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Dec 31, 2020
PC Connection Q4 2020 Earnings Report
PC Connection's Q4 2020 earnings decreased due to the impact of the COVID-19 pandemic and supply chain constraints.
Key Takeaways
PC Connection reported a decrease in net sales by 5.7% to $675.7 million and a decrease in net income by 25.8% to $16.3 million, or $0.62 per diluted share, compared to the prior year quarter. The reduction in revenue year over year is primarily due to the continuing impact of the COVID-19 pandemic in Enterprise and supply chain constraints.
Net sales decreased by 5.7% to $675.7 million compared to the prior year quarter.
Net income decreased by 25.8% to $16.3 million, or $0.62 per diluted share, compared to the prior year quarter.
Business and Public Sector Solutions segments experienced year-over-year revenue growth.
Greater than 20% growth was experienced in both SLED and the manufacturing vertical market.
Revenue by Segment
Forward Guidance
The company is optimistic about 2021 and looks forward to continuing to deliver the value-added services and products that enable its customers to transform their businesses. Current momentum is expected to continue in the months ahead.
Positive Outlook
- Continued recovery trend in business conditions.
- Solid demand in mobility, security, software, and managed services.
- Greater than 20% growth in both SLED and the manufacturing vertical market.
- Manufacturers are using technology to drive top and bottom line growth.
- Strong demand associated with business resiliency and security solutions.
Challenges Ahead
- The pandemic had a significant impact on the business in 2020.
- Year-over-year revenue growth in Business and Public Sector Solutions segments was offset by a decline in Enterprise Solutions.
- Increase in SG&A was primarily due to an increase in costs associated with our new ERP system, costs associated with the creation of our new Technical Sales Organization and one-time legal fees.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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