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TEMPE, Ariz., May 1, 2013 (GLOBE NEWSWIRE) --
Insight Enterprises, Inc. (Nasdaq:NSIT) (the "Company") today reported results of operations for the quarter ended March 31, 2013.
First Quarter Highlights
For the first quarter of 2013 compared to the first quarter of 2012:
Net sales decreased 5% to $1.2 billion.
Gross profit declined 7% to $158.1 million, or 13.4% of net sales.
Earnings from operations were down 44% to $14.4 million, or 1.2% of net sales.
Net earnings and diluted earnings per share were $9.1 million and $0.20, respectively, in the first quarter of 2013, at an effective tax rate of 27.8%.
Excluding severance and restructuring expenses, net earnings and diluted earnings per share on a non-GAAP basis were $10.9 million and $0.24, respectively, in the first quarter of 2013.*
The Company generated $16.3 million of cash from operations in the first quarter of 2013, compared to using $20.4 million during the first quarter of 2012.
The Company paid down debt by $19.0 million during the first quarter of 2013, ending the quarter with $61.0 million of long-term debt outstanding.
The Company repurchased approximately 345,000 shares of its common stock for $6.9 million.
* A tabular reconciliation of financial measures prepared in accordance with United States generally accepted accounting principles ("GAAP") to non-GAAP financial measures is included at the end of this press release.
"In the first quarter, we saw additional weakness in demand for IT products by large enterprise clients in North America, which was partially offset by strong top-line growth in our EMEA and APAC segments. Additionally, we saw lower than expected gross margin performance in EMEA due to changes in business and client sales mix in the quarter and to changes in partner programs. We controlled our selling and administrative expenses; however, these expense savings did not offset the effect of lower sales volumes and gross margins, which led to earnings from operations performance below our expectations," stated Ken Lamneck, President and Chief Executive Officer. "As we move forward in 2013, we will continue to invest in sales and technical resources in key markets in North America and EMEA, as we believe this is critical to our long-term success. We will also remain focused on managing controllable costs and expect improved operating leverage in the back half of 2013," added Lamneck.
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