8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): August 22, 2013

SCANSOURCE INC

(Exact name of registrant as specified in its charter)

Commission File Number: 000-26926

SC	57-0965380
(State or other jurisdiction of incorporation)	(IRS Employer Identification No.)

6 Logue Court, Greenville, SC 29615

(Address of principal executive offices, including zip code)

864-288-2432

(Registrant’s telephone number, including area code)

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02. Results of Operations and Financial Condition

On August 22, 2013, ScanSource, Inc. issued a press release announcing its financial results for its fourth quarter and year ended June 30, 2013. A copy of the press release and accompanying presentation slides are attached as Exhibit 99.1 and 99.2 hereto and incorporated herein by reference and also made available through the Company’s website at www.scansourceinc.com.

The information in Items 2.02 and 9.01 of this Current Report on Form 8-K, including the exhibit, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act.

Item 2.06. Material Impairments

In fiscal year 2009, the Company began developing a standardized enterprise resource planning ("ERP") system based on Microsoft Dynamics AX software. The ERP system was intended to provide operational efficiencies, including the use of a common system throughout the world. In January 2013, the Company filed a lawsuit against its former ERP software systems integration partner, Avanade, Inc. (“Avanade”). The lawsuit alleges, among other things, fraud, tortious misrepresentation and breach of contract on the part of Avanade in connection with its performance on the ERP project and the Company is seeking recovery of damages. The Company engaged a new systems integration partner, Tata Consultancy Services (“TCS”), to replace Avanade. In March 2013, TCS presented an integrated project plan that included the time and costs to complete the project. This plan indicated that the effort remaining was going to approach the $72 million upper end of the Company's previously-disclosed total project cost range with no assurance the system would be successful. In April 2013, the Company moved a significant number of its team members who were working on the ERP project back into business roles and began evaluating alternatives for next steps.

In the current quarter, the ERP team has been focused on working with Microsoft Consulting on alternative options to facilitate completion of the project. Additionally, the ERP team met with other software vendors for an understanding of how their software would meet the needs of the Company. At this time, there is not a viable plan to complete and use the software development of the 2009 Microsoft Dynamics AX-based ERP project.

Based on the above factors, in connection with the preparation and review of the financial statements for the quarter ended June 30, 2013, the Company reviewed the ERP project from an accounting impairment perspective and the Board of Directors approved Management's recommendation on August 20, 2013, that the software is impaired. As of June 30, 2013, the Company wrote off almost all of the total capitalized costs related to its ERP project. The non-cash charge totaled $28.2 million pre-tax ($18.0 million after-tax), which included software development costs, hardware, software interfaces and other related costs. Despite the impairment of the ERP software, the Company remains committed to the implementation of a new ERP system. The Company is currently evaluating its alternatives for next steps. Meanwhile, its legacy ERP systems continue to run the Company's business.

The Company completed its annual impairment test as of June 30 and determined that a goodwill impairment charge of $20.6 million was necessary for its Brazilian POS & Barcode and European Communications reporting units.  During the fourth quarter 2013, the Company recorded pre-tax, non-cash impairment charges of $5.4 million and $15.1 million related to its Europe Communications and Brazilian POS & Barcode reporting units, respectively. The Company's impairment testing included the determination of the reporting unit's fair value using market multiples and discounted cash flows modeling based on recent forecasts, which were discounted using a weighted average cost of capital.  The European Communications impairment charges were a result of reduced forecasts for earnings and cash flows. The Brazil POS & Barcode impairment charge resulted from reduced earnings and cash flow forecast primarily due to general macroeconomic environment and lower expectations of future results. The Company's purchase price for its acquisition of CDC Brasil (now its Brazilian POS & Barcode unit) included an earnout structure with five annual payments through 2015. Earnout payments made to CDC Brasil shareholders have been lower than those forecasted and assumed in the calculation of goodwill at the time of acquisition.

Item 9.01. Financial Statements and Exhibits

(c) Exhibits

99.1 – Press release issued by ScanSource, Inc. on August 22, 2013. The information contained in the attached exhibit is unaudited and should be read in conjunction with the Registrant’s annual and quarterly reports filed with the Securities and Exchange Commission.

99.2 – Presentation Slides for Q4 FY 2013 Financial Results Conference Call issued on August 22, 2013. The information contained in the attached exhibit is unaudited and should be read in conjunction with the Registrant’s annual and quarterly reports filed with the Securities and Exchange Commission.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	ScanSource, Inc.
Date: August 22, 2013	By:	/s/ Charles A. Mathis
	Name:	Charles A. Mathis
	Its:	Senior Vice President and Chief Financial Officer

EX-99.1

FOR IMMEDIATE RELEASE

Contact:
Charles A. Mathis		Mary M. Gentry
Senior Vice President and Chief Financial Officer	- or -	Treasurer and Director, Investor Relations
ScanSource, Inc.		ScanSource, Inc.
(864) 286-4975		(864) 286-4892

SCANSOURCE REPORTS FOURTH QUARTER AND FULL YEAR RESULTS

Fourth Quarter Non-GAAP EPS of $0.71

GREENVILLE, SC -- August 22, 2013 -- ScanSource, Inc. (NASDAQ:SCSC), the leading international value-added distributor of specialty technology products, today announced complete financial results for its fourth quarter and fiscal year ended June 30, 2013, including non-cash impairment charges.

Quarter ended June 30, 2013:				Fiscal Year ended June 30, 2013:
Net sales	$	712.7	million	Net sales	$	2,877.0	million
GAAP net loss	$	(13.3	) million	GAAP net income	$	34.7	million
Adjusted net income(1)	$	19.9	million	Adjusted net income(1)	$	69.3	million
GAAP diluted EPS	$	(0.48	) per share	GAAP diluted EPS	$	1.24	per share
Adjusted diluted EPS(1)	$	0.71	per share	Adjusted diluted EPS(1)	$	2.47	per share
(1) A reconciliation of non-GAAP financial information to GAAP financial information is presented in the following Supplementary Information table.

“We saw record quarterly sales in our North America Communications and Security business units,” said Mike Baur, CEO, ScanSource, Inc.  “The lack of big deals in our POS & Barcode business units, however, led to lower than expected fourth quarter sales.  Despite lower sales, our return on invested capital increased to 17.2%, excluding the impairment charges, driven by higher  margins, better working capital management, and our focus on value-added growth.”

For the quarter ended June 30, 2013, net sales totaled $712.7 million. This represents a 4.4% increase from the prior quarter's net sales of $683.0 million and a 5.5% decrease from net sales of $754.5 million for the quarter ended June 30, 2012.

Operating loss for the quarter ended June 30, 2013 of $20.4 million included pre-tax, non-cash impairment charges of $48.8 million. Excluding the non-cash impairment charges, operating income was $28.4 million, comparable to $28.3 million for the prior year quarter.

Net loss for the quarter ended June 30, 2013 was $13.3 million, or $0.48 per diluted share, compared with net income of $19.8 million, or $0.71 per diluted share, for the prior year quarter. Excluding the non-cash impairment charges, adjusted net income for the quarter ended June 30, 2013 totaled $19.9 million, or $0.71 per diluted share.

Impairment charges

During the fourth quarter 2013, the Company recorded pre-tax, non-cash impairment charges of $48.8 million, including $28.2 million for the impairment of capitalized costs associated with the Enterprise Resource Planning (“ERP”) project that the Company has been developing and $20.6 million for the impairment of goodwill.

In January 2013, the Company, through its wholly-owned subsidiary Partner Services, Inc., filed a lawsuit against its former ERP software systems integrator, Avanade, Inc. (“Avanade”). The lawsuit alleges, among other things, fraud, tortious misrepresentation and breach of contract on the part of Avanade in connection with its misconduct and performance failures on the ERP project, and the Company is seeking recovery of damages.

The Company engaged a new systems integration partner, Tata Consultancy Services (“TCS”), to replace Avanade. In March 2013, TCS presented an integrated project plan that included the time and costs to complete the project. This plan indicated that the effort remaining was going to approach the $72 million upper end of the Company's previously-disclosed total project cost

range with no assurance that the system would be successful. In April 2013, the Company moved a significant number of its team members who were working on the ERP project back into business roles and began evaluating alternatives for next steps.

In the current quarter, the ERP team has been focused on working with Microsoft Consulting on alternative options to facilitate completion of the project. Additionally, the ERP team met with other software vendors for an understanding of how their software would meet the needs of the Company. At this time, there is not a viable plan to complete and use the software development of the Microsoft Dynamics AX-based ERP project. The Company believes that the incomplete ERP implementation by Avanade is of almost no value. The Company believes that the ERP project impairment is in large part a result of Avanade's cost overruns, time overruns and performance failures as alleged in the Complaint. Based on the above factors, in connection with the preparation and review of the financial statements for the quarter ended June 30, 2013, the Company reviewed the ERP project from an accounting impairment perspective and determined that the ERP software project is impaired.

The Company is currently evaluating its alternatives for next steps in the development of a new ERP system. Meanwhile, its legacy ERP systems continue to run its business successfully.

The $20.6 million charge for the impairment of goodwill included $5.4 million and $15.1 million related to its Europe Communications and Brazilian POS & Barcode reporting units, respectively.  The Company's purchase price for its acquisition of CDC Brasil (now its Brazilian POS & Barcode unit) included an earnout structure with five annual payments through 2015.  Earnout payments made to CDC Brasil shareholders have been lower than those forecasted and assumed in the calculation of goodwill at the time of acquisition. 

Change in Operating Segments

In June 2013, the Company announced a change in its management structure and reporting segments to enhance its worldwide technology markets focus. As part of this new structure, ScanSource has created two technology segments: Worldwide Barcode & Security and Worldwide Communications & Services. Historical results reflecting the new reporting segments for each quarter of fiscal year 2013 are provided in the following Supplementary Information tables.

Forecast for Next Quarter

The Company announced its current expectations for the first quarter of fiscal 2014. ScanSource expects that net sales for the quarter ending September 30, 2013 could range from $715 million to $735 million, and diluted earnings per share could be in the range of $0.56 to $0.58 per share.

ScanSource Reports Fourth Quarter and Full Year Results

Webcast Details

ScanSource will present additional information about its financial results outlook in a conference call with presentation slides today, August 22, 2013, at 5:00 p.m. (ET). A webcast of the call and accompanying presentation slides will be available for all interested parties and can be accessed at www.scansourceinc.com (Investor Relations section). The webcast will be available for replay for 60 days.

Safe Harbor Statement

This press release contains comments that are “forward-looking” statements that involve risks and uncertainties; these statements are subject to the safe harbor created by the Private Securities Litigation Reform Act of 1995. Any number of important factors could cause actual results to differ materially from anticipated or forecasted results, including, but not limited to, expanded operations in emerging markets, such as Brazil, that expose the Company to greater political and economic volatility than its operations in established markets; impairment charges, additional costs and delays in connection with the Company's new ERP system and associated litigation; the ability to forecast volatility in earnings resulting from the quarterly revaluation of the Company's earnout obligation to the sellers of CDC; and macroeconomic circumstances that could impact the business, such as currency fluctuations, credit market conditions, and an economic downturn. For more information concerning factors that could cause actual results to differ from anticipated results, see the Company's prior Form 10Q's, and annual report on Form 10-K for the year ended June 30, 2012 filed with the Securities and Exchange Commission. Except as may be required by law, the Company expressly disclaims any obligation to update these forward-looking statements to reflect events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events.

Non-GAAP Financial Information

In addition to disclosing results that are determined in accordance with United States Generally Accepted Accounting Principles ("GAAP"), the Company also discloses certain non-GAAP financial measures, including net sales excluding the translation impact of foreign currencies, adjusted net income and adjusted EPS, and return on invested capital ("ROIC"). Non-GAAP financial measures are used to better understand and evaluate performance, including comparisons from period to period, as described below.

Net sales excluding the translation impact of foreign currencies: The Company discusses the percentage change in net sales excluding the translation impact from changes in foreign currency exchange rates between reporting periods. This measure enhances comparability between periods to help analyze underlying trends.

Adjusted net income and adjusted EPS: To evaluate current period performance on a clearer and more consistent basis with prior periods, the Company discloses adjusted net income and adjusted diluted earnings per share, which exclude charges associated with the ERP and goodwill impairments, and costs associated with tax compliance and personnel replacement in the Company's Belgian office. Management believes that these historical items are outside of the Company's normal operating expenses. Adjusted net income and adjusted EPS are useful in better assessing and understanding the Company's operating performance, especially when comparing results with previous periods or forecasting performance for future periods.

Return on invested capital ("ROIC"): Management uses ROIC as a performance measurement to assess efficiency at allocating capital under the Company's control to generate returns. Management believes this metric balances the Company's operating results with asset and liability management, excludes the results of capitalization decisions, is easily computed and understood, and is considered to have a strong correlation with shareholder value creation. In addition, the Company's Board of Directors uses ROIC in evaluating business and management performance. Certain management incentive compensation targets are set and measured relative to ROIC. Management adjusted the calculation of ROIC to exclude the impact of ERP and goodwill impairment charges in addition to costs associated with Belgian tax compliance and personnel replacement, to provide a measure of the Company's profitability on a basis more comparable to historical or future periods.

These non-GAAP financial measures have limitations as analytical tools, and the non-GAAP financial measures that the Company reports may not be comparable to similarly titled amounts reported by other companies. Analysis of results and outlook on a non-GAAP basis should be considered in addition to, and not in substitution for or as superior to, measurements of financial performance prepared in accordance with GAAP. A reconciliation of the Company's non-GAAP financial information to GAAP is set forth in the following Supplemental Information tables.

About ScanSource, Inc.

ScanSource, Inc. (NASDAQ: SCSC) is the leading international distributor of specialty technology products, focusing on point-of-sale (POS) and barcode, communications and physical security solutions. ScanSource's teams provide value-added services and operate from two technology segments, Worldwide Barcode & Security and Worldwide Communications & Services. ScanSource is committed to helping its reseller customers choose, configure, and deliver the industry's best products across almost every vertical market in North America, Latin America and Europe.  Founded in 1992, the Company ranks #711 on the Fortune 1000.  For more information, visit www.scansourceinc.com.

ScanSource Reports Fourth Quarter and Full Year Results

ScanSource, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets (Unaudited)
(in thousands)
	June 30, 2013			June 30, 2012*
Assets
Current assets:
Cash and cash equivalents	$	148,164		$	29,173
Accounts receivable, less allowance of	435,028			458,341
$25,479 at June 30, 2013
$24,405 at June 30, 2012
Inventories	402,307			487,946
Prepaid expenses and other current assets	40,105			41,846
Deferred income taxes	16,456			14,624
Total current assets	1,042,060			1,031,930
Property and equipment, net	20,203			48,785
Goodwill	31,795			53,885
Other non-current assets, including identifiable intangible assets	70,125			67,206
Total assets	$	1,164,183		$	1,201,806
Liabilities and Shareholders' Equity
Current liabilities:
Short-term borrowings	$	—		$	4,268
Current portion of contingent consideration	3,732			4,976
Accounts payable	362,271			419,683
Accrued expenses and other current liabilities	59,983			67,776
Income taxes payable	1,696			1,698
Total current liabilities	427,682			498,401
Deferred income taxes	205			—
Long-term debt	5,429			5,429
Long-term portion of contingent consideration	8,813			11,677
Other long-term liabilities	26,098			33,988
Total liabilities	468,227			549,495
Shareholders' equity:
Common stock	149,821			139,557
Retained earnings	569,107			534,445
Accumulated other comprehensive income (loss)	(22,972		)	(21,691		)
Total shareholders' equity	695,956			652,311
Total liabilities and shareholders' equity	$	1,164,183		$	1,201,806
* Derived from audited financial statements at June 30, 2012.

ScanSource Reports Fourth Quarter and Full Year Results

ScanSource, Inc. and Subsidiaries
Condensed Consolidated Income Statements (Unaudited)
(in thousands, except per share data)
	Quarter ended June 30,						Year ended June 30,
	2013			2012*			2013			2012*
Net sales	$	712,678		$	754,470		$	2,876,964		$	3,015,296
Cost of goods sold	637,027			680,643			2,584,090			2,713,272
Gross profit	75,651			73,827			292,874			302,024
Operating expenses:
Selling, general and administrative expenses	46,824			46,634			191,216			188,388
Impairment charges, including ERP and goodwill	48,772			—			48,772			—
Change in fair value of contingent consideration	447			(1,123		)	1,843			120
Operating income (loss)	(20,392		)	28,316			51,043			113,516
Other expense (income):
Interest expense	419			150			775			1,639
Interest income	(590		)	(653		)	(2,238		)	(2,886		)
Other, net	(554		)	188			(520		)	3,552
Income (loss) before income taxes	(19,667		)	28,631			53,026			111,211
Provision for income taxes	(6,352		)	8,846			18,364			36,923
Net income (loss)	$	(13,315	)	$	19,785		$	34,662		$	74,288
Per share data:
Weighted-average shares outstanding, basic	27,922			27,579			27,774			27,362
Net income (loss) per common share, basic	$	(0.48	)	$	0.72		$	1.25		$	2.72
Weighted-average shares outstanding, diluted	27,922			27,866			27,994			27,751
Net income (loss) per common share, diluted	$	(0.48	)	$	0.71		$	1.24		$	2.68
*Derived from audited financial statements at June 30, 2012.

ScanSource Reports Fourth Quarter and Full Year Results

ScanSource, Inc. and Subsidiaries
Supplementary Information (Unaudited)
(in thousands)
Net Sales by Segment:
							Non-GAAP
	Quarter ended June 30,						% Change
	2013		2012		% Change		Excluding FX(a)
Worldwide Barcode & Security	$	444,766	$	454,115	(2.1	)%	(2.0	)%
Worldwide Communications & Services	267,912		300,355		(10.8	)%	(10.9	)%
Consolidated	$	712,678	$	754,470	(5.5	)%	(5.5	)%
							Non-GAAP
	Year ended June 30,						% Change
	2013		2012		% Change		Excluding FX(a)
Worldwide Barcode & Security	$	1,828,219	$	1,837,307	(0.5	)%	1.4	%
Worldwide Communications & Services	1,048,745		1,177,989		(11.0	)%	(10.7	)%
Consolidated	$	2,876,964	$	3,015,296	(4.6	)%	(3.4	)%
Notes:
(a) Year-over-year net sales growth rate excluding the translation impact of changes in foreign currency exchange rates. Calculated by translating the net sales for the quarter and year ended June 30, 2013 into U.S. dollars using the weighted average foreign exchange rates for the quarter and year ended June 30, 2012, respectively. Worldwide Barcode & Security net sales excluding the translation impact of foreign currencies for the quarter and year ended June 30, 2013, as adjusted, totaled $445.1 million and $1,862.7 million, respectively. Worldwide Communications & Services net sales excluding the translation impact of foreign currencies for the quarter and year ended June 30, 2013, as adjusted, totaled $267.6 million and $1,051.4 million, respectively.
Net Sales by Geography:
							Non-GAAP
	Quarter ended June 30,						% Change
	2013		2012		% Change		Excluding FX(a)
North America (U.S. and Canada)	$	537,530	$	570,219	(5.7	)%	(5.7	)%
International	175,148		184,251		(4.9	)%	(5.0	)%
Consolidated	$	712,678	$	754,470	(5.5	)%	(5.5	)%
							Non-GAAP
	Year ended June 30,						% Change
	2013		2012		% Change		Excluding FX(a)
North America	$	2,139,723	$	2,236,459	(4.3	)%	(4.3	)%
International	737,241		778,837		(5.3	)%	(0.6	)%
Consolidated	$	2,876,964	$	3,015,296	(4.6	)%	(3.4	)%
Notes:
(a)Year-over-year net sales growth rate excluding the translation impact of changes in foreign currency exchange rates. Calculated by translating the net sales for the quarter and year ended June 30, 2013 into U.S. dollars using the weighted average foreign exchange rates for the quarter and year ended June 30, 2012, respectively. International net sales excluding the translation impact of foreign currencies for the quarter and year ended June 30, 2013, as adjusted, totaled $175.1 million and $774.4 million, respectively.

ScanSource Reports Fourth Quarter and Full Year Results

ScanSource, Inc. and Subsidiaries
Supplementary Information (Unaudited)
(in thousands, except per share data)
Non-GAAP Financial Information:
	Quarter ended June 30, 2013
	Pre-Tax Income (Loss)			Net Income (Loss)			Diluted EPS
GAAP measure	$	(19,667	)	$	(13,315	)	$	(0.48	)
Adjustments:
Impairment charges - ERP(1)	28,210			18,015			0.64
Impairment charges - goodwill(1)	20,562			15,201			0.54
Non-GAAP measure(1)	$	29,105		$	19,901		$	0.71
(1) Diluted EPS calculated using 28,099 weighted average diluted shares outstanding.
	Year ended June 30, 2013
	Pre-Tax Income			Net Income			Diluted EPS
GAAP measure	$	53,026		$	34,662		$	1.24
Adjustments:
Costs associated with Belgian tax compliance and personnel replacement costs, including related professional fees	2,121			1,400			0.05
Impairment charges - ERP	28,210			18,015			0.64
Impairment charges - goodwill	20,562			15,201			0.54
Non-GAAP measure	$	103,919		$	69,278		$	2.47

ScanSource Reports Fourth Quarter and Full Year Results

ScanSource, Inc. and Subsidiaries
Supplementary Information (Unaudited)
(in thousands, except per share data)
Non-GAAP Financial Information:
	Quarter ended June 30,						Year ended June 30,
	2013			2012			2013			2012
Return on invested capital (ROIC), annualized (a)	17.2		%	18.1		%	16.0		%	17.2		%
Reconciliation of Net Income (Loss) to EBITDA
Net income (loss) (GAAP)	$	(13,315	)	$	19,785		$	34,662		$	74,288
Plus: Income taxes	(6,352		)	8,846			18,364			36,923
Plus: Interest expense	419			150			775			1,639
Plus: Depreciation and amortization	1,594			2,242			8,457			9,580
EBITDA	(17,654		)	31,023			62,258			122,430
Adjustments:
Impairment charges, including ERP and goodwill, and Belgian costs	48,772			—			50,893			—
Adjusted EBITDA (numerator for ROIC) (non-GAAP)	$	31,118		$	31,023		$	113,151		$	122,430
Invested Capital Calculation
Equity - beginning of quarter/year	$	709,912		$	642,450		$	652,311		$	587,394
Equity - end of quarter/year	695,956			652,311			695,956			652,311
Add:
Impairment charges, including ERP and goodwill, and Belgian costs, net of tax	33,216			—			34,616			—
Average equity	719,542			647,381			691,442			619,853
Average funded debt (b)	5,429			41,324			15,405			92,125
Invested capital (denominator for ROIC) (non-GAAP)	$	724,971		$	688,705		$	706,847		$	711,978
Notes:
(a) Calculated as net income plus interest expense, income taxes, depreciation and amortization (EBITDA), annualized and divided by invested capital for the period. EBITDA excludes impairment charges, including ERP & goodwill and costs associated with Belgian tax compliance and personnel replacement costs, including related professional fees.
(b) Average funded debt is calculated as the daily average amounts outstanding on our short-term and long-term interest-bearing debt.

ScanSource Reports Fourth Quarter and Full Year Results

ScanSource, Inc. and Subsidiaries
Supplementary Information (Unaudited)
(in thousands, except per share data)
Segment Information:
	Quarter ended
	September 30, 2012		December 31, 2012		March 31, 2013		June 30, 2013
Sales:
Worldwide Barcode & Security	$	456,187	$	489,075	$	438,191	$	444,766
Worldwide Communications & Services	277,418		258,641		244,774		267,912
	$	733,605	$	747,716	$	682,965	$	712,678
Depreciation and amortization:
Worldwide Barcode & Security	$	1,488	$	1,451	$	1,456	$	1,013
Worldwide Communications & Services	826		824		818		581
	$	2,314	$	2,275	$	2,274	$	1,594
Operating income (loss):
Worldwide Barcode & Security(1)	$	12,625	$	13,289	$	10,413	$	(1,662	)
Worldwide Communications & Services(2)	13,590		11,136		10,382		9,480
Corporate(3)	—		—		—		(28,210		)
	$	26,215	$	24,425	$	20,795	$	(20,392	)
Assets:
Worldwide Barcode & Security	$	724,412	$	755,276	$	673,560	$	609,939
Worldwide Communications & Services	409,277		376,119		357,477		387,097
Corporate	74,401		72,128		127,402		167,147
	$	1,208,090	$	1,203,523	$	1,158,439	$	1,164,183
Capital expenditures:
Worldwide Barcode & Security	$	120	$	22	$	181	$	123
Worldwide Communications & Services	320		346		211		96
Corporate	1,566		830		868		148
	$	2,006	$	1,198	$	1,260	$	367
(1) For the year ended June 30, 2013, the amount shown above includes a non-cash charge of $15.1 million for the goodwill impairment in Brazil. (2) For the year ended June 30, 2013, the amount shown above includes a non-cash charge of $5.4 million for the goodwill impairment in Europe. (3) For the year ended June 30, 2013, the amount shown above includes a non-cash charge of $28.2 million for the impairment of our ERP project.

EX-99.2

Q4 FY 2013 FINANCIAL RESULTS CONFERENCE CALL August 22, 2013 at 5:00 pm ET Exhibit 99.2

Safe Harbor This presentation may contain certain comments, which are “forward-looking” statements that involve plans, strategies, economic performance and trends, projections, expectations, or beliefs about future events and other statements that are not descriptions of historical facts, may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking information is inherently subject to risks and uncertainties; these statements are subject to the safe harbor created by the Private Securities Litigation Reform Act of 1995. Any number of factors could cause actual results to differ materially from anticipated results. For more information concerning factors that could cause actual results to differ from anticipated results, see the “Risk Factors” included in the Company’s prior Forms 10-Q and annual report on Form 10-K for the fiscal year ended June 30, 2012 filed with the Securities and Exchange Commission (“SEC”). Although ScanSource believes the expectations reflected in its forward-looking statements are reasonable, it cannot guarantee future results, levels of activity, performance or achievements. ScanSource disclaims any intentions or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as may be required by law. In addition to disclosing results that are determined in accordance with United States Generally Accepted Accounting Principles (“GAAP”), the Company also discloses certain non-GAAP measures, including adjusted net income and adjusted diluted EPS, return on invested capital (“ROIC”) and the percentage change in net sales excluding the impact of foreign currency exchange rates. A reconciliation of the Company's non-GAAP financial information to GAAP financial information is provided in the Company’s Form 8-K, filed with the SEC, with the quarterly earnings press release for the period indicated. 2

Highlights – Q4 FY13 • Fourth quarter 2013 net sales of $713 million, below our expected range – Lack of big deals in our POS & Barcode business – Weaker-than-planned sales from ScanSource Catalyst • Record sales quarters for North America Communications, Security, and Mexico – Second highest sales quarter in Brazil, in local currency, since 2011 acquisition • Reduced inventory and best quarter all year for inventory turns • Fourth quarter return on invested capital of 17.2% adjusted for impairment charges • New management structure to enhance worldwide technology markets focus and growth strategy • Fourth quarter 2013 non-cash impairment charges for ERP project and goodwill 3

New Segments Enhance Technology Focus 4 Worldwide Barcode and Security Segment Worldwide Communications and Services Segment President: Buck Baker Technologies: POS and Barcode Physical Security Business Units: President: Mike Ferney Technologies: Communications Services Business Units:

Q4 FY13 Non-Cash Impairment Charges Operating Income Net Income Diluted EPS GAAP measure $(20.4) $(13.3) $(0.48) Adjustments: Impairment charges – ERP* 28.2 18.0 0.64 Impairment charges – goodwill* 20.6 15.2 0.54 Non-GAAP measure* $28.4 $19.9 $0.71 % of net sales 3.98% In millions, except EPS * Diluted EPS calculated using 28.1 million weighted average diluted shares outstanding. 5

Income Statement Highlights Q4 FY13 GAAP Non-GAAP* Q4 FY12 Net sales $712.7 $712.7 $754.5 Gross margin % (of net sales) 10.6% 10.6% 9.8% SG&A expenses 46.8 46.8 46.6 Impairment charges 48.8 -- -- Change in FV of contingent consideration 0.4 0.4 (1.1) Operating income (20.4) 28.4 28.3 Operating income % (of net sales) (2.86)% 3.98% 3.75% Net income (loss) $(13.3) $19.9 $19.8 Diluted EPS $(0.48) $0.71 $0.71 In millions, except EPS * Excluding impairment changes; see preceding slide for reconciliation of GAAP to non-GAAP measures. 6

Q4 FY13 Sales Mix By Segment By Geography Q4 FY13 Net Sales: $712.7 million Q4 FY13 Net Sales: $712.7 million 74% North America* Barcode & Security = Worldwide Barcode and Security Communications & Services = Worldwide Communications and Services As a % of net sales * Includes the United States and Canada 62% Barcode & Security 75% North America* 25% International 38% Communications & Services 7

$454 $445 4Q FY12 4Q FY13 WW Barcode & Security Segment Net Sales, $ in millions Down (2.1%) Excluding FX, Down (2.0%) Q4 FY13 Q4 FY12 Gross profit $43.3 $42.6 Gross margin 9.7% 9.4% Operating income (loss) $(1.7) $17.2 Impairment charge - goodwill 15.1 -- Adjusted operating income $13.5 $17.2 Operating income % 3.0% 3.8% $ in millions 8

$1,837 $1,828 FY12 FY13 WW Barcode & Security Segment Net Sales, $ in millions Down (0.5%) Excluding FX, Up 1.4% FY13 FY12 Gross profit $168.1 $169.1 Gross margin 9.2% 9.2% Operating income (loss) $34.7 $56.7 Impairment charge - goodwill 15.1 -- Adjusted operating income $49.8 $56.7 Operating income % 2.7% 3.1% $ in millions 9

$300 $268 4Q FY12 4Q FY13 WW Communications & Services Segment Q4 FY13 Q4 FY12 Gross profit $32.3 $31.2 Gross margin 12.1% 10.4% Operating income (loss) $9.5 $11.1 Impairment charge - goodwill 5.4 -- Adjusted operating income $14.9 $11.1 Operating income % 5.6% 3.7% $ in millions Net Sales, $ in millions Down (10.8%) Excluding FX, Down (10.9%) 10

$1,178 $1,049 FY12 FY13 WW Communications & Services Segment FY13 FY12 Gross profit $124.8 $132.9 Gross margin 11.9% 11.3% Operating income (loss) $44.6 $56.8 Impairment charge - goodwill 5.4 -- Adjusted operating income $50.0 $56.8 Operating income % 4.8% 4.8% $ in millions Net Sales, $ in millions Down (11.0%) Excluding FX, Down (10.7%) 11

Q4 FY13 Key Measures Q4 FY13 Q3 FY13 Q4 FY12 Return on invested capital (“ROIC”)* 17.2% 13.3% 18.1% Cash and cash equivalents (Q/E) $148.2 $93.9 $29.2 Operating cash flow $53.4 $86.0 $34.9 Days sales outstanding in receivables 55 55 55 Inventory (Q/E) $402.3 $418.0 $487.9 Inventory turns 6.2 5.4 5.4 Paid for inventory days 5.7 13.5 9.0 * See Appendix for calculation of ROIC, a non-GAAP measure. $ in millions 12

$454 $445 4Q FY12 4Q FY13 WW Barcode & Security Highlights Net Sales, $ in millions Down (2.1%) Excluding FX, Down (2.0%) • 62% of overall sales • POS & Barcode in North America and Europe declined year-over-year – Lack of big deals – More aggressive competitive landscape • Second highest sales quarter in Brazil, in local currency, since 2011 acquisition • Latin America sales varied country-by- country – Record sales quarter in Mexico – Difficulties in Venezuela and Argentina, including scarcity of U.S. dollars for payments • Record sales quarter for Security – Driven by Cisco physical security business and a record networking quarter 13

$300 $268 4Q FY12 4Q FY13 WW Communications & Services Highlights Net Sales, $ in millions Down (10.8%) Excluding FX, Down (10.9%) • 38% of overall sales • Record sales quarter for ScanSource Communications in North America – Record quarters with Polycom Voice, ShoreTel, Sonus and Chief • ScanSource Catalyst – Double-digit sales growth with wireless vendors – In June, launched Cisco collaboration products • Europe Communications – Lowest sales quarter this year, principally from lower big deal volume in Germany – Second best sales quarter in U.K – April restructuring; sales plan for growth and profitability • ScanSource Services Group exceeded plan in all areas 14

Q1 FY14 Outlook For the Quarter Ending September 30, 2013: Net Sales Diluted Earnings Per Share • Range from $715 million to $735 million • Range midpoint: $725 million • Range from $0.56 to $0.58 per share • Range midpoint: $0.57 Outlook as of August 22, 2013 15

Appendix: Non-GAAP Financial Information 16 Q4 FY13 Q3 FY13 Q4 FY12 Return on invested capital (ROIC), annualized (a) 17.2% 13.3% 18.1% Reconciliation of Net Income (Loss) to EBITDA Net income (loss) - GAAP $ (13,315) $ 13,978 $ 19,785 Plus: Income taxes (6,352) 7,202 8,846 Plus: Interest expense 419 102 150 Plus: Depreciation and amortization 1,594 2,274 2,242 EBITDA (17,654) 23,556 31,023 Adjustments: Impairment charges, including ERP & goodwill 48,772 - - Adjusted EBITDA (numerator for ROIC)(non-GAAP) $ 31,118 $ 23,556 $ 31,023 Invested Capital Calculation Equity - beginning of the quarter $ 709,912 $ 696,960 $ 642,450 Equity - end of quarter 695,956 709,912 652,311 Add: Impairment charges, including ERP & goodwill, net of tax 33,216 - - Average equity 719,542 703,436 647,381 Average funded debt (b) 5,429 15,675 41,324 Invested capital (denominator for ROIC)(non-GAAP) $ 724,971 $ 719,111 $ 688,705 Notes: (a) Calculated as net income plus interest expense, income taxes, depreciation and amortization (EBITDA), annualized and divided by invested capital. EBITDA excludes non-cash impairment charges. (b) Average daily amounts outstanding on our short-term and long-term interest-bearing debt.

Appendix: Non-GAAP Financial Information 17 Worldwide Barcode & Security Net sales, excluding impact of foreign exchange (FX) - Y/Y Change: Q4 2013 net sales $ 444.8 Fx impact 0.3 Q4 2013 net sales, excluding Fx impact $ 445.1 International Q4 2012 sales $ 454.1 % Change -2.0% FY 2013 net sales $ 1,828.2 Fx impact 34.5 FY 2013 net sales, excluding Fx impact $ 1,862.7 International FY 2012 sales $ 1,837.3 % Change 1.4% Worldwide Communications & Services Net sales, excluding impact of foreign exchange (FX) - Y/Y Change: Q4 2013 net sales $ 267.9 Fx impact (0.3) Q4 2013 net sales, excluding Fx impact $ 267.6 International Q4 2012 sales $ 300.4 % Change -10.9% FY 2013 net sales $ 1,048.7 Fx impact 2.7 FY 2013 net sales, excluding Fx impact $ 1,051.4 International FY 2012 sales $ 1,178.0 % Change -10.7%