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 23, 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 April 23, 2009, ScanSource, Inc. issued a press release announcing its financial results for the third quarter ended March 31, 2009. 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 April 23, 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: April 24, 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 THIRD QUARTER RESULTS

GREENVILLE, SC – April 23, 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 third quarter ended March 31, 2009.

Quarter End 3/31/09 capsule:
Net sales	$390 million
Net income	$9.2 million
Diluted EPS	$0.35 per share

“Although we are disappointed in the weak sales results across all of our businesses,” said Mike Baur, CEO, ScanSource, Inc., “we are satisfied with our overall operating results.”

For the quarter ended March 31, 2009, net sales decreased 24.2% to $390 million compared to $514 million for the quarter ended March 31, 2008. Quarterly operating income decreased 20.4% to $15.1 million from $19.0 million for the comparable prior year quarter. The effective tax rate for the quarter was 37.6%, compared to 38.8% for the prior year quarter. Net income decreased 16.3% to $9.2

ScanSource Reports Third Quarter Results

million for the quarter ended March 31, 2009 versus $11.0 million for the quarter ended March 31, 2008.

Forecast for Next Quarter

The Company announced its revenue forecast for the fourth quarter of fiscal 2009. ScanSource expects net revenues for the June 2009 quarter could range from $390 million to $430 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.

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 #854 on the

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ScanSource Reports Third Quarter Results

Fortune 1000. For more information, call the toll-free sales telephone number at 800.944.2432 or visit www.scansourceinc.com.

SCANSOURCE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

	March 31, 2009 (unaudited)			June 30, 2008 *
Assets
Current Assets
Cash and cash equivalents	$	114,391		$	15,224
Trade & notes receivable, net		252,919			360,154
Other receivables		5,837			8,052
Inventories		218,407			280,077
Prepaid expenses and other assets		5,539			5,556
Deferred income taxes		11,593			11,428
Total current assets		608,686			680,491
Property and equipment, net		22,516			22,420
Goodwill		32,705			36,121
Other assets, including identifiable intangible assets		30,645			33,174
Total assets	$	694,552		$	772,206
Liabilities and Shareholders’ Equity
Current Liabilities
Current portion of long-term debt	$	—		$	—
Short-term borrowings		—			7,649
Trade accounts payable		197,907			265,284
Accrued expenses and other liabilities		29,530			38,922
Total current liabilities		227,437			311,855
Long-term debt		30,429			29,576
Borrowings under revolving credit facility		—			27,047
Other long-term liabilities		9,332			7,975
Total liabilities		267,198			376,453
Shareholders’ Equity
Common stock		102,888			96,097
Retained earnings		325,318			290,134
Accumulated other comprehensive income (loss)		(852	)		9,522
Total shareholders’ equity		427,354			395,753
Total liabilities and shareholders’ equity	$	694,552		$	772,206

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

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ScanSource Reports Third Quarter Results

SCANSOURCE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED INCOME STATEMENTS (UNAUDITED)

(In thousands, except per share data)

	Quarter ended March 31,						Nine months ended March 31,
	2009			2008			2009			2008
Net sales	$	389,815		$	514,420		$	1,406,733		$	1,621,455
Cost of goods sold		342,280			462,701			1,251,368			1,452,435
Gross profit		47,535			51,719			155,365			169,020
Selling, general and administrative expenses		32,418			32,723			101,225			99,238
Operating income		15,117			18,996			54,140			69,782
Other expense (income):
Interest expense		609			1,097			1,810			4,496
Interest income		(344	)		(401	)		(1,119	)		(1,108	)
Other expense (income)		54			286			(2,228	)		(118	)
Other expense (income), net		319			982			(1,537	)		3,270
Income before income taxes		14,798			18,014			55,677			66,512
Provision for income taxes		5,569			6,986			20,492			25,347
Net income	$	9,229		$	11,028		$	35,185		$	41,165
Per share data:
Net income per common share, basic	$	0.35		$	0.42		$	1.33		$	1.59
Weighted-average shares outstanding, basic		26,463			26,038			26,412			25,934
Net income per common share, diluted	$	0.35		$	0.42		$	1.32		$	1.56
Weighted-average shares outstanding, diluted		26,565			26,423			26,572			26,325

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