EX-99.1 2 p74212exv99w1.htm EXHIBIT 99.1 exv99w1
 

Exhibit 99.1
(INSIGHT LOGO)
FOR IMMEDIATE RELEASE   Nasdaq: NSIT
INSIGHT ENTERPRISES, INC. REPORTS SECOND QUARTER RESULTS
INSIGHT ACHIEVES ANOTHER QUARTER OF RECORD FINANCIAL RESULTS
Net Sales — $1.28 Billion; Diluted EPS — $0.54
TEMPE, Ariz. – August 7, 2007 – Insight Enterprises, Inc. (Nasdaq: NSIT) (the “Company”) today reported results of operations for the three months ended June 30, 2007.
Second Quarter Highlights
    Net sales increased 64% to $1.28 billion.
 
    Gross profit grew 81% to $184.8 million.
 
    Net earnings from continuing operations increased 77% to $26.8 million.
 
    Diluted EPS from continuing operations grew 74% to $0.54, the highest in the Company’s history.
 
    Outstanding debt reduced by $60.0 million during the quarter.
 
    Completed financial restatement and filings with the Securities and Exchange Commission (“SEC”).
 
    Q2 2007 results include expenses of $4.3 million, $2.6 million net of tax, for professional fees associated with our stock option review.
 
    Q2 2007 results include severance expenses of $2.8 million, $1.7 million net of tax.
 
    North America net sales increased 39% and gross profit increased 58%, while earnings from operations increased 54%.
 
    EMEA net sales increased 188% and gross profit increased 159%, while earnings from operations increased 297%.
“I am very pleased to announce that Insight posted a record quarter with breakthrough financial results across all operating segments,” said Rich Fennessy, President and Chief Executive Officer. “Seasonally, this is our strongest quarter of the year for sales of software, but we also benefited from very strong results from our hardware and services categories.”
- MORE -
                 
Insight Enterprises, Inc.
  1305 West Auto Drive   Tempe, Arizona 85284   480-902-1001   FAX 480-760-8958


 

Insight Q2 2007 Results, Page 2
August 7, 2007
Financial Summary Table
(in thousands, except per share data and percentages)
                                                 
    Three Months Ended June 30   Six Months Ended June 30
Insight Enterprises, Inc.   2007   2006   % change   2007   2006   % change
Net sales
  $ 1,283,449     $ 780,346       64 %   $ 2,407,424     $ 1,513,170       59 %
Gross profit
  $ 184,813     $ 102,146       81 %   $ 337,988     $ 199,252       70 %
Earnings from operations
  $ 43,649     $ 22,612       93 %   $ 67,066     $ 43,613       54 %
Operating margin
    3.4 %     2.9 %     0.5 %     2.8 %     2.9 %     (0.1 %)
Net earnings from continuing operations
  $ 26,809     $ 15,169       77 %   $ 39,105     $ 28,611       37 %
Diluted EPS from continuing operations
  $ 0.54     $ 0.31       74 %   $ 0.79     $ 0.59       34 %
Net earnings
  $ 26,809     $ 25,887       4 %   $ 44,077     $ 40,711       8 %
Diluted EPS
  $ 0.54     $ 0.53       2 %   $ 0.89     $ 0.84       6 %
 
                                               
North America
                                               
Net sales
  $ 923,899     $ 665,023       39 %   $ 1,701,100     $ 1,277,902       33 %
Gross profit
  $ 134,189     $ 84,723       58 %   $ 246,105     $ 164,231       50 %
Earnings from operations
  $ 30,256     $ 19,696       54 %   $ 47,402     $ 37,149       28 %
 
                                               
EMEA
                                               
Net sales
  $ 331,903     $ 115,323       188 %   $ 659,279     $ 235,268       180 %
Gross profit
  $ 45,040     $ 17,423       159 %   $ 83,511     $ 35,021       138 %
Earnings from operations
  $ 11,570     $ 2,916       297 %   $ 18,030     $ 6,464       179 %
 
                                               
APAC
                                               
Net sales
  $ 27,647                 $ 47,045              
Gross profit
  $ 5,584                 $ 8,372              
Earnings from operations
  $ 1,823                 $ 1,634              
Effective Tax Rate
Our effective tax rate from continuing operations for the three months ended June 30, 2007 was 38.5% compared to 34.8% for the three months ended June 30, 2006. The increase in the effective tax rate from continuing operations was due primarily to a tax benefit recorded in the three months ended June 30, 2006 for internal initiatives that reduced certain state income taxes. Additionally, the effective tax rate is higher in the three months ended June 30, 2007 due to an increase in non-deductible expenses related to executive compensation.
OPERATING SEGMENTS
We operate in three reportable geographic operating segments: North America; EMEA (Europe, the Middle East and Africa); and APAC (Asia-Pacific). Currently, our offerings in North America and the United Kingdom include brand-name IT hardware, software and services. Our offerings in the remainder of our EMEA segment and in APAC currently only include software and select software-related services.
North America
North America’s net sales for the three months ended June 30, 2007 increased 39% to $923.9 million, compared to net sales of $665.0 million for the three months ended June 30, 2006, due primarily to the acquisition of Software Spectrum on September 7, 2006. “Our North America segment achieved very strong results in what is typically our strongest quarter of the year for sales of software,” said Fennessy. “However, the quarter was not all about software, as we were pleased with the results contributed by hardware and services as well.”
- MORE -
                 
Insight Enterprises, Inc.
  1305 West Auto Drive   Tempe, Arizona 85284   480-902-1001   FAX 480-760-8958

 


 

Insight Q2 2007 Results, Page 3
August 7, 2007
For the three months ended June 30, 2007, our North American gross profit increased 58% to $134.2 million from $84.7 million for the three months ended June 30, 2006. North America’s gross profit as a percentage of net sales was 14.5% for the three months ended June 30, 2007, compared to 12.7% for the three months ended June 30, 2006. “The increase in gross profit as a percentage of net sales from the second quarter of 2006 was due primarily to increases in agency fees for Microsoft enterprise software agreement renewals, decreases in inventory write-downs due to improvements in the aging of inventories and increases in the sales of services. These increases were offset partially by decreases in product margins, which includes vendor funding,” said Stanley Laybourne, Chief Financial Officer.
North America’s selling and administrative expenses were 10.9% of net sales for the three months ended June 30, 2007, compared to selling and administrative expenses as a percentage of sales of 9.8% for the three months ended June 30, 2006. “Compared to Q2 2006, we have seen increases in salaries and wages, primarily resulting from the acquired business, professional fees associated with our stock option review, sales incentive plans and bonus expenses due to increased overall financial performance and amortization of intangible assets,” Laybourne said. North America’s selling and administrative expenses for the three months ended June 30, 2007 include expenses of approximately $4.1 million for professional fees associated with our stock option review.
Additionally, North America recorded $2.8 million of severance expenses during the three months ended June 30, 2007.
North America’s earnings from operations for the three months ended June 30, 2007 increased 54% to $30.3 million from $19.7 million for the three months ended June 30, 2006. North America’s earnings from operations as a percentage of net sales increased to 3.3% for the three months ended June 30, 2007 from 3.0% for the three months ended June 30, 2006.
EMEA
EMEA’s net sales for the three months ended June 30, 2007 increased by 188% to $331.9 million, compared to net sales of $115.3 million for the three months ended June 30, 2006. “Our EMEA segment capitalized on the strongest quarter for software sales and achieved very solid results across all regions,” said Fennessy. “Additionally, our United Kingdom operations continue to benefit from a combined solution offering and posted strong results across the hardware, software and services categories.”
In Q2 2007, our EMEA gross profit was $45.0 million, a 159% increase over the prior year. EMEA’s gross profit as a percentage of net sales was 13.6% for the three months ended June 30, 2007, compared to 15.1% for the three months ended June 30, 2006. “The decrease in gross margin from the second quarter of 2006 was due primarily to decreases in product margin, which includes vendor funding, and decreases in supplier discounts. These decreases in gross margin were offset partially by increases in agency fees for Microsoft enterprise software agreement renewals and decreases in inventory write-downs due to improvements in the aging of inventories,” said Laybourne.
For the three months ended June 30, 2007, EMEA’s selling and administrative expenses were 10.1% of net sales compared with 12.6% in the same quarter of 2006. “The decrease from Q2 2006 was due primarily to the increase in net sales, offset partially by increases in salaries and wages, primarily resulting from the acquired business, increases in sales incentive plans and bonus expenses due to increased overall financial performance and increases in amortization of intangible assets,” Laybourne said. EMEA’s selling and administrative expenses for the three months ended June 30, 2007 include expenses of approximately $228,000 for professional fees associated with our stock option review.
EMEA’s earnings from operations increased 297% in the three months ended June 30, 2007 to $11.6 million from $2.9 million in the three months ended June 30, 2006. EMEA’s earnings from operations as a percentage
- MORE -
                 
Insight Enterprises, Inc.
  1305 West Auto Drive   Tempe, Arizona 85284   480-902-1001   FAX 480-760-8958


 

Insight Q2 2007 Results, Page 4
August 7, 2007
of net sales increased to 3.5% for the three months ended June 30, 2007 from 2.5% for the three months ended June 30, 2006.
EMEA’s operating results translated into U.S. dollars continue to benefit from the weakening of the U.S. dollar against our functional currencies in EMEA, particularly the British Pound Sterling and the Euro.
APAC
Our APAC segment, which was added as a result of the acquisition of Software Spectrum in September 2006, recognized net sales of $27.6 million, gross profit of $5.6 million and earnings from operations of $1.8 million for the three months ended June 30, 2007. “We are pleased with the continued strong performance of our APAC segment,” said Fennessy.
CONFERENCE CALL AND WEBCAST
We will host a conference call and live Web cast today at 5:00 p.m. ET to discuss the quarterly results of operations. A live Web cast of the conference call (in listen-only mode) will be available on our corporate Web site at www.insight.com and a replay of the Web cast will be available on our corporate Web site for a limited time.
FORWARD-LOOKING INFORMATION
Certain statements in this release are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. Future events and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking statement. Some of the important factors that could cause our actual results to differ materially from those projected in any forward-looking statements, include, but are not limited to, the following, which are discussed in “Risk Factors” in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2006:
    changes in the information technology industry and/or the economic environment;
 
    our reliance on partners for product availability, marketing funds, purchasing incentives and competitive products to sell;
 
    disruptions in our information technology and voice and data networks, including the upgrade to mySAP and the migration of Software Spectrum to our information technology and voice and data networks;
 
    the integration and operation of Software Spectrum, including our ability to achieve the expected benefits of the acquisition;
 
    actions of our competitors, including manufacturers/publishers of products we sell;
 
    the informal inquiry from the SEC and the fact that we could be subject to stockholder litigation related to the investigation by the Options Subcommittee of our Board of Directors into our historical stock option granting practices and the related restatement of our consolidated financial statements;
 
    the recently enacted changes in securities laws and regulations, including potential risk resulting from our evaluation of internal controls under the Sarbanes-Oxley Act of 2002;
 
    the risks associated with international operations;
 
    sales of software licenses are subject to seasonal changes in demand;
 
    increased debt and interest expense and lower availability on our financing facilities;
 
    increased exposure to currency exchange risks;
 
    our dependence on key personnel;
 
    risk that purchased goodwill or amortizable intangible assets become impaired;
    our failure to comply with the terms and conditions of our public sector contracts;
- MORE -
                 
Insight Enterprises, Inc.
  1305 West Auto Drive   Tempe, Arizona 85284   480-902-1001   FAX 480-760-8958


 

Insight Q2 2007 Results, Page 5
August 7, 2007
    risks associated with our very limited experience in outsourcing business functions to India;
 
    rapid changes in product standards; and
 
    intellectual property infringement claims.
Additionally, there may be other risks that are otherwise described from time to time in the reports that we file with the SEC.
In addition, these forward-looking statements include statements regarding the informal inquiry commenced by the SEC and a stockholder’s demand to inspect our books and records pursuant to Section 220 of the Delaware General Corporation Law. There can be no assurances that forward-looking statements will be achieved, and actual results could differ materially from those suggested by the forward-looking statements. Important factors that could cause actual results to differ materially include: adjustments to the consolidated financial statements that may be required related to the SEC informal inquiry; and risks of litigation and governmental or other regulatory inquiry or proceedings arising out of or related to the Company’s historical stock option granting practices. Therefore, any forward-looking statements in this release should be considered in light of various important factors, including the risks and uncertainties listed above, as well as others.
We assume no obligation to update, and do not intend to update, any forward-looking statements. We do not endorse any projections regarding future performance that may be made by third parties.
         
Contacts:
  Stanley Laybourne   Karen McGinnis
 
  Chief Financial Officer   Chief Accounting Officer
 
  Tel. 480-350-1142   Tel. 480-333-3074
 
  Email slaybour@insight.com   Email kmcginni@insight.com
- MORE -
                 
Insight Enterprises, Inc.
  1305 West Auto Drive   Tempe, Arizona 85284   480-902-1001   FAX 480-760-8958


 

Insight Q2 2007 Results, Page 6
August 7, 2007
INSIGHT ENTERPRISES, INC. AND SUBSIDIARIES
Consolidated Statements of Earnings
(In thousands, except per share data)
(Unaudited)
                                 
    Three Months Ended     Six Months Ended  
    June 30,     June 30,  
    2007     2006     2007     2006  
Net sales
  $ 1,283,449     $ 780,346     $ 2,407,424     $ 1,513,170  
Costs of goods sold
    1,098,636       678,200       2,069,436       1,313,918  
 
                       
Gross profit
    184,813       102,146       337,988       199,252  
Operating expenses:
                               
Selling and administrative expenses
    138,323       79,534       268,081       155,639  
Severance and restructuring expenses
    2,841             2,841        
 
                       
Earnings from operations
    43,649       22,612       67,066       43,613  
Non-operating (income) expense:
                               
Interest income
    (2,182 )     (1,086 )     (4,294 )     (2,008 )
Interest expense
    4,767       272       10,526       1,069  
Net foreign currency exchange gain
    (3,002 )     (7 )     (3,656 )     24  
Other expense, net
    496       158       713       320  
 
                       
Earnings from continuing operations before income taxes
    43,570       23,275       63,777       44,208  
Income tax expense
    16,761       8,106       24,672       15,597  
 
                       
Net earnings from continuing operations
    26,809       15,169       39,105       28,611  
Net earnings from discontinued operations
          10,718       4,972       12,100  
 
                       
Net earnings
  $ 26,809     $ 25,887     $ 44,077     $ 40,711  
 
                       
 
                               
Net earnings per share — Basic:
                               
Net earnings from continuing operations
  $ 0.55     $ 0.32     $ 0.80     $ 0.60  
Net earnings from discontinued operation
          0.22       0.10       0.25  
 
                       
Net earnings per share
  $ 0.55     $ 0.54     $ 0.90     $ 0.85  
 
                       
 
                               
Net earnings per share — Diluted:
                               
Net earnings from continuing operations
  $ 0.54     $ 0.31     $ 0.79     $ 0.59  
Net earnings from discontinued operation
          0.22       0.10       0.25  
 
                       
Net earnings per share
  $ 0.54     $ 0.53     $ 0.89     $ 0.84  
 
                       
 
                               
Shares used in per share calculations:
                               
Basic
    49,099       48,277       49,054       48,140  
 
                       
Diluted
    49,402       48,352       49,346       48,234  
 
                       
- MORE -
                 
Insight Enterprises, Inc.
  1305 West Auto Drive   Tempe, Arizona 85284   480-902-1001   FAX 480-760-8958


 

Insight Q2 2007 Results, Page 7
August 7, 2007
INSIGHT ENTERPRISES, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(In thousands)
(Unaudited)
                 
    June 30,     December 31,  
    2007     2006  
ASSETS
               
Current assets:
               
Cash and cash equivalents
  $ 46,144     $ 54,697  
Accounts receivable, net
    1,029,215       994,892  
Inventories
    98,419       97,751  
Inventories not available for sale
    20,040       31,112  
Deferred income taxes
    13,812       15,583  
Other current assets
    20,923       32,359  
 
           
Total current assets
    1,228,553       1,226,394  
 
               
Property and equipment, net
    137,546       129,256  
Buildings held for lease
    16,139       16,522  
Goodwill
    300,133       296,781  
Intangible assets
    82,834       86,929  
Deferred income taxes
    2,908        
Other long-term assets
    18,618       18,269  
 
           
 
  $ 1,786,731     $ 1,774,151  
 
           
 
               
LIABILITIES AND STOCKHOLDERS’ EQUITY
               
Current liabilities:
               
Accounts payable
  $ 708,542     $ 611,367  
Accrued expenses and other current liabilities
    125,664       136,401  
Current portion of long term debt
    15,000       15,000  
Deferred revenue
    27,618       40,728  
Line of credit
    42,000       15,000  
 
           
Total current liabilities
    918,824       818,496  
 
               
Long-term debt
    84,500       224,250  
Long-term deferred income taxes
    17,787       19,403  
Other long-term liabilities
    16,707       21,652  
 
               
Stockholders’ equity:
               
Preferred stock
           
Common stock
    491       489  
Additional paid-in capital
    371,424       363,308  
Retained earnings
    341,741       297,664  
Accumulated other comprehensive income – foreign currency translation adjustment
    35,257       28,889  
 
           
Total stockholders’ equity
    748,913       690,350  
 
           
 
  $ 1,786,731     $ 1,774,151  
 
           
- MORE -
                 
Insight Enterprises, Inc.
  1305 West Auto Drive   Tempe, Arizona 85284   480-902-1001   FAX 480-760-8958


 

Insight Q2 2007 Results, Page 8
August 7, 2007
INSIGHT ENTERPRISES, INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
                 
    Six Months Ended June 30,  
    2007     2006  
Cash flows from operating activities:
               
Net earnings from continuing operations
  $ 39,105     $ 28,611  
Plus: net earnings from discontinued operations
    4,972       12,100  
 
           
Net earnings
    44,077       40,711  
Adjustments to reconcile net earnings to net cash provided by operating activities:
               
Depreciation and amortization
    17,641       9,086  
Provision for losses on accounts receivable
    1,459       1,483  
Write-downs of inventories
    2,841       4,748  
Non-cash stock-based compensation
    5,663       6,254  
Gain on sale of discontinued operation
    (7,937 )     (15,122 )
Excess tax benefit from employee gains on stock-based compensation
    (45 )     (895 )
Deferred income taxes
    (2,753 )     (6,724 )
Changes in assets and liabilities:
               
(Increase) decrease in accounts receivable
    (42,488 )     20,048  
Decrease in inventories
    484       39,379  
Decrease (increase) in other current assets
    11,759       (2,120 )
Increase in other assets
    (2,221 )     (14,625 )
Increase in accounts payable
    105,175       55,459  
Decrease in inventories financing facility
          (4,281 )
Decrease in deferred revenue
    (12,937 )     (6,521 )
Decrease in accrued expenses and other current liabilities liabilities
    (17,172 )     (95 )
 
           
Net cash provided by operating activities
    103,546       126,785  
 
           
Cash flows from investing activities:
               
Proceeds from sale of discontinued operation
    28,631       46,500  
Purchases of property and equipment
    (18,867 )     (17,187 )
 
           
Net cash provided by investing activities
    9,764       29,313  
 
           
Cash flows from financing activities:
               
Repayments on short-term financing facility
          (45,000 )
Borrowings on long-term financing facility
    262,000        
Repayments on long-term financing facility
    (398,000 )      
Repayments on term loan
    (3,750 )      
(Repayments) borrowings on line of credit
    27,000       (21,309 )
Proceeds from sales of common stock under employee stock plans
    2,475       7,391  
Excess tax benefit from employee gains on stock-based compensation
    45       895  
Decrease in book overdrafts
    (15,606 )      
 
           
Net cash used in financing activities
    (125,836 )     (58,023 )
 
           
Net cash provided by discontinued operations
          129  
 
           
Foreign currency exchange effect on cash flow
    3,973       4,903  
 
           
(Decrease) increase in cash and cash equivalents
    (8,553 )     103,107  
Cash and cash equivalents at beginning of period
    54,697       35,145  
 
           
Cash and cash equivalents at end of period
  $ 46,144     $ 138,252  
 
           
- MORE -
                 
Insight Enterprises, Inc.   1305 West Auto Drive   Tempe, Arizona 85284   480-902-1001   FAX 480-760-8958

 


 

Insight Q2 2007 Results, Page 9
August 7, 2007
Insight Enterprises, Inc. and Subsidiaries
Quarterly Select Operating Segment Statistics
(UNAUDITED)
                         
    Three Months Ended        
    June 30,        
    2007     2006     Change  
North America
                       
Number of shipping days
    63       64     (1 day)
Number of account executives
    1,336       1,034       29 %
Net sales per account executive
  $ 707,968     $ 637,300       11 %
Gross profit per account executive
  $ 102,827     $ 81,191       27 %
Sales mix (as a % of net sales):
                       
Notebooks and PDA’s
    11 %     13 %     22 % (a)
Desktops and servers
    12 %     15 %     9 % (a)
Networking and connectivity
    10 %     18 %     (27 %)(a)
Storage devices
    6 %     7 %     3 %(a)
Printers
    4 %     7 %     (12 %)(a)
Memory and processors
    4 %     5 %     3 % (a)
Supplies and accessories
    4 %     7 %     (9 %)(a)
Monitors and video
    4 %     6 %     5 %(a)
Miscellaneous
    6 %     8 %     6 % (a)
 
                   
Hardware
    61 %     86 %     (-1 %) (a)
Software
    37 %     12 %     315 % (a)
Services
    2 %     2 %     26 %(a)
 
                   
 
    100 %     100 %        
 
                   
 
                       
EMEA
                       
Number of shipping days(b)
    61       61        
Number of account executives
    495       276       79 %
Net sales per account executive
  $ 682,227     $ 437,660       56 %
Gross profit per account executive
  $ 92,578     $ 66,122       40 %
Sales mix (as a % of net sales):
                       
Notebooks and PDA’s
    8 %     17 %     34 % (a)
Desktops and servers
    6 %     14 %     24 % (a)
Networking and connectivity
    4 %     9 %     14 % (a)
Storage devices
    3 %     8 %     22 % (a)
Printers
    3 %     8 %     9 % (a)
Memory and processors
    2 %     4 %     12 % (a)
Supplies and accessories
    3 %     8 %     17 % (a)
Monitors and video
    2 %     8 %     (2 %)(a)
Miscellaneous
    2 %     6 %     15 % (a)
 
                   
Hardware
    33 %     82 %     18 % (a)
Software
    66 %     17 %     1,045 % (a)
Services
    <1 %     <1 %     220 % (a)
 
                   
 
    100 %     100 %        
 
                   
 
(a)   Represents growth/decline in category net sales.
 
(b)   Represents shipping days for the United Kingdom as it makes up the largest percentage of net sales in our EMEA segment.
- MORE -
                 
Insight Enterprises, Inc.   1305 West Auto Drive   Tempe, Arizona 85284   480-902-1001   FAX 480-760-8958

 


 

Insight Q2 2007 Results, Page 10
August 7, 2007
INSIGHT ENTERPRISES, INC. AND SUBSIDIARIES
Operating Segment Statement of Earnings Information
(In thousands)
(unaudited)
                                 
    Three Months Ended June 30, 2007  
    North America     EMEA     APAC     Consolidated  
Net sales
  $ 923,899     $ 331,903     $ 27,647     $ 1,283,449  
Costs of goods sold
    789,710       286,863       22,063       1,098,636  
 
                       
Gross profit
    134,189       45,040       5,584       184,813  
Operating expenses:
                               
Selling and administrative expenses
    101,092       33,470       3,761       138,323  
Severance and restructuring expenses
    2,841                   2,841  
 
                       
Earnings from operations
  $ 30,256     $ 11,570     $ 1,823       43,649  
 
                         
Non-operating expense, net
                            79  
 
                             
Earnings from continuing operations before income taxes
                            43,570  
Income tax expense
                            16,761  
 
                             
Net earnings from continuing operations
                            26,809  
Net earnings from discontinued operations
                             
 
                             
Net earnings
                          $ 26,809  
 
                             
 
Total assets
  $ 2,168,691     $ 485,673     $ 42,112     $ 1,786,731 *
 
                       
 
*   Consolidated total assets include corporate assets and intercompany eliminations for a net reduction of $909,745.
                                 
    Six Months Ended June 30, 2007  
    North America     EMEA     APAC     Consolidated  
Net sales
  $ 1,701,100     $ 659,279     $ 47,045     $ 2,407,424  
Costs of goods sold
    1,454,995       575,768       38,673       2,069,436  
 
                       
Gross profit
    246,105       83,511       8,372       337,988  
Operating expenses:
                               
Selling and administrative expenses
    195,862       65,481       6,738       268,081  
Severance and restructuring expenses
    2,841                   2,841  
 
                       
Earnings from operations
  $ 47,402     $ 18,030     $ 1,634       67,066  
 
                         
Non-operating expense, net
                            3,289  
 
                             
Earnings from continuing operations before income taxes
                            63,777  
Income tax expense
                            24,672  
 
                             
Net earnings from continuing operations
                            39,105  
Net earnings from discontinued operations
                            4,972  
 
                             
Net earnings
                          $ 44,077  
 
                             
 
Total assets
  $ 2,168,691     $ 485,673     $ 42,112     $ 1,786,731 *
 
                       
 
*   Consolidated total assets include corporate assets and intercompany eliminations for a net reduction of $909,745.
- MORE -
                 
Insight Enterprises, Inc.   1305 West Auto Drive   Tempe, Arizona 85284   480-902-1001   FAX 480-760-8958

 


 

Insight Q2 2007 Results, Page 11
August 7, 2007
INSIGHT ENTERPRISES, INC. AND SUBSIDIARIES
Operating Segment Statement of Earnings Information (continued)
(In thousands)
(unaudited)
                                 
    Three Months Ended June 30, 2006  
    North America     EMEA     APAC     Consolidated  
Net sales
  $ 665,023     $ 115,323     $     $ 780,346  
Costs of goods sold
    580,300       97,900             678,200  
 
                       
Gross profit
    84,723       17,423             102,146  
Operating expenses:
                               
Selling and administrative expenses
    65,027       14,507             79,534  
 
                       
Earnings from operations
  $ 19,696     $ 2,916     $       22,612  
 
                         
Non-operating income, net
                            (663 )
 
                             
Earnings from continuing operations before income taxes
                            23,275  
Income tax expense
                            8,106  
 
                             
Net earnings from continuing operations
                            15,169  
Net earnings from discontinued operations
                            10,718  
 
                             
Net earnings
                          $ 25,887  
 
                             
 
Total assets
  $ 1,184,765     $ 123,913     $     $ 930,077 *
 
                       
 
*   Consolidated total assets include corporate assets and intercompany eliminations for a net reduction of $378,601.
                                 
    Six Months Ended June 30, 2006  
    North America     EMEA     APAC     Consolidated  
Net sales
  $ 1,277,902     $ 235,268     $     $ 1,513,170  
Costs of goods sold
    1,113,671       200,247             1,313,918  
 
                       
Gross profit
    164,231       35,021             199,252  
Operating expenses:
                               
Selling and administrative expenses
    127,082       28,557             155,639  
 
                       
Earnings from operations
  $ 37,149     $ 6,464             $ 43,613  
 
                         
Non-operating income, net
                            (595 )
 
                             
Earnings from continuing operations before income taxes
                            44,208  
Income tax expense
                            15,597  
 
                             
Net earnings from continuing operations
                            28,611  
Net earnings from discontinued operation
                            12,100  
 
                             
Net earnings
                          $ 40,711  
 
                             
 
Total assets
  $ 1,184,765     $ 123,913     $     $ 930,077 *
 
                       
 
*   Consolidated total assets include corporate assets and intercompany eliminations for a net reduction of $378,601.
-###-
                 
Insight Enterprises, Inc.   1305 West Auto Drive   Tempe, Arizona 85284   480-902-1001   FAX 480-760-8958