Wed, Aug 28, 8:28 PM (139 days ago)
ScanSource, Inc. reported a challenging fiscal year ending June 30, 2024, with net sales declining to $3,260 million, a 13.9% decrease from the prior year. The Specialty Technology Solutions segment saw sales drop by 14.3%, while Modern Communications & Cloud fell by 13.4%. Gross profit also decreased, leading to a 33.5% decline in operating income to $90.3 million. Operating expenses were slightly reduced by 1.5% to $308.7 million, primarily due to cost-cutting measures that generated $10 million in annual savings. The net income from continuing operations was $77.1 million, resulting in earnings per share of $3.06, down from $3.47. The company undertook a strategic review, resulting in restructuring and divestiture of its UK-based intY business, which yielded a $14.2 million gain. Key risks included macroeconomic pressures, supply chain disruptions, and cybersecurity vulnerabilities, highlighted by a ransomware attack in 2023. Financial health remains stable with cash and equivalents rising to $185.5 million, supported by a strong balance sheet. The company is focused on enhancing its hybrid distribution model and expanding its agency channel. Future outlook remains cautious amid ongoing economic uncertainties.