SEGMENT REPORTING

6 Months Ended

Sep. 30, 2025

SEGMENT REPORTING [Abstract]

SEGMENT REPORTING

15. SEGMENT REPORTING

We manage and report our operating results through three operating segments: product, professional services, and managed services. Our organizational structure is based on how our chief operating decision maker (“CODM”) allocates resources, manages operations, and evaluates performance. Our CODM is our Chief Executive Officer.

Our product segment includes sales of IT products, third-party software, and third-party maintenance, software assurance, and other third-party services. Our professional services segment includes our advanced professional services, staff augmentation, project management services, cloud consulting services and security services. Our managed services segment includes our advanced managed services, service desk, storage-as-a-service, cloud hosted services, cloud managed services and managed security services. Our other category consists of the international entities of our financing business that we retained after selling our domestic financing business.

Our CODM measures the performance of the segments based on gross profit. We do not present asset information for our reportable segments as we do not provide asset information to our CODM. Our CODM reviews financial results and forecasts quarterly to manage operations and evaluate performance. Our CODM also uses our financial results and forecasts to make investment decisions as part of our annual budgeting process.

The following table provides reportable segment information (in thousands):

	Three Months Ended September 30,					Six Months Ended September 30,
		2025			2024		2025		2024
Net sales
Product	$	485,014		$	389,613	$	1,005,909	$	846,925
Professional services		76,344			61,900		148,073		99,179
Managed services		47,417			41,767		91,997		82,677
Total reportable segments		608,775			493,280		1,245,979		1,028,781
Other		51			92		162		243
Total		608,826			493,372		1,246,141		1,029,024
Cost of sales
Product		366,001			300,254		780,414		659,061
Professional services		47,172			36,317		90,748		58,141
Managed services		33,464			29,428		64,510		57,504
Total reportable segments		446,637			365,999		935,672		774,706
Other		65			71		129		142
Total		446,702			366,070		935,801		774,848
Gross profit
Product		119,013			89,359		225,495		187,864
Professional services		29,172			25,583		57,325		41,038
Managed services		13,953			12,339		27,487		25,173
Total reportable segments		162,138			127,281		310,307		254,075
Other		(14	)		21		33		101
Total	$	162,124		$	127,302	$	310,340	$	254,176

DISAGGREGATION OF REVENUE

We recognize revenue in our product, professional services, and managed services segments from contracts with customers. We recognize revenue in the other category under guidance for financing and leases.

The following tables provide a disaggregation of revenue recognized from contracts with customers by timing and our position as principal or agent (in thousands):

	Three months ended September 30, 2025
			Product		Professional Services		Managed Services		Total
Timing and position as principal or agent:
Transferred at a point in time as principal		$	424,761	$	-	$	-	$	424,761
Transferred at a point in time as agent			60,253		-		-		60,253
Transferred over time as principal			-		76,344		47,417		123,761
Total revenue from contracts with customers		$	485,014	$	76,344	$	47,417	$	608,775

	Six months ended September 30, 2025
			Product		Professional Services		Managed Services		Total
Timing and position as principal or agent:
Transferred at a point in time as principal		$	895,848	$	-	$	-	$	895,848
Transferred at a point in time as agent			110,061		-		-		110,061
Transferred over time as principal			-		148,073		91,997		240,070
Total revenue from contracts with customers		$	1,005,909	$	148,073	$	91,997	$	1,245,979

	Three months ended September 30, 2024
			Product		Professional Services		Managed Services		Total
Timing and position as principal or agent:
Transferred at a point in time as principal		$	338,655	$	-	$	-	$	338,655
Transferred at a point in time as agent			50,958		-		-		50,958
Transferred over time as principal			-		61,900		41,767		103,667
Total revenue from contracts with customers		$	389,613	$	61,900	$	41,767	$	493,280

	Six months ended September 30, 2024
			Product		Professional Services		Managed Services		Total
Timing and position as principal or agent:
Transferred at a point in time as principal		$	760,539	$	-	$	-	$	760,539
Transferred at a point in time as agent			86,386		-		-		86,386
Transferred over time as principal			-		99,179		82,677		181,856
Total revenue from contracts with customers		$	846,925	$	99,179	$	82,677	$	1,028,781

The following table provides a disaggregation of our revenue from contracts with customers by customer end market and by type (in thousands):

		Three Months Ended September 30,				Six Months Ended September 30,
		2025		2024		2025		2024
Customer end market:
Telecom, Media & Entertainment	$	176,772	$	108,870	$	361,751	$	226,423
SLED		87,246		97,687		177,808		189,783
Healthcare		82,285		78,235		156,576		153,515
Technology		69,549		54,988		152,296		164,094
Financial Services		63,079		34,759		110,579		84,484
All others		129,844		118,741		286,969		210,482
Total revenue from contracts with customers	$	608,775	$	493,280	$	1,245,979	$	1,028,781
Type:
Product segment:
Networking	$	258,156	$	186,776	$	476,358	$	421,516
Cloud		128,270		121,336		335,266		258,567
Security		65,889		41,209		126,996		89,214
Collaboration		16,558		17,988		28,315		38,887
Other		16,141		22,304		38,974		38,741
Total product segment		485,014		389,613		1,005,909		846,925
Professional services segment		76,344		61,900		148,073		99,179
Managed services segment		47,417		41,767		91,997		82,677
Total revenue from contracts with customers	$	608,775	$	493,280	$	1,245,979	$	1,028,781