Financial Reports: PC Connection, Transcat, Zones

Sales, Net Income Up for PC Connection
Information technology products merchant PC Connection improved its fourth-quarter and 12-month sales over the previous periods. Net sales for the three months ended Dec. 31 increased 13% to $489.6 million from the same period last year.

The company’s net income for the quarter was $6.2 million, a 35% increase over the $4.6 million for the corresponding prior year quarter. PC Connection also achieved a 29% increase in operating income and a 35% increase in earnings per share over the fourth quarter of 2006.

Net sales for the small- and medium-sized business segment increased by 14% to $263.8 million compared to the fourth quarter of 2006. Net sales for MoreDirect, PC Connection’s large account segment, increased by 6% to $140.8 million compared to the fourth quarter of 2006. Net sales for the public sector segment, GovConnection, increased 25% to $85.0 million compared to the fourth quarter of 2006.

Products and Services Segments Give Transcat a Boost
Sales at test, measurement, and calibration instruments distributor Transcat increased 7% to $18.4 million for its fiscal third quarter, which ended Dec. 29. But net income was flat for the quarter at $1.2 million.

The Rochester, NY-based company said its products segment contributed 59%, or $0.7 million, of the increase. The services segment contributed the remaining 41%, or $0.5 million, of the sales increase.

“Both the products and services segments are demonstrating the results of our sales initiatives and investments made to drive profitable sales growth,” president/CEO Charles P. Hadeed said in a statement. “We believe that our strategic advantage in the test and measurement industry is our ability to provide a broad variety of premium branded products, high quality calibration services and consultative sales expertise to meet our customers’ test and measurement needs.”

Good Growth for Zones
Computer reseller Zones reported solid fourth-quarter results, not to mention a good year. The company’s net sales for the fourth quarter were $176.1 million, compared to $159.9 million in same period last year. Net sales for the year ended Dec. 31 increased 18% to $679.5 million, up from $577.0 million the year prior.

“During 2007 we invested in the development of a national field sales force which we believe holds significant promise as a foundation for future sustained growth,” said Zones CEO Firoz Lalji in a press release.