Q2 2024 PC Connection Inc Earnings Call Transcript
Key Points
- PC Connection Inc (CNXN) achieved record net income and earnings per share of $0.99 for Q2 2024.
- Gross profit increased by 6.9% to $136.5 million, with gross margins up 112 basis points to 18.5%.
- Operating income rose by 23.3% compared to Q2 2023, reaching $30.9 million.
- The enterprise solutions segment saw a 15% increase in sales of endpoint devices.
- PC Connection Inc (CNXN) was recognized on Newsweek's list of the Most Trustworthy Companies in America for the third consecutive year.
- Advanced technology revenue was down 8.7% in Q2 compared to the prior-year quarter.
- Networking solutions revenue decreased by 33%, attributed to a tough comparison with the previous year's supply chain recovery.
- Public sector solutions business saw a 14% decline in net sales compared to the previous year.
- SG&A expenses increased by 4.2%, primarily due to higher variable compensation.
- The company anticipates downward pressure on gross margins due to the device refresh and anticipated change in product mix.
Good afternoon, and welcome to the second-quarter 2024 Connection earnings conference call. My name is Justin, and I will be the coordinator for today. (Operator Instructions) As a reminder, this conference call is a property of Connection and may not be recorded or rebroadcast without any specific permission from the company.
On the call today are Tim McGrath, President and Chief Executive Officer; and Tom Baker, Senior Vice President and Chief Financial Officer. I'll now turn the call over to the company.
Thank you, operator, and good afternoon, everyone. I will now read our cautionary note regarding forward-looking statements.
Any statements or references made during the conference call that are not statements of historical fact may be deemed to be forward-looking statements. Various remarks that management may make about the company's future expectations, plans, and prospects constitute forward-looking statements for purposes of the Safe Harbor provisions under the Private Securities
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