ePlus Inc. reported its financial results for the three and six months ended September 30, 2024, revealing a decline in net sales and net earnings compared to the same periods in 2023. For the three months ended September 30, 2024, net sales totaled $515.2 million, down from $587.6 million in the prior year. Similarly, net sales for the six months decreased to $1.06 billion from $1.16 billion in 2023. The decline in product sales, which fell to $411.5 million from $516.6 million year-over-year, significantly impacted overall revenue. However, service sales increased to $103.7 million from $71.0 million, indicating a shift in revenue sources.
Despite the drop in sales, ePlus reported a slight increase in gross profit for the three months, rising to $148.0 million from $144.4 million, while gross profit for the six months decreased to $282.5 million from $286.6 million. Operating income for the three months was $42.7 million, down from $44.9 million, and for the six months, it fell to $78.2 million from $91.2 million. Net earnings for the three months were $31.3 million, a decrease from $32.7 million, and for the six months, net earnings dropped to $58.6 million from $66.5 million. Basic earnings per share for the three months were $1.18, down from $1.23, and for the six months, it decreased to $2.20 from $2.50.
The company’s total assets increased to $1.70 billion as of September 30, 2024, compared to $1.65 billion at the end of the previous fiscal period. Total stockholders’ equity also rose to $947.0 million from $901.8 million. Cash and cash equivalents, however, decreased significantly to $187.5 million from $253.0 million.
Strategically, ePlus made notable acquisitions, including the purchase of Bailiwick Services, LLC for $124.9 million on August 19, 2024, which added $41.6 million in goodwill. The company also acquired Network Solutions Group in April 2023, contributing to its service offerings. The impact of these acquisitions on revenue and earnings has been described as not material.
ePlus continues to navigate market conditions, with Cisco Systems accounting for 37% of its technology business net sales for both the three and six months ended September 30, 2024, down from 53% and 49%, respectively, in the prior year. The company is also evaluating new accounting pronouncements that may affect its reporting in future periods.
About EPLUS INC
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