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 20, 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 August 20, 2009, ScanSource, Inc. issued a press release announcing its financial results for the fourth quarter and fiscal year ended June 30, 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 August 20, 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: August 20, 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 FOURTH QUARTER AND YEAR-END RESULTS

GREENVILLE, SC — August 20, 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 fourth quarter and fiscal year ended June 30, 2009.

Quarter ended June 30, 2009:		Fiscal Year ended June 30, 2009:
Net Sales	$441 million	Net Sales	$1,848 million
Net Income	$12.5 Million	Net Income	$47.7 million
Diluted EPS	$0.47 per share	Diluted EPS	$1.79 per share

“In our fourth quarter, we had excellent results in certain areas of our business, specifically our Security and Communications sales units,” said Mike Baur, CEO, ScanSource, Inc. “Overall, we are pleased with our North American sales results, which are improving. And while our International business remains flat, we continue to be cautiously optimistic.”

For the quarter ended June 30, 2009, net sales decreased 20.4% to $441 million compared to $554 million for the quarter ended June 30, 2008. Quarterly operating income also decreased 17.4% to $20.0 million from $24.2 million for the comparable prior year quarter. Net income decreased 13.6% to $12.5 million for the quarter ended June 30, 2009 versus $14.5 million for the quarter ended

ScanSource Reports Fourth Quarter and Year End Results

June 30, 2008. The effective tax rate for the quarter was 37.4%, compared to 39.0% for the prior year quarter. Diluted earnings per share decreased 13.0% to $0.47 compared to $0.54 in the prior year quarter.

For the year ended June 30, 2009, net sales decreased 15.1% to $1.85 billion, compared to $2.18 billion for the prior year ended June 30, 2008. Fiscal year operating income also decreased 21.1% to $74.1 million from $94.0 million for the comparable prior fiscal year. Net income decreased 14.3% to $47.7 million compared to $55.6 million for the prior fiscal year ended June 30, 2008. The effective tax rate for the year was 37.0% compared to 38.3% for the prior fiscal year. Diluted earnings per share decreased 14.8% to $1.79 compared to $2.10 in the prior year.

Forecast for Next Quarter

The Company announced its revenue forecast for the first quarter of fiscal 2010. ScanSource expects net revenues for the September 2009 quarter could range from $445 million to $465 million.

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 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, and the Company’s annual report on Form 10-K for the year ended June 30, 2009 to be filed with, the Securities and Exchange Commission.

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

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ScanSource Reports Fourth Quarter and Year End Results

SCANSOURCE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(In thousands)

	June 30, 2009		June 30, 2008*
Assets
Current assets:
Cash and cash equivalents	$	127,664	$	15,224
Trade & notes receivable		291,037		360,154
Other receivables		7,676		8,052
Inventories		216,829		280,077
Prepaid expenses and other assets		5,486		5,556
Deferred income taxes		8,735		11,428
Total current assets		657,427		680,491
Property and equipment, net		21,035		22,420
Goodwill		34,087		36,121
Other assets, including identifiable intangible assets		36,082		33,174
Total assets	$	748,631	$	772,206
Liabilities and Shareholders’ Equity
Current liabilities:
Current portion of long-term debt	$	—	$	—
Short-term borrowings		—		7,649
Trade accounts payable		228,408		265,284
Accrued expenses and other liabilities		30,443		34,337
Income taxes payable		3,799		4,585
Total current liabilities		262,650		311,855
Deferred income taxes		—		—
Long-term debt		30,429		29,576
Borrowings under revolving credit facility		—		27,047
Other long-term liabilities		10,106		7,975
Total liabilities		303,185		376,453
Shareholder’s equity:
Common stock		104,461		96,097
Retained earnings		337,822		290,134
Accumulated other comprehensive income		3,163		9,522
Total shareholders’ equity		445,446		395,753
Total liabilities and shareholders’ equity	$	748,631	$	772,206

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

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ScanSource Reports Fourth Quarter and Year End Results

SCANSOURCE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED INCOME STATEMENTS (UNAUDITED)

(In thousands, except per share information)

	Quarter ended June 30,						Fiscal year ended June 30,
	2009			2008			2009			2008
Net sales	$	441,236		$	554,030		$	1,847,969		$	2,175,485
Cost of goods sold		387,753			495,432			1,639,121			1,947,867
Gross profit		53,483			58,598			208,848			227,618
Operating expenses:
Selling, general and administrative expenses		33,505			34,415			134,730			133,653
Operating income		19,978			24,183			74,118			93,965
Other expense (income):
Interest expense		366			974			2,176			5,471
Interest income		(286	)		(404	)		(1,405	)		(1,512	)
Other, net		(78	)		(93	)		(2,307	)		(212	)
Other expense (income)		2			477			(1,536	)		3,747
Income before income taxes		19,976			23,706			75,654			90,218
Provision for income taxes		7,473			9,239			27,966			34,586
Net income	$	12,503		$	14,467		$	47,688		$	55,632
Per share data:
Net income per common share, basic	$	0.47		$	0.55		$	1.80		$	2.13
Weighted-average shares outstanding, basic		26,542			26,307			26,445			26,098
Net income per common share, diluted	$	0.47		$	0.54		$	1.79		$	2.10
Weighted-average shares outstanding, diluted		26,704			26,549			26,588			26,445

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