ScanSource, Inc. reported its financial results for the quarter ending March 31, 2025, revealing a decline in both revenue and profitability compared to the same period last year. The company generated net sales of $704.8 million, a decrease of 6.4% from $752.6 million in the prior year. For the nine months ending March 31, 2025, net sales totaled $2.23 billion, down 11.0% from $2.51 billion. The company's net income for the quarter was $17.4 million, or $0.74 per diluted share, compared to $12.8 million, or $0.50 per diluted share, in the same quarter of the previous year. The nine-month net income also saw a decline, totaling $51.5 million compared to $61.0 million in the prior year.
The decrease in revenue was primarily attributed to lower sales in the Specialty Technology Solutions segment, which reported a 7.0% decline in net sales for the quarter and an 11.9% decline for the nine months. This segment's performance was negatively impacted by reduced demand in Brazil, although North American sales showed some growth in various technologies. Conversely, the Intelisys & Advisory segment experienced a 16.0% increase in net sales for the quarter, driven by the acquisition of Resourcive and growth in net billings.
In terms of operational developments, ScanSource completed two significant acquisitions in August 2024, acquiring Resourcive and Advantix, which are expected to enhance its service offerings in technology advisory and managed connectivity solutions. The company also executed restructuring programs aimed at aligning its cost structure with demand expectations, which are projected to yield approximately $10.5 million in annualized savings. As of March 31, 2025, ScanSource had 22,894,413 shares of common stock outstanding, reflecting a reduction from the previous year due to share repurchase activities.
Looking ahead, ScanSource's management expressed caution regarding the macroeconomic environment, including inflation and tariffs, which could impact customer demand and operational performance. The company is actively monitoring these conditions and plans to pass on any supplier price increases to customers. Despite the challenges, ScanSource aims to leverage its acquisitions and operational efficiencies to drive future growth and maintain financial flexibility. The company expects to continue focusing on its hybrid distribution strategy, which integrates hardware, software, and cloud services to meet evolving customer needs.
About SCANSOURCE, INC.
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