ScanSource Reports Record Earnings and Announces $220.5M Acquisition
On August 20, ScanSource (NASDAQ:SCSC) reported strong fourth-quarter results with a record non-GAAP profit of $1.46 per share, up 43.1% year-over-year, alongside net sales rising to $953.1 million—a 17.3% increase. The company also announced the acquisition of MicroAge for $220.5 million in cash, aiming to expand its cloud and cybersecurity services offerings. The Specialty Technology Solutions segment saw a significant boost with revenue reaching $927.2 million, up 17.6%, driven by demand for physical security and networking equipment. The Intelisys and Advisory division also posted growth of 7.2% in quarterly revenue to $25.9 million. Recurring revenue now accounts for 33.7% of consolidated gross profit after rising 10.6% year-over-year. ScanSource’s balance sheet remains strong, with free cash flow reaching $113.8 million and a net debt leverage ratio near zero relative to EBITDA. However, the company faced challenges in Brazil where sales dropped by 21.6%, prompting workforce reductions.
Tickers: $SCSC
Topics: Acquisition Earnings Growth Strategy