Thursday, ScanSource, Inc. (SCSC), a provider of voice, video and converged communications equipments; reported that its profit for the second quarter declined from the previous year quarter.
The company recorded second quarter net income of $11.8 million or $0.44 per share, compared to $13.5 million or $0.51 per share in the prior year period.
ScanSource noted that year-ago results include a $3.5 million recovery related to the settlement of a legal claim against a former service provider.
On average, five analysts polled by Thomson Reuters expected the company to report earnings of $0.44 per share. Analysts' estimates typically exclude special items.
Net sales for the quarter were $548.1 million, compared to $477.0 million in the previous year period. Five analysts expected revenues of $518.82 million.
The results for the quarter also include one month's business from newly acquired communications unit in Germany, formerly known as Algol Europe. Quarterly operating income decreased by 1.4% to $18.1 million from $18.4 million in the year ago quarter, while operating margin decreased to 3.31% from 3.86% . The decrease in operating income margin was largely due to higher bad debt expense recognized during the current quarter.
Net income for the six months was $22.75 million or $0.85 per share, compared to $25.95 million or $0.98 per share for the previous year period. Net sales for the six-month period were $1.04 billion, compared to $1.02 billion for the previous year period.
Looking ahead to the third quarter, ScanSource expects net revenues to range from $535 million to $555 million. Street analysts expect revenues of $484.94 million for the third quarter.
SCSC closed Thursday's regular trading at $27.06 down $0.41 1.49% on the Nasdaq.
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