EX-99.1 2 p74553exv99w1.htm EX-99.1 exv99w1
 

Exhibit 99.1
(INSIGHT LOGO)
 
     
FOR IMMEDIATE RELEASE   Nasdaq: NSIT
INSIGHT ENTERPRISES, INC. REPORTS THIRD QUARTER RESULTS
Q3 2007 Net Sales — $1.11 Billion; Diluted EPS — $0.18
YTD 2007 Net Sales — $3.52 Billion; Diluted EPS — $1.07
TEMPE, Ariz. – November 1, 2007 – Insight Enterprises, Inc. (Nasdaq: NSIT) (the “Company”) today reported results of operations for the three and nine months ended September 30, 2007.
Third Quarter and Year-to-Date Highlights
    Net sales for the quarter increased 29% to $1.11 billion, and year-to-date net sales increased 48% to $3.52 billion.
 
    Gross profit for the quarter grew 32% to $149.8 million, and year-to-date gross profit grew 56% to $487.8 million.
 
    Net earnings from continuing operations decreased 46% to $9.1 million, while year-to-date net earnings from continuing operations increased 6% to $48.2 million.
 
    Diluted EPS from continuing operations decreased 47% to $0.18, while year-to-date diluted EPS from continuing operations increased 3% to $0.97.
 
    Q3 2007 results include expenses of $2.5 million, $1.5 million net of tax, for professional fees associated with our stock option review, while year-to-date results include $12.5 million, $7.6 million net of tax, for such professional fees and $2.8 million, $1.7 million net of tax, for severance expense.
“Even with more of a seasonal decline in our software business than we had expected, I believe we had a solid quarter,” said Rich Fennessy, President and Chief Executive Officer. “Year-to-date, our results are very strong, and we feel good about our business across all segments and categories, including software, going into the fourth quarter.”
                 
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Insight Enterprises, Inc.   1305 West Auto Drive   Tempe, Arizona 85284   480-902-1001   FAX 480-760-8958

 


 

     
Insight Q3 2007 Results, Page 2   November 1, 2007
Financial Summary Table
(in thousands, except per share data and percentages)
                                                 
    Three Months Ended September 30,   Nine Months Ended September 30,
Insight Enterprises, Inc.   2007   2006   % change   2007   2006   % change
Net sales
  $ 1,109,705     $ 857,919       29 %   $ 3,517,129     $ 2,371,089       48 %
Gross profit
  $ 149,846     $ 113,329       32 %   $ 487,834     $ 312,581       56 %
Earnings from operations
  $ 19,026     $ 24,389       (22 %)   $ 86,091     $ 68,002       27 %
Operating margin
    1.7 %     2.8 %     (1.1 %)     2.4 %     2.9 %     (0.5 %)
Net earnings from continuing operations
  $ 9,096     $ 16,710       (46 %)   $ 48,201     $ 45,321       6 %
Diluted EPS from continuing operations
  $ 0.18     $ 0.34       (47 %)   $ 0.97     $ 0.94       3 %
Net earnings
  $ 9,096     $ 17,240       (47 %)   $ 53,173     $ 57,951       (8 %)
Diluted EPS
  $ 0.18     $ 0.35       (49 %)   $ 1.07     $ 1.20       (11 %)
 
                                               
North America
                                               
Net sales
  $ 817,747     $ 694,284       18 %   $ 2,518,847     $ 1,972,186       28 %
Gross profit
  $ 109,018     $ 90,924       20 %   $ 355,123     $ 255,155       39 %
Earnings from operations
  $ 15,276     $ 20,393       (25 %)   $ 62,677     $ 57,542       9 %
 
                                               
EMEA
                                               
Net sales
  $ 264,679     $ 157,115       69 %   $ 923,958     $ 392,383       135 %
Gross profit
  $ 35,714     $ 21,413       67 %   $ 119,225     $ 56,434       111 %
Earnings from operations
  $ 2,549     $ 3,711       (31 %)   $ 20,579     $ 10,175       102 %
 
                                               
APAC
                                               
Net sales
  $ 27,279     $ 6,520       318 %   $ 74,324     $ 6,520       1,040 %
Gross profit
  $ 5,114     $ 992       416 %   $ 13,486     $ 992       1,259 %
Earnings from operations
  $ 1,201     $ 285       321 %   $ 2,835     $ 285       895 %
Effective Tax Rate
Our effective tax rate from continuing operations for the three months ended September 30, 2007 was 40.6% compared to 32.0% for the three months ended September 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 September 30, 2006 as a result of the reversal of accrued income taxes resulting from the determination that a reserve previously recorded for potential tax exposures was no longer necessary. Additionally, the effective tax rate is higher in the three months ended September 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 September 30, 2007 increased 18% to $817.7 million compared to net sales of $694.3 million for the three months ended September 30, 2006. “Although we experienced significant seasonality in our software sales, we were pleased with our 5% growth in hardware sales and our 42% growth in services over the prior year,” said Fennessy.
                 
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Insight Enterprises, Inc.   1305 West Auto Drive   Tempe, Arizona 85284   480-902-1001   FAX 480-760-8958

 


 

     
Insight Q3 2007 Results, Page 3   November 1, 2007
For the three months ended September 30, 2007, our North American gross profit increased 20% to $109.0 million from $90.9 million for the three months ended September 30, 2006. North America’s gross profit as a percentage of net sales was 13.3% for the three months ended September 30, 2007, compared to 13.1% for the three months ended September 30, 2006. “The increase in gross margin from the third quarter of 2006 was due primarily to increases in agency fees for Microsoft enterprise software agreement renewals offset partially by decreases in product margin, which includes vendor funding and decreases in freight margin,” said Stanley Laybourne, Chief Financial Officer.
North America’s selling and administrative expenses were 11.5% of net sales for the three months ended September 30, 2007, compared to selling and administrative expenses as a percentage of sales of 10.1% for the three months ended September 30, 2006. “Compared to Q3 2006, we have seen increases in salaries and wages, primarily resulting from the acquired business in September 2006, professional fees associated with our stock option review and amortization of acquired intangible assets,” Laybourne said. North America’s selling and administrative expenses for the three months ended September 30, 2007 include expenses of approximately $2.5 million for professional fees associated with our stock option review.
North America’s earnings from operations for the three months ended September 30, 2007 decreased 25% to $15.3 million from $20.4 million for the three months ended September 30, 2006. North America’s earnings from operations as a percentage of net sales decreased to 1.9% for the three months ended September 30, 2007 from 2.9% for the three months ended September 30, 2006.
EMEA
EMEA’s net sales for the three months ended September 30, 2007 increased 69% to $264.7 million, compared to net sales of $157.1 million for the three months ended September 30, 2006. “Our EMEA segment was also affected by the significant seasonality within our software category,” said Fennessy. “Even so, EMEA exceeded our internal expectations for the quarter and posted strong results across the hardware and services categories.”
In Q3 2007, our EMEA gross profit was $35.7 million, a 67% increase over the prior year. EMEA’s gross profit as a percentage of net sales was 13.5% for the three months ended September 30, 2007, compared to 13.6% for the three months ended September 30, 2006. “The decrease in gross margin from the third quarter of 2006 was due primarily to decreases in product margin, which includes vendor funding, and decreases in freight margin. These decreases in gross margin were offset partially by increases in agency fees for Microsoft enterprise software agreement renewals,” said Laybourne.
For the three months ended September 30, 2007, EMEA’s selling and administrative expenses were 12.5% of net sales compared with 11.1% in the same quarter of 2006. “The increase from Q3 2006 was due primarily to increases in salaries and wages and expenses related to additional facilities, predominantly resulting from the acquired business in September 2006, increases in sales incentive plans and bonus expenses due to increased overall financial performance, amortization of acquired intangible assets and costs associated with the initial stages of our mySAP upgrade in EMEA that were not capitalizable,” Laybourne said.
EMEA’s earnings from operations decreased 31% in the three months ended September 30, 2007 to $2.5 million from $3.7 million in the three months ended September 30, 2006. EMEA’s earnings from operations as a percentage of net sales decreased to 1.0% for the three months ended September 30, 2007 from 2.4% for the three months ended September 30, 2006.
                 
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Insight Enterprises, Inc.   1305 West Auto Drive   Tempe, Arizona 85284   480-902-1001   FAX 480-760-8958

 


 

     
Insight Q3 2007 Results, Page 4   November 1, 2007
APAC
Our APAC segment, which was added as a result of the acquisition of Software Spectrum in September 2006, recognized net sales of $27.3 million, gross profit of $5.1 million and contributed $1.2 million to earnings from operations for the three months ended September 30, 2007. “Our APAC segment continues to perform very well and continues to overachieve against internal expectations,” 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 and the related conference call and Web cast 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/A 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 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;
 
    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.
                 
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Insight Enterprises, Inc.   1305 West Auto Drive   Tempe, Arizona 85284   480-902-1001   FAX 480-760-8958

 


 

     
Insight Q3 2007 Results, Page 5   November 1, 2007
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
                 
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Insight Enterprises, Inc.   1305 West Auto Drive   Tempe, Arizona 85284   480-902-1001   FAX 480-760-8958

 


 

     
Insight Q3 2007 Results, Page 6   November 1, 2007
INSIGHT ENTERPRISES, INC. AND SUBSIDIARIES
Consolidated Statements of Earnings
(In thousands, except per share data)
(Unaudited)
                                 
    Three Months Ended     Nine Months Ended  
    September 30,     September 30,  
    2007     2006     2007     2006  
Net sales
  $ 1,109,705     $ 857,919     $ 3,517,129     $ 2,371,089  
Costs of goods sold
    959,859       744,590       3,029,295       2,058,508  
 
                       
Gross profit
    149,846       113,329       487,834       312,581  
Operating expenses:
                               
Selling and administrative expenses
    130,820       88,211       398,902       243,850  
Severance and restructuring expenses
          729       2,841       729  
 
                       
Earnings from operations
    19,026       24,389       86,091       68,002  
Non-operating (income) expense:
                               
Interest income
    (1,509 )     (1,650 )     (5,803 )     (3,658 )
Interest expense
    3,937       1,264       14,463       2,333  
Net foreign currency exchange loss (gain)
    849       (214 )     (2,807 )     (190 )
Other expense, net
    428       422       1,141       742  
 
                       
Earnings from continuing operations before income taxes
    15,321       24,567       79,097       68,775  
Income tax expense
    6,225       7,857       30,896       23,454  
 
                       
Net earnings from continuing operations
    9,096       16,710       48,201       45,321  
Net earnings from discontinued operations
          530       4,972       12,630  
 
                       
Net earnings
  $ 9,096     $ 17,240     $ 53,173     $ 57,951  
 
                       
 
                               
Net earnings per share — Basic:
                               
Net earnings from continuing operations
  $ 0.18     $ 0.35     $ 0.98     $ 0.94  
Net earnings from discontinued operations
          0.01       0.10       0.26  
 
                       
Net earnings per share
  $ 0.18     $ 0.36     $ 1.08     $ 1.20  
 
                       
 
                               
Net earnings per share — Diluted:
                               
Net earnings from continuing operations
  $ 0.18     $ 0.34     $ 0.97     $ 0.94  
Net earnings from discontinued operations
          0.01       0.10       0.26  
 
                       
Net earnings per share
  $ 0.18     $ 0.35     $ 1.07     $ 1.20  
 
                       
 
                               
Shares used in per share calculations:
                               
Basic
    49,530       48,411       49,213       48,230  
 
                       
Diluted
    50,711       48,658       49,801       48,375  
 
                       
                 
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Insight Enterprises, Inc.   1305 West Auto Drive   Tempe, Arizona 85284   480-902-1001   FAX 480-760-8958

 


 

     
Insight Q3 2007 Results, Page 7   November 1, 2007
INSIGHT ENTERPRISES, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(In thousands)
(Unaudited)
                 
    September 30,     December 31,  
    2007     2006  
ASSETS
               
Current assets:
               
Cash and cash equivalents
  $ 53,086     $ 54,697  
Accounts receivable, net
    814,444       994,892  
Inventories
    102,232       97,751  
Inventories not available for sale
    17,414       31,112  
Deferred income taxes
    19,550       20,770  
Other current assets
    20,508       32,359  
 
           
Total current assets
    1,027,234       1,231,581  
 
               
Property and equipment, net
    156,893       145,778  
Goodwill
    305,006       296,781  
Intangible assets, net
    82,276       86,929  
Deferred income taxes
    396       927  
Other long-term assets
    18,832       18,269  
 
           
 
  $ 1,590,637     $ 1,780,265  
 
           
 
               
LIABILITIES AND STOCKHOLDERS’ EQUITY
               
Current liabilities:
               
Accounts payable
  $ 477,322     $ 611,367  
Accrued expenses and other current liabilities
    93,385       136,401  
Current portion of long-term debt
    15,000       15,000  
Deferred revenue
    25,697       40,728  
Line of credit
          15,000  
 
           
Total current liabilities
    611,404       818,496  
 
               
Long-term debt
    152,000       224,250  
Long-term deferred income taxes
    26,121       25,517  
Other long-term liabilities
    28,911       21,652  
 
           
 
    818,436       1,089,915  
 
           
 
               
Stockholders’ equity:
               
Preferred stock
           
Common stock
    495       489  
Additional paid-in capital
    391,571       363,308  
Retained earnings
    335,219       297,664  
Accumulated other comprehensive income – foreign currency translation adjustment
    44,916       28,889  
 
           
Total stockholders’ equity
    772,201       690,350  
 
           
 
  $ 1,590,637     $ 1,780,265  
 
           
                 
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Insight Enterprises, Inc.   1305 West Auto Drive   Tempe, Arizona 85284   480-902-1001   FAX 480-760-8958

 


 

     
Insight Q3 2007 Results, Page 8   November 1, 2007
INSIGHT ENTERPRISES, INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
                 
    Nine Months Ended  
    September 30,  
    2007     2006  
Cash flows from operating activities:
               
Net earnings from continuing operations
  $ 48,201     $ 45,321  
Plus: net earnings from discontinued operations
    4,972       12,630  
 
           
Net earnings
    53,173       57,951  
Adjustments to reconcile net earnings to net cash provided by operating activities:
               
Depreciation and amortization
    25,960       14,819  
Provision for losses on accounts receivable
    1,725       2,101  
Write-downs of inventories
    5,744       6,892  
Non-cash stock-based compensation
    8,927       10,101  
Gain on sale of discontinued operations
    (7,937 )     (15,122 )
Excess tax benefit from employee gains on stock-based compensation
    (445 )     (1,035 )
Deferred income taxes
    2,355       22,035  
Changes in assets and liabilities:
               
Decrease (increase) in accounts receivable
    186,033       (10,538 )
(Increase) decrease in inventories
    (2,509 )     25,399  
Decrease (increase) in other current assets
    12,704       (16,627 )
Increase in other assets
    (1,944 )     (20,953 )
(Decrease) increase in accounts payable
    (142,794 )     20,885  
Decrease in inventories financing facility
          (11,819 )
Decrease in deferred revenue
    (15,175 )     (3,193 )
(Decrease) increase in accrued expenses and other liabilities
    (26,788 )     24,762  
 
           
Net cash provided by operating activities
    99,029       105,658  
 
           
Cash flows from investing activities:
               
Proceeds from sale of discontinued operations
    28,631       46,500  
Acquisition of Software Spectrum, net of cash acquired
          (323,009 )
Purchases of property and equipment
    (27,611 )     (26,383 )
 
           
Net cash provided by (used in) investing activities
    1,020       (302,892 )
 
           
Cash flows from financing activities:
               
Repayments on short-term financing facility
          (45,000 )
Borrowings on long-term financing facility
    540,000       202,000  
Repayments on long-term financing facility
    (601,000 )     (20,000 )
Borrowings on term loan
          75,000  
Repayments on term loan
    (11,250 )      
(Repayments) borrowings on line of credit
    (15,000 )     691  
Excess tax benefit from employee gains on stock-based compensation
    445       1,035  
Proceeds from sales of common stock under employee stock plans
    24,342       14,140  
Repurchase of common stock
    (22,336 )      
Decrease in book overdrafts
    (23,856 )      
 
           
Net cash (used in) provided by financing activities
    (108,655 )     227,866  
 
           
Net cash provided by discontinued operations
          129  
 
           
Foreign currency exchange effect on cash flow
    6,995       5,165  
 
           
(Decrease) increase in cash and cash equivalents
    (1,611 )     35,296  
Cash and cash equivalents at beginning of period
    54,697       35,145  
 
           
Cash and cash equivalents at end of period
  $ 53,086     $ 71,071  
 
           
                 
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Insight Enterprises, Inc.   1305 West Auto Drive   Tempe, Arizona 85284   480-902-1001   FAX 480-760-8958

 


 

     
Insight Q3 2007 Results, Page 9   November 1, 2007
Insight Enterprises, Inc. and Subsidiaries
Quarterly Select Operating Segment Statistics
(UNAUDITED)
                         
    Three Months Ended        
    September 30,        
North America   2007     2006     Change  
Number of shipping days
    63       63        
Number of account executives
    1,362       1,033  (c)     32 %
Net sales per account executive (a)
  $ 606,188     $ 613,175  (c)     (1 %)
Gross profit per account executive (b)
  $ 80,814     $ 81,814  (c)     (1 %)
Sales mix (as a % of net sales):
                       
Notebooks and PDA’s
    12 %     13 %     10 % (d)
Desktops and servers
    12 %     14 %         (d)
Networking and connectivity
    12 %     13 %     7 % (d)
Storage devices
    6 %     8 %     (12 %)(d)
Printers
    6 %     7 %     5 % (d)
Memory and processors
    4 %     5 %     1 % (d)
Supplies and accessories
    4 %     6 %     (14 %)(d)
Monitors and video
    5 %     5 %     21 % (d)
Miscellaneous
    7 %     7 %     31 % (d)
 
                   
Hardware
    68 %     78 %     5 % (d)
Software
    29 %     20 %     64 % (d)
Services
    3 %     2 %     42 % (d)
 
                   
 
    100 %     100 %        
 
                   
 
                       
EMEA
                       
Number of shipping days(e)
    64       64        
Number of account executives
    530       291  (c)     82 %
Net sales per account executive (a)
  $ 517,457     $ 446,166  (c)     16 %
Gross profit per account executive (b)
  $ 69,823     $ 63,929  (c)     9 %
Sales mix (as a % of net sales):
                       
Notebooks and PDA’s
    11 %     15 %     26 % (d)
Desktops and servers
    9 %     12 %     24 % (d)
Networking and connectivity
    5 %     7 %     14 % (d)
Storage devices
    4 %     7 %     12 % (d)
Printers
    4 %     6 %     (2 %)(d)
Memory and processors
    2 %     3 %         (d)
Supplies and accessories
    4 %     6 %     12 % (d)
Monitors and video
    5 %     7 %     19 % (d)
Miscellaneous
    3 %     5 %     16 % (d)
 
                   
Hardware
    47 %     68 %     16 % (d)
Software
    52 %     31 %     183 % (d)
Services
    1 %     1 %     226 % (d)
 
                   
 
    100 %     100 %        
 
                   
 
(a)   Calculated as net sales for the quarter divided by the average number of account executives. The average number of account executives is calculated as the number of account executives at the end of the quarter plus the number of account executives at the beginning of the quarter divided by two.
 
(b)   Calculated as gross profit for the quarter divided by the average number of account executives. The average number of account executives is calculated as the number of account executives at the end of the quarter plus the number of account executives at the beginning of the quarter divided by two.
 
(c)   Excludes Software Spectrum account executives and 23 calendar days of Software Spectrum’s results during the three months ended September 30, 2006.
 
(d)   Represents growth/decline in category net sales.
 
(e)   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 Q3 2007 Results, Page 10   November 1, 2007
INSIGHT ENTERPRISES, INC. AND SUBSIDIARIES
Operating Segment Statement of Earnings Information
(In thousands)
(unaudited)
                                 
    Three Months Ended September 30, 2007  
    North America     EMEA     APAC     Consolidated  
Net sales
  $ 817,747     $ 264,679     $ 27,279     $ 1,109,705  
Costs of goods sold
    708,729       228,965       22,165       959,859  
 
                       
Gross profit
    109,018       35,714       5,114       149,846  
Operating expenses:
                               
Selling and administrative expenses
    93,742       33,165       3,913       130,820  
 
                       
Earnings from operations
  $ 15,276     $ 2,549     $ 1,201       19,026  
 
                         
Non-operating expense, net
                            3,705  
 
                             
Earnings from continuing operations before income taxes
                            15,321  
Income tax expense
                            6,225  
 
                             
Net earnings from continuing operations
                            9,096  
Net earnings from discontinued operations
                             
 
                             
Net earnings
                          $ 9,096  
 
                             
 
                               
Total assets
  $ 2,198,755     $ 393,211     $ 39,393     $ 1,590,637 *
 
                       
 
*   Consolidated total assets include corporate assets and intercompany eliminations for a net reduction of $1,040,722.
                                 
    Nine Months Ended September 30, 2007  
    North America     EMEA     APAC     Consolidated  
Net sales
  $ 2,518,847     $ 923,958     $ 74,324     $ 3,517,129  
Costs of goods sold
    2,163,724       804,733       60,838       3,029,295  
 
                       
Gross profit
    355,123       119,225       13,486       487,834  
Operating expenses:
                               
Selling and administrative expenses
    289,605       98,646       10,651       398,902  
Severance and restructuring expenses
    2,841                   2,841  
 
                       
Earnings from operations
  $ 62,677     $ 20,579     $ 2,835       86,091  
 
                         
Non-operating expense, net
                            6,994  
 
                             
Earnings from continuing operations before income taxes
                            79,097  
Income tax expense
                            30,896  
 
                             
Net earnings from continuing operations
                            48,201  
Net earnings from discontinued operations
                            4,972  
 
                             
Net earnings
                          $ 53,173  
 
                             
 
                               
Total assets
  $ 2,198,755     $ 393,211     $ 39,393     $ 1,590,637 *
 
                       
 
*   Consolidated total assets include corporate assets and intercompany eliminations for a net reduction of $1,040,722.
                 
- MORE -
                 
Insight Enterprises, Inc.   1305 West Auto Drive   Tempe, Arizona 85284   480-902-1001   FAX 480-760-8958

 


 

     
Insight Q3 2007 Results, Page 11   November 1, 2007
INSIGHT ENTERPRISES, INC. AND SUBSIDIARIES
Operating Segment Statement of Earnings Information (continued)
(In thousands)
(unaudited)
                                 
    Three Months Ended September 30, 2006  
    North America     EMEA     APAC     Consolidated  
Net sales
  $ 694,284     $ 157,115     $ 6,520     $ 857,919  
Costs of goods sold
    603,360       135,702       5,528       744,590  
 
                       
Gross profit
    90,924       21,413       992       113,329  
Operating expenses:
                               
Selling and administrative expenses
    70,023       17,481       707       88,211  
Severance and restructuring expense
    508       221             729  
 
                       
Earnings from operations
  $ 20,393     $ 3,711     $ 285       24,389  
 
                         
Non-operating income, net
                            (178 )
 
                             
Earnings from continuing operations before income taxes
                            24,567  
Income tax expense
                            7,857  
 
                             
Net earnings from continuing operations
                            16,710  
Net earnings from discontinued operations
                            530  
 
                             
Net earnings
                          $ 17,240  
 
                             
 
                               
Total assets
  $ 1,909,860     $ 327,299     $ 32,466     $ 1,536,585 *
 
                       
 
*   Consolidated total assets include corporate assets and intercompany eliminations for a net reduction of $733,040.
                                 
    Nine Months Ended September 30, 2006  
    North America     EMEA     APAC     Consolidated  
Net sales
  $ 1,972,186     $ 392,383     $ 6,520     $ 2,371,089  
Costs of goods sold
    1,717,031       335,949       5,528       2,058,508  
 
                       
Gross profit
    255,155       56,434       992       312,581  
Operating expenses:
                               
Selling and administrative expenses
    197,105       46,038       707       243,850  
Severance and restructuring expenses
    508       221             729  
 
                       
Earnings from operations
  $ 57,542     $ 10,175     $ 285       68,002  
 
                         
Non-operating income, net
                            (773 )
 
                             
Earnings from continuing operations before income taxes
                            68,775  
Income tax expense
                            23,454  
 
                             
Net earnings from continuing operations
                            45,321  
Net earnings from discontinued operation
                            12,630  
 
                             
Net earnings
                          $ 57,951  
 
                             
 
                               
Total assets
  $ 1,909,860     $ 327,299     $ 32,466     $ 1,536,585 *
 
                       
 
*   Consolidated total assets include corporate assets and intercompany eliminations for a net reduction of $733,040.
                 
- ### -
                 
Insight Enterprises, Inc.   1305 West Auto Drive   Tempe, Arizona 85284   480-902-1001   FAX 480-760-8958