Insight Enterprises, Inc. Reports Preliminary First Quarter 2013 Results
TEMPE, Ariz., April 18, 2013 (GLOBE NEWSWIRE) -- Insight Enterprises, Inc.
(Nasdaq:NSIT) (the "Company") today reported that net sales for the quarter
ended March 31, 2013 are expected to be approximately $1.2 billion,
representing a decrease of approximately 5% from the first quarter of 2012.
Net sales for the first quarter are expected to be approximately $747 million,
$387 million and $48 million in North America, EMEA and APAC,
respectively.Earnings from operations for the first quarter are expected to
decline to approximately $17 million, excluding severance and restructuring
expenses. Diluted earnings per share, before severance and restructuring
expenses, are expected to be between $0.22 and $0.27 per share.These results
include an estimated effective tax rate of 28%, which includes certain tax
benefits recorded during the quarter.
The results for the quarter are expected to include approximately $2.7
million, $1.9 million net of tax, of severance and restructuring expenses
related to the elimination of certain positions based on a re-alignment of
roles and responsibilities.
These first quarter results were primarily driven by (1) lower than expected
revenues in North America, and (2) a decrease in gross margin of approximately
190 basis points in EMEA.
"Our first quarter financial results were weaker than expected as we
continued to experience lower volume in the large enterprise space in North
America, which significantly impacted our financial performance during the
quarter.While EMEA grew top line revenue, gross margin declined due to
changes in business and client sales mix in the quarter," commented Ken
Lamneck, President and Chief Executive Officer."Given our recent performance,
we are evaluating opportunities to improve our operational and financial
performance in North America and EMEA; however, we remain committed to our
long-term strategy to expand our capabilities and to invest in key markets,"
No conference call will be held in conjunction with the release of these
preliminary financial results. The Company will have no further comment until
May 1, 2013, when the Company will issue its press release with full financial
results for the first quarter and its updated guidance for the remainder of
2013.The Company will host a conference call at 5:00pm ET on Wednesday, May
1, 2013.The conference call will be webcast live, and the live call and
related replays of the conference will be accessible online through the
investor relations section of the Company's website, insight.com, at:
The information contained in this release is as of the date of this release.
The Company cautions that its anticipated net sales, earnings from operations,
earnings per share, margins, severance and restructuring expenses, segment
results and effective tax rate are forward-looking statements, are
preliminary, are based on the best information currently available, and are
subject to completion of the financial statements for the first quarter of
2013.Actual results could differ materially. Among the factors that could
cause actual results to differ materially from projected future results are
that the process of closing the Company's books for the first quarter of 2013
is not yet complete and the review by the Company's auditors is in
process.The Company assumes no obligation to update forward-looking
statements contained in this release as a result of new information or future
events or developments. NSIT-F
CONTACT: GLYNIS BRYAN
CHIEF FINANCIAL OFFICER
SENIOR VP, TREASURER
Insight Enterprises, Inc. Logo
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