PCM, Inc. (NASDAQ: PCMI) (
formerly PC Mall, Inc., NASDAQ: MALL),
a leading technology solutions provider, today reported financial results for the fourth quarter of 2012. Consolidated net sales for Q4 2012 were $382.0 million, an increase of $2.2 million from $379.8 million in Q4 2011. Consolidated gross profit for Q4 2012 increased $0.1 million to $50.5 million from $50.4 million in Q4 2011. Consolidated gross profit margin decreased slightly to 13.2% in Q4 2012 from 13.3% in Q4 2011. EBITDA (as defined below), which includes $0.2 million of severance and restructuring related costs for Q4 2012, increased $4.7 million to $8.6 million from $3.9 million in Q4 2011. Consolidated operating profit for Q4 2012, which includes $0.4 million of severance and restructuring related costs, increased $4.4 million to $5.5 million compared to $1.1 million for Q4 2011. Consolidated net income, which includes $0.2 million of severance and restructuring related costs, net of tax, increased $3.0 million to $2.6 million in Q4 2012 compared to consolidated net loss of $0.4 million for Q4 2011. Diluted EPS for Q4 2012 was $0.22 compared to diluted loss per share of $0.03 for Q4 2011. Excluding severance and restructuring related costs, adjusted EPS was $0.24 in Q4 2012. In Q4 2012, the Company revised its accounting for revenue recognition of certain software maintenance and subscription transactions that were previously recorded on a gross basis, to record such transactions on a net sales basis with no corresponding cost of goods sold. We have revised revenues and cost of sales in all reported prior periods to reflect this immaterial change, which had no impact on our consolidated gross profit, operating profit or earnings per share.
Commenting on the Company’s fourth quarter results, Frank Khulusi, Chairman, President and CEO of PCM, Inc. said, “I am exceptionally proud of our team regarding both our Q4 performance and our efforts related to our ongoing reorganization and rebranding initiative. In Q4 the demand environment was unfortunately far from ideal. Uncertainty relative to the health of the U.S. and global economies created continuing delays and deferrals of purchases of new IT solutions. Despite that environment, we were able to grow our sales by over 8% sequentially from Q3, while increasing our EBITDA and operating income relative to Q4 2011 by 118% and 399%, respectively. We accomplished this growth through a combination of tight cost controls and solid execution by our team.”