Insight Enterprises, Inc. (NASDAQ: NSIT)
(the “Company”) today reported results of operations for the quarter ended June 30, 2012.
Second Quarter Highlights
For the second quarter of 2012 compared to the second quarter of 2011:
- Net sales increased 4% to $1.53 billion.
- Gross profit decreased 1% to $201.3 million.
- Earnings from operations increased 2% to $55.3 million, or 3.6% of net sales.
- Net earnings remained flat at $35.3 million.
- Diluted earnings per share increased 5% to $0.79.
“During the second quarter, our team continued to execute well, generating growth in sales and earnings from operations despite slowing demand and continued macro economic uncertainty globally,” stated Ken Lamneck, President and Chief Executive Officer.
In North America, net sales were $993.0 million for the second quarter of 2012, remaining flat compared to sales of $989.3 million for the second quarter of 2011. Net sales of software increased 12% year over year, while net sales of hardware and services decreased 4% and 13%, respectively, year to year. Results for the second quarter of 2012 include Ensynch, which the Company acquired effective October 1, 2011. Gross profit of $130.4 million was down 1% year to year, with gross margin decreasing to 13.1% from 13.4% reported in the second quarter of 2011. Selling and administrative expenses in North America in the second quarter of 2012 decreased 5%, or $4.7 million, compared to the second quarter of 2011. The North America segment recognized a gain of $1.2 million on the sale of a portfolio of non-core service contracts as a reduction of selling and administrative expenses in the three months ended June 30, 2012. During the second quarter of 2012, the North America segment had $894,000, $552,000 net of tax, of severance and restructuring expenses compared to $1.1 million, $689,000 net of tax, during the second quarter of 2011. As a result, earnings from operations in North America increased 9% year over year to $39.1 million, or 3.9% of net sales, in the second quarter of 2012, compared to $36.0 million, or 3.6% of net sales, in the second quarter of 2011.