Net Income Falls 25% at PC Connection

Strong year-over-year sales growth in large accounts was offset by softness in small, midsize, and public sector segments at Merrimack, NH-based computer reseller PC Connection (Nasdaq:PCCC).

Net sales for the three months ended March 31 decreased 1% to $323.9 million from $327.6 million last year. Net income fell 25% to $900,000 compared to $1.2 million last year.

Net sales for our commercial business was up 1.1% to $276.7 million, compared to $273.8 million in the first quarter of 2004. Net sales to small and midsize businesses fell 3% to $200.3 million. Sales to large account customers increased 15% to $76.4 million. Sales to government and education—the company’s public sector—sank 12% to $47.2 million.