XML 34 R24.htm IDEA: XBRL DOCUMENT v3.19.2
SEGMENT REPORTING
 3 Months Ended
Jun. 30, 2019
SEGMENT REPORTING [Abstract]  
SEGMENT REPORTING
17.  SEGMENT REPORTING

Our operations are conducted through two operating segments that are also both reportable segments. Our technology segment includes sales of IT products, third-party software, third-party maintenance, advanced professional and managed services, and our proprietary software to commercial enterprises, state and local governments, and government contractors. Our financing segment consists of the financing of IT equipment, software, and related services to commercial enterprises, state and local governments, and government contractors. We measure the performance of the segments based on operating income.

Our reportable segment information was as follows (in thousands):


  
Three Months Ended
  
   
June 30, 2019
    
June 30, 2018
  
   
Technology
    
Financing
    
Total
    
Technology
    
Financing
    
Total
  
                                     
Sales
                                    
Product
  
$
322,764
    
$
12,837
    
$
335,601
    
$
313,149
    
$
9,668
    
$
322,817
  
Service
    
45,771
      
-
      
45,771
      
33,715
      
-
      
33,715
  
Net sales
  
$
368,535
    
$
12,837
    
$
381,372
    
$
346,864
    
$
9,668
    
$
356,532
  
                                                 
Cost of Sales
                                                
Product
    
258,054
      
2,009
      
260,063
      
254,064
      
1,748
      
255,812
  
Service
    
28,670
      
-
      
28,670
      
20,017
      
-
      
20,017
  
Total cost of sales
    
286,724
      
2,009
      
288,733
      
274,081
      
1,748
      
275,829
  
Gross Profit
    
81,811
      
10,828
      
92,639
      
72,783
      
7,920
      
80,703
  
                                                 
Selling, general, and administrative
    
62,667
      
3,120
      
65,787
      
54,454
      
2,512
      
56,966
  
Depreciation and amortization
    
3,407
      
56
      
3,463
      
2,789
      
1
      
2,790
  
Interest and financing costs
    
-
      
628
      
628
      
-
      
476
      
476
  
Operating expenses
    
66,074
      
3,804
      
69,878
      
57,243
      
2,989
      
60,232
  
                                                 
Operating income
    
15,737
      
7,024
      
22,761
      
15,540
      
4,931
      
20,471
  
                                                 
Other income (expense)
                    
(45
)
                    
97
  
                                                 
Earnings before tax
                  
$
22,716
                    
$
20,568
  
                                                 
Net Sales
                                                
Contracts with customers
  
$
363,681
    
$
789
    
$
364,470
    
$
341,459
    
$
596
    
$
342,055
  
Financing and other
    
4,854
      
12,048
      
16,902
      
5,405
      
9,072
      
14,477
  
Net Sales
  
$
368,535
    
$
12,837
    
$
381,372
      
346,864
    
$
9,668
    
$
356,532
  
                                                 
Selected Financial Data - Statement of Cash Flow
                                                
                                                 
Depreciation and amortization
  
$
1,339
    
$
3,625
    
$
4,964
    
$
3,015
    
$
1,485
    
$
4,500
  
Purchases of property, equipment and operating lease equipment
  
$
1,249
    
$
269
    
$
1,518
    
$
1,180
    
$
450
    
$
1,630
  
                                                 
Selected Financial Data - Balance Sheet
                                                
                                                 
Total assets
  
$
658,692
    
$
216,121
    
$
874,813
    
$
557,864
    
$
202,535
    
$
760,399
  


Technology Segment Disaggregation of Revenue

We analyze net sales for our technology segment by customer end market and by vendor, as opposed to discrete product and service categories, which are summarized below (in thousands):


  
Three Months Ended
June 30,
  
   
2019
    
2018
  
Customer end market:
            
Technology
  
$
76,180
    
$
82,817
  
Telecom, Media & Entertainment
    
62,466
      
46,868
  
Financial Services
    
48,241
      
45,225
  
SLED
    
71,190
      
68,205
  
Healthcare
    
56,109
      
46,450
  
All others
    
54,349
      
57,299
  
Net sales
    
368,535
      
346,864
  
                 
Financing and other
    
(4,854
)
    
(5,405
)
                 
Revenue from contracts with customers
  
$
363,681
    
$
341,459
  


 
Three Months Ended
June 30,
  
   
2019
    
2018
  
Vendor
            
Cisco Systems
  
$
146,181
    
$
139,577
  
NetApp
    
13,427
      
15,020
  
HP Inc. & HPE
    
23,113
      
20,355
  
Dell / EMC
    
13,781
      
12,503
  
Arista Networks
    
20,950
      
19,844
  
Juniper Networks
    
7,054
      
10,431
  
All others
    
144,029
      
129,134
  
Net sales
    
368,535
      
346,864
  
                 
Financing and other
    
(4,854
)
    
(5,405
)
                 
Revenue from contracts with customers
  
$
363,681
    
$
341,459
  

Financing Segment Disaggregation of Revenue

We analyze our revenues within our financing segment based on the nature of the arrangement, and our revenues from contracts with customers consist of proceeds from the sale of off-lease equipment.