SCANSOURCE, INC. (Form 10-Q)
ScanSource, Inc. (SCSC) filed its quarterly report for the period ended December 31, 2024. The company reported net sales of $1.23 billion, a 4.5% increase from the same period last year. Gross profit was $243.8 million, a 5.1% increase, while operating income was $34.1 million, a 10.3% increase. Net income was $23.4 million, a 12.5% increase. The company’s cash and cash equivalents decreased by $14.1 million to $143.8 million, while its total debt increased by $10.5 million to $143.8 million. As of January 27, 2025, the company had 23,463,543 shares of common stock outstanding.
Overview
ScanSource is a leading hybrid distributor connecting devices to the cloud and accelerating growth for customers and channel partners across hardware, software as a service (“SaaS”), and connectivity and cloud services. ScanSource uses multiple sales models to offer hybrid distribution solutions from leading suppliers of specialty technologies and connectivity and cloud services. The Company operates primarily in the United States, Canada and Brazil.
ScanSource operates its business under a management structure that enhances its specialty technology focus and hybrid distribution growth strategy. The company’s segments operate primarily in the United States, Canada and Brazil and are based on sales models:
• Specialty Technology Solutions • Intelisys & Advisory
ScanSource offers hardware, SaaS, and connectivity and cloud services from leading technology suppliers to customers and channel partners enabling solutions for users’ needs and challenges. The company operates distribution facilities that support its United States and Canada business in Mississippi, California and Kentucky, and its Brazil distribution facilities are located in the Brazilian states of Paraná, Espirito Santo and Santa Catarina. ScanSource also provides some of its digital products, which include SaaS and subscriptions, through its digital tools and platforms.
Recent Developments
In August 2024, ScanSource completed the acquisitions of Resourcive, a leading technology advisor, and Advantix, a managed connectivity experience provider. In September 2024, the company executed a cost reduction and restructuring program to align its cost structure with demand expectations in its hardware business.
Strategy
ScanSource’s strategy is to drive sustainable, profitable growth by orchestrating hybrid technology solutions through a growing ecosystem of partners by leveraging its people, processes and tools. The company’s goal is to provide exceptional experiences for its customers, suppliers and employees through operational excellence. ScanSource’s hybrid distribution strategy utilizes multiple sales models to offer hardware, SaaS, and connectivity and cloud services from leading technology suppliers to customers that solve end-users’ challenges. The company plans to continue expanding its investments in the agency channel in the near term.
