Annual net income at Merrimack, NH-based PC Connection more than tripled, to $13.8 million for the year ended Dec. 31, 2006. For the year ended Dec. 31, 2005, the company’s net income had been $4.4 million. Net sales for the year rose 13%, to $1.63 billion from $1.44 billion the previous year.
For the fourth quarter, the computer reseller’s sales rose 8%, to $431.9 million from $398.6 million in 2005. Sales for the fourth-quarter and full-year 2006 included revenue generated by former sales representatives of Amherst Technologies — a Manchester, NH-based IT solutions provider acquired for $7.8 million in cash in October 2005 — after they joined the company. Fourth-quarter net income was $4.6 million, a significant jump after last year’s break-even effort in the corresponding three-month period. For the year, gross profit margins increased 12% in all segments.
“We are pleased with the company’s 2006 performance for both the fourth quarter and the year,” said CEO Patricia Gallup in a statement. “We added significantly to the number of new and active accounts, improved gross margins, and increased our earnings per share. PC Connection’s 2006 financial results are encouraging. Overall sales were at the highest level in the company’s history, and our operating margins continued to improve.”