three quarters of fiscal year 2007.
The Company reported GAAP net income of $12.5 million, $8.8 million and $10.1 million for the September, December and March fiscal 2007 quarters, respectively. Net income for the September, 2006 quarter increased 38% versus restated results for the September, 2005 quarter, while net income for the December, 2006 quarter declined 2% and net income for the March, 2007 quarter increased 12% versus the corresponding restated prior periods. When adjusted to exclude third party legal and accounting costs of the Special Committee’s review of the Company’s stock option grant practices, net income for the December 2006 quarter increased 32% and net income for the March 2007 quarter increased 32% versus the restated prior year quarters.
“We are pleased with our financial results for the three quarters ended March 31, 2007,” said Mike Baur, President and CEO of ScanSource. “Our divisions have kept excellent focus on operating performance while we have completed our SEC filings.”
Concurrently with this release, the Company is filing with the SEC an amended annual report on Form 10-K/A for the fiscal year ended June 30, 2006 and quarterly reports on Form 10-Q for the quarters ended September 30, 2006, December 31, 2006, and March 31, 2007. The Company has restated its financial results for prior periods as a result of a review of the Company’s stock option grant practices by a Special Committee, consisting solely of independent directors. As part of the restatement process, the Company reflected other audit adjustments in its restated results. The restatement changed previously reported fully diluted earnings per share by $.00, $.00 and a decrease of $.03 for the years ended 2006, 2005 and 2004 respectively, with a cumulative after tax reduction to net income over the period 1995 to 2006 of $5.3 million. See the filings noted above for more information concerning the Company’s restated results for fiscal 2006, as well as its results for the first three quarters of fiscal 2007.
Included in operating income for the December and March quarters is third party legal and accounting costs related to the Special Committee’s review of $4.9 million and $3.0 million respectively.
On October 26, 2006, the Company announced unaudited results for the first quarter of fiscal year 2007 that ended on September 30, 2006. However, the Company did not report results on Form 10Q. The announced results were impacted by the restatement. The impact on previously announced pre tax income was an increase of $1.4 million with a net income increase of $0.8 million resulting in a $.04 increase to fully diluted earnings per share.
Company Conference Call Information
ScanSource will conduct a conference call to discuss its amended financial results for fiscal year 2006 and financial results for the first, second, and third quarters of fiscal 2007,today at 11:00 AM eastern time live on the internet at www.scansource.com.
Forecast for Next Quarter
As previously announced, the Company’s revenue forecast for the fourth quarter of fiscal 2007 could range from $512 million to $532 million.
Safe Harbor Statement
This news release contains comments that are “forward looking” statements that involve
risks and uncertainties; these statements are subject to the safe harbor created by the Private Securities Litigation Reform Act of 1995. Any number of important factors could cause actual results to differ materially from anticipated results. Results of the review of the Special Committee will have an impact on reported financial results for the fourth quarter, as well as previously reported results. For more information concerning factors that could cause actual results to differ from anticipated results, see the Company’s amended annual report on Form 10K/A filed with the Securities and Exchange Commission.
ScanSource, Inc. is a leading international distributor of specialty technology products. The Company markets specialty technologies through five sales units: ScanSource [automatic identification and data capture (AIDC) and point-of-sale (POS) products]; Catalyst Telecom (Avaya communications products); Paracon (communications products); T2 Supply (video conferencing and telephone products); and ScanSource Security Distribution (electronic security
The Company serves the North America marketplace and has an international segment, which sells AIDC and POS products in Latin America and Europe. Founded in 1992, the Company ranks #956 on the Fortune 1000. For more information, call the toll-free sales telephone number at 800.944.2432 or visit www.scansource.com.