SEGMENT REPORTING

6 Months Ended

Sep. 30, 2022

SEGMENT REPORTING [Abstract]

SEGMENT REPORTING

16. SEGMENT REPORTING

Our operations are conducted through two operating segments that are also both reportable segments. Our technology segment includes sales of IT products, third-party software, third-party maintenance, advanced professional and managed services, and our proprietary software to commercial enterprises, state and local governments, and government contractors. Our financing segment consists of the financing of IT equipment, software, and related services to commercial enterprises, state and local governments, and government contractors. We measure the performance of the segments based on operating income.

Our reportable segment information for the three-and six-month periods ended September 30, 2022, and 2021 are summarized in the following table (in thousands):

	Three Months Ended
	September 30, 2022							September 30, 2021
	Technology		Financing		Total			Technology		Financing		Total
Net Sales
Product	$	406,317	$	22,228	$	428,545		$	375,444	$	21,716	$	397,160
Service		65,161		-		65,161			60,857		-		60,857
Total		471,478		22,228		493,706			436,301		21,716		458,017
Cost of Sales
Product		311,928		5,199		317,127			293,837		3,792		297,629
Service		43,275		-		43,275			37,386		-		37,386
Total		355,203		5,199		360,402			331,223		3,792		335,015
Gross Profit		116,275		17,029		133,304			105,078		17,924		123,002
Selling, general, and administrative		80,161		4,543		84,704			70,803		3,701		74,504
Depreciation and amortization		3,540		28		3,568			3,825		28		3,853
Interest and financing costs		671		254		925			199		143		342
Operating expenses		84,372		4,825		89,197			74,827		3,872		78,699
Operating income		31,903		12,204		44,107			30,251		14,052		44,303
Other income (expense)						(3,866	)						(325	)
Earnings before tax					$	40,241						$	43,978
Net Sales
Contracts with customers	$	466,972	$	6,923	$	473,895		$	430,339	$	1,776	$	432,115
Financing and other		4,506		15,305		19,811			5,962		19,940		25,902
Total	$	471,478	$	22,228	$	493,706		$	436,301	$	21,716	$	458,017
Selected Financial Data - Statement of Cash Flow
Depreciation and amortization	$	3,871	$	1,196	$	5,067		$	4,074	$	1,888	$	5,962
Purchases of property, equipment and operating lease equipment	$	611	$	22	$	633		$	948	$	8,301	$	9,249
Selected Financial Data - Balance Sheet
Total assets	$	1,167,532	$	203,808	$	1,371,340		$	902,070	$	237,875	$	1,139,945

	Six Months Ended
	September 30, 2022							September 30, 2021
	Technology		Financing		Total			Technology		Financing		Total
Net Sales
Product	$	791,993	$	31,802	$	823,795		$	720,210	$	38,007	$	758,217
Service		128,270		-		128,270			116,449		-		116,449
Total		920,263		31,802		952,065			836,659		38,007		874,666
Cost of Sales
Product		614,436		6,901		621,337			564,852		10,004		574,856
Service		83,901		-		83,901			71,296		-		71,296
Total		698,337		6,901		705,238			636,148		10,004		646,152
Gross Profit		221,926		24,901		246,827			200,511		28,003		228,514
Selling, general, and administrative		153,273		8,198		161,471			136,956		6,323		143,279
Depreciation and amortization		6,722		56		6,778			7,723		56		7,779
Interest and financing costs		809		479		1,288			358		343		701
Operating expenses		160,804		8,733		169,537			145,037		6,722		151,759
Operating income		61,122		16,168		77,290			55,474		21,281		76,755
Other income (expense)						(6,019	)						(202	)
Earnings before tax					$	71,271						$	76,553
Net Sales
Contracts with customers	$	910,774	$	7,868	$	918,642		$	826,880	$	7,194	$	834,074
Financing and other		9,489		23,934		33,423			9,779		30,813		40,592
Total	$	920,263	$	31,802	$	952,065		$	836,659	$	38,007	$	874,666
Selected Financial Data - Statement of Cash Flow
Depreciation and amortization	$	7,386	$	2,153	$	9,539		$	8,177	$	3,867	$	12,044
Purchases of property, equipment and operating lease equipment	$	1,897	$	513	$	2,410		$	2,255	$	13,988	$	16,243
Selected Financial Data - Balance Sheet
Total assets	$	1,167,532	$	203,808	$	1,371,340		$	902,070	$	237,875	$	1,139,945

TECHNOLOGY SEGMENT DISAGGREGATION OF REVENUE

We analyze net sales for our technology segment by customer end market and by vendor, as opposed to discrete product and service categories, which are summarized for the three- and six-month periods ended September 30, 2022, and 2021 in the tables below (in thousands):

	Three Months Ended September 30,						Six Months Ended September 30,
	2022			2021			2022			2021
Customer end market:
Telecom, media & entertainment	$	118,454		$	115,784		$	246,731		$	227,976
Technology		96,160			53,752			166,021			122,892
Healthcare		66,959			88,237			135,471			142,925
State and local government and educational institutions		70,491			68,662			135,092			134,077
Financial services		37,611			37,036			70,910			67,047
All others		81,803			72,830			166,038			141,742
Net sales		471,478			436,301			920,263			836,659
Less: Revenue from financing and other		(4,506	)		(5,962	)		(9,489	)		(9,779	)
Revenue from contracts with customers	$	466,972		$	430,339		$	910,774		$	826,880

	Three Months Ended September 30,						Six Months Ended September 30,
	2022			2021			2022			2021
Vendor:
Cisco systems	$	185,318		$	174,072		$	342,196		$	340,974
Juniper networks		39,580			18,438			62,089			43,152
HPE		32,330			8,965			39,129			21,301
NetApp		16,710			29,536			30,695			39,993
Dell EMC		15,221			43,498			77,094			69,838
Arista networks		8,933			8,047			20,105			19,545
All others		173,386			153,745			348,955			301,856
Net sales		471,478			436,301			920,263			836,659
Less: Revenue from financing and other		(4,506	)		(5,962	)		(9,489	)		(9,779	)
Revenue from contracts with customers	$	466,972		$	430,339		$	910,774		$	826,880

FINANCING SEGMENT DISAGGREGATION OF REVENUE

We analyze our revenues within our financing segment based on the nature of the arrangement. Our financing revenue generally consists of portfolio income, transactional gains, and post-contract earnings including month-to-month rents and the sales of off-lease equipment. All of our revenues from contracts with customers within our financing segment is from the sales of off-lease equipment.