PC Connection’s Sales Fall 10%

Information technology products merchant PC Connection saw its fourth-quarter and 12-month sales fall for the period ended Dec. 31. Net sales for the quarter decreased 10%, to $439.1 million and slipped 2%, to $1.75 billion for the fiscal year.

Fourth-quarter net income plummeted nearly 70%, to $1.9 million, down from $6.2 million for the same period in 2007. PC Connection’s net income for the fiscal year fell 35%, to $15 million, compared with $23 million last year.

PC Connection chairman/CEO Patricia Gallup said in a release: “Our results for the quarter reflected the decline in demand for IT products. Customers are taking a wait-and-see attitude toward IT spending as they try to determine what their own demand, technology budgets, and staffing levels will be for the year.”

PC Connection’s Net Income Drops 83%

Merrimack, NH—Poor PC Connection. The computer reseller’s (Nasdaq: PCCC) profits have taken a nosedive. Net income for its quarter ended June 30 was $1.4 million, down 83% from earnings of $8.6 million last year. What’s more, the marketer posted a 19% decline in net sales for the three months ended June 30, to $297.3 million, compared to $366.1 million for the comparable period last year. Internet sales (those processed directly online) during the period increased a scant 2% to $26.1 million, compared to $25.5 million in the corresponding period a year ago. PC Connection attributes the shortfalls to continued weak demand and pricing pressure in the technology industry, said CEO Ken Koppel in a statement.