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) April 26, 2007

ScanSource, Inc.

(Exact Name of Registrant as Specified in Its Charter)

South Carolina	000-26926	57-0965380
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(I.R.S. Employer Identification Number)

6 Logue Court, Greenville, South Carolina 29615

(Address, Including Zip Code, of Principal Executive Offices)

(864) 288-2432

(Registrant’s Telephone Number, Including Area Code)

N/A

(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 (see General Instruction A.2. below):

¨ 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 April 26, 2007, ScanSource, Inc. issued a press release announcing certain of its financial results for the third quarter ended March 31, 2007. A copy of the press release is attached as Exhibit 99.1 hereto and incorporated herein by reference and also made available through the Company’s website at www.scansource.com.

The information in 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 9.01. Financial Statements and Exhibits

(c) Exhibits

99.1 – Press release issued by ScanSource, Inc. on April 26, 2007. 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: April 26, 2007	By:	/S/ Richard P. Cleys
	Name:	Richard P. Cleys
	Its:	Vice President and Chief Financial Officer

EX-99.1

Exhibit 99.1

FOR IMMEDIATE RELEASE

Contact:	Richard P. Cleys
	VP and CFO
	ScanSource, Inc.
	864 286-4358

SCANSOURCE REPORTS STRONG THIRD QUARTER SALES

*Sales increase 21% to $ 493 million

GREENVILLE, SC—April 26, 2007—ScanSource, Inc. (Nasdaq:SCSC), a leading international distributor of AIDC (automatic identification and data capture), point of sale, communications and electronic security products for the reseller market, today announced selected financial results for its quarter ended March 31, 2007.

Net sales	$492.7 million
Gross margin	51.0 million

“Our results were again led by the excellent growth in our AIDC business across all geographies,” said Mike Baur, President and CEO of ScanSource. “In addition, our investments are paying off with record results from T2 Supply and ScanSource Security.”

For the quarter ended March 31, 2007, net sales increased 21% to $492.7 million compared to $405.6 million for the quarter ended March 31, 2006. Quarterly gross margin increased to $51.0 million or 10.4% of revenues compared to $41.3 million or 10.2% for the same quarter in 2006.

On April 20, 2007, the Company announced that it had completed its accounting analysis of the Special Committee findings regarding the Company’s stock option grant practices and reached a determination that, under applicable accounting principles, the appropriate measurement dates for certain stock options differed from the recorded measurement dates for certain stock option grants.

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ScanSource Reports Strong Third Quarter Sales

Accordingly, on April 20, 2007, the Company announced that its Board of Directors had determined that the Company’s previously issued financial statements included in its Annual Report on Form 10-K for the year ended June 30, 2006, and perhaps financial statements for earlier periods, including other historical financial information, related disclosures and applicable reports of its independent registered public accounting firm, should no longer be relied upon and that the Company will restate previously issued financial statements as necessary. The Company intends to file with the SEC any consolidated financial statements required to be restated and its Quarterly Reports on Form 10–Q for the quarters ended September 30, 2006 and December 31, 2006, as soon as practicable. The Company will not be in a position to report net income or diluted EPS for the quarter ended March 31, 2007 or other periods until the above-referenced restatement and filing of quarterly reports for the first two quarters of the Company’s 2007 fiscal year are complete.

Forecast for Next Quarter

The Company announced its revenue forecast for the fourth quarter of fiscal 2007. ScanSource expects net revenues for the June 2007 quarter could range from $512 million to $532 million.

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ScanSource Reports Strong Third Quarter Sales

Safe Harbor Statement

This news 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 results. Results of the review of the Special Committee will have an impact on reported financial results for this quarter, as well as previously reported results. For more information concerning factors that could cause actual results to differ from anticipated results, see the Company’s annual report on Form 10K filed with the Securities and Exchange Commission.

About ScanSource

ScanSource, Inc. is a leading international distributor of specialty technology products. The Company markets specialty technologies through five sales units: ScanSource [automatic identification and data capture (AIDC) and point-of-sale (POS) products]; Catalyst Telecom (Avaya communications products); Paracon (communications products); T2 Supply (video conferencing and telephone products); and ScanSource Security Distribution (electronic security products).

The Company serves the North America marketplace and has an international segment which sells AIDC and POS products in Latin America and Europe. Founded in 1992, the Company ranks #982 on the Fortune 1000. For more information, call the toll-free sales telephone number at 800.944.2432 or visit www.scansource.com.

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ScanSource Reports Strong Third Quarter Sales

SCANSOURCE, INC. AND SUBSIDIARIES

SELECTED BALANCE SHEET DATA

(In thousands)

	March 31, 2007 (unaudited)		December 31, 2006 (unaudited)		September 30, 2006 (unaudited)		June 30, 2006 (unaudited)
Selected Assets
Cash and cash equivalents	$	3,036	$	2,730	$	3,130	$	3,831
Trade & notes receivable, net		331,823		315,172		344,451		297,740
Inventories		291,332		274,723		246,905		244,005
Property and equipment, net		25,767		26,347		26,174		27,098
Selected Liabilities
Trade accounts payable		250,054		286,306		271,580		271,519
Debt and other borrowings		132,891		78,568		107,007		32,185

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ScanSource Reports Strong Third Quarter Sales

SCANSOURCE, INC. AND SUBSIDIARIES

SELECTED CONSOLIDATED INCOME STATEMENT DATA (UNAUDITED)

(In thousands)

	Quarter ended March 31,						Nine months ended March 31,
	2007			2006			2007			2006
Net sales	$	492,678		$	405,592		$	1,462,642		$	1,204,456
Cost of goods sold		441,641			364,332			1,306,990			1,081,033
Gross profit		51,037			41,260			155,652			123,423
		10.4	%		10.2	%		10.6	%		10.2	%
Interest expense		1,939			633			5,464			1,598
Interest income		(246	)		(243	)		(529	)		(547	)

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