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)        January 22, 2009

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 January 22, 2009, ScanSource, Inc. issued a press release announcing its financial results for the first quarter ended December 31, 2008. 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.scansourceinc.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 January 22, 2009. 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: January 22, 2009	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 SECOND QUARTER RESULTS

Stronger than expected earnings on lower sales

GREENVILLE, SC — January 22, 2009—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 complete financial results for its second quarter ended December 31, 2008.

Quarter End 12/31/08 capsule:   Net sales Net income Diluted EPS     $477 million $13.5 million $0.51 per share

“Customers in all our business segments experienced less demand for their products and services due to the global economic crisis,” said Mike Baur, CEO, ScanSource, Inc. “In spite of these lower sales results, we achieved higher profitability than expected.”

For the quarter ended December 31, 2008, net sales decreased 14% to $477 million compared to $553 million for the quarter ended December 31, 2007. Quarterly operating income decreased 27.7% to $18.4 million from $25.4 million for the comparable prior year quarter. Our effective tax rate for the quarter was 34.8%, compared to 37.7% for the prior year quarter. Net income decreased

ScanSource Reports Second Quarter Results

12.5% to $13.5 million for the quarter ended December 31, 2008 versus $15.5 million for the quarter ended December 31, 2007. It should be noted that during the current quarter, the Company settled a legal claim against a former service provider, which resulted in a $3.5 million recovery ($2.2 million after tax or $0.08 per diluted share) that was recorded as Other Income in the accompanying condensed consolidated income statement.

Forecast for Next Quarter

The Company announced its revenue forecast for the third quarter of fiscal 2009. ScanSource expects net revenues for the March 2009 quarter could range from $450 million to $470 million.

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 including but not limited to macroeconomic circumstances that could impact our business, such as currency fluctuations, continued adverse capital and credit market conditions and a prolonged economic downturn. For more information concerning factors that could cause actual results to differ from anticipated results, see the Company’s annual report on Form 10-K for the year ended June 30, 2008 filed with the Securities and Exchange Commission.

About ScanSource

ScanSource, Inc. (NASDAQ:SCSC) is a leading international distributor of specialty technology products, consisting of seven sales units in North America, Latin America and Europe.

2

ScanSource Reports Second Quarter Results

ScanSource POS and Barcoding in North America, Latin America and Europe delivers AIDC and POS solutions; Catalyst Telecom in the U.S. and ScanSource Communications in North America and Europe, provide voice, video and converged communications equipment; and ScanSource Security in North America offers physical security solutions. Founded in 1992, the company ranks #901 on the Fortune 1000. For more information, call the toll-free sales telephone number at 800.944.2432 or visit www.scansourceinc.com.

3

ScanSource Reports Second Quarter Results

SCANSOURCE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

	December 31, 2008		June 30,
	(unaudited)		2008 *
Assets
Current Assets
Cash and cash equivalents	$	85,477	$	15,224
Trade & notes receivable, net		287,277		360,154
Other receivables		8,418		8,052
Inventories		266,213		280,077
Prepaid expenses and other assets		6,223		5,556
Deferred income taxes		12,453		11,428
Total current assets		666,061		680,491
Property and equipment, net		23,531		22,420
Goodwill		32,954		36,121
Other assets, including identifiable intangible assets		31,324		33,174
Total assets	$	753,870	$	772,206
Liabilities and Shareholders’ Equity
Current Liabilities
Current portion of long-term debt	$	—	$	—
Short-term borrowings		4,225		7,649
Trade accounts payable		243,725		265,284
Accrued expenses and other liabilities		28,771		38,922
Total current liabilities		276,721		311,855
Long-term debt		30,369		29,576
Borrowings under revolving credit facility		20,000		27,047
Other long-term liabilities		9,431		7,975
Total liabilities		336,521		376,453
Shareholders’ Equity
Common stock		100,427		96,097
Retained earnings		316,089		290,134
Accumulated other comprehensive income		833		9,522
Total shareholders’ equity		417,349		395,753
Total liabilities and shareholders’ equity	$	753,870	$	772,206

* Derived from audited financial statements at June 30, 2008.

4

ScanSource Reports Second Quarter Results

SCANSOURCE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED INCOME STATEMENTS (UNAUDITED)

(In thousands, except per share data)

	Quarter ended						Six months ended
	December 31,						December 31,
	2008			2007			2008			2007
Net sales	$	477,093		$	553,344		$	1,016,918		$	1,107,035
Cost of goods sold		424,765			494,167			909,088			989,734
Gross profit		52,328			59,177			107,830			117,301
Selling, general and administrative expenses		33,934			33,743			68,808			66,514
Operating income		18,394			25,434			39,022			50,787
Other expense (income):
Interest expense		623			1,274			1,202			3,399
Interest income		(424	)		(404	)		(775	)		(707	)
Other expense (income)		(2,559	)		(251	)		(2,284	)		(403	)
Other expense (income), net		(2,360	)		619			(1,857	)		2,289
Income before income taxes		20,754			24,815			40,879			48,498
Provision for income taxes		7,229			9,365			14,923			18,361
Net income	$	13,525		$	15,450		$	25,956		$	30,137
Per share data:
Net income per common share, basic	$	0.51		$	0.60		$	0.99		$	1.16
Weighted-average shares outstanding, basic		26,411			25,899			26,244			25,883
Net income per common share, diluted	$	0.51		$	0.59		$	0.98		$	1.15
Weighted-average shares outstanding, diluted		26,540			26,330			26,422			26,293

5