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 22, 2010

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 22, 2010, ScanSource, Inc. issued a press release announcing its financial results for the third quarter and nine months ended March 31, 2010. 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 22, 2010. 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 22, 2010	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

Specialty distributor achieves 27% revenue growth

GREENVILLE, SC — April 22, 2010—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, 2010.

Quarter ended March 31, 2010:

Net sales	$	496 million
Net income	$	12.0 million
Diluted EPS	$	0.45 per share

“We were pleased with the improving widespread demand in our POS/AIDC business; however, revenues were less than expected due to product shortages,” said Mike Baur, CEO, ScanSource, Inc. “Although our Communications business had significant year over year revenue growth, the March quarter demand was weaker than expected.”

For the quarter ended March 31, 2010, net sales increased 27.3% to $496 million compared to $390 million for the quarter ended March 31, 2009. Operating income also increased by 25.5% to $19.0 million from $15.1 million in the comparable prior year quarter. Net income increased 30.2% to $12.0 million for the quarter ended March 31, 2010 versus $9.2 million for the quarter ended

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ScanSource Reports Third Quarter Results

March 31, 2009. The effective tax rate for the quarter was 36.5%, compared to 37.6% for the prior year quarter. Diluted earnings per share increased 28.6% to $0.45 in the current quarter compared to $0.35 in the prior year quarter.

Outlook for Next Quarter

The Company announced its net revenue outlook for the fourth quarter of fiscal 2010. ScanSource expects net revenues for the June 2010 quarter could range from $530 million to $550 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. The statements in this press release are made as of the date hereof even if subsequently made available on ScanSource’s website or otherwise. ScanSource does not assume any obligation to update the forward looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made. 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, 2009 filed with the Securities and Exchange Commission.

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ScanSource Reports Third Quarter Results

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 Third Quarter Results

ScanSource, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets (Unaudited)

(in thousands)

	March 31,			June 30,
	2010			2009*
Assets
Current assets:
Cash and cash equivalents	$	29,677		$	127,664
Trade & notes receivable		326,773			291,037
Other receivables		5,624			7,676
Inventories		312,532			216,829
Prepaid expenses and other assets		13,155			10,356
Deferred income taxes		7,881			8,735
Total current assets		695,642			662,297
Property and equipment, net		22,677			21,035
Goodwill		33,219			34,087
Other assets, including identifiable intangible assets		35,259			31,212
Total assets	$	786,797		$	748,631
Liabilities and Shareholders’ Equity
Current liabilities:
Current portion of long-term debt	$	—		$	—
Trade accounts payable		225,695			228,408
Accrued expenses and other liabilities		35,217			30,443
Income taxes payable		4,317			3,799
Total current liabilities		265,229			262,650
Deferred income taxes		—			—
Long-term debt		30,429			30,429
Borrowings under revolving credit facility		—			—
Other long-term liabilities		12,956			10,106
Total liabilities		308,614			303,185
Shareholder’s equity:
Common stock		109,790			104,461
Retained earnings		372,585			337,822
Accumulated other comprehensive income		(4,192	)		3,163
Total shareholders’ equity		478,183			445,446
Total liabilities and shareholders’ equity	$	786,797		$	748,631

* Derived from audited financial statements at June 30, 2009.

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ScanSource Reports Third Quarter Results

Condensed Consolidated Income Statements (Unaudited)

(in thousands, except per share information)

	Quarter ended						Nine months ended
	March 31,						March 31,
	2010			2009			2010			2009
Net sales	$	496,102		$	389,815		$	1,532,637		$	1,406,733
Cost of goods sold		441,711			342,280			1,370,532			1,251,368
Gross profit		54,391			47,535			162,105			155,365
Operating expenses:
Selling, general and administrative expenses		35,414			32,418			107,312			101,225
Operating income		18,977			15,117			54,793			54,140
Other expense (income):
Interest expense		377			609			1,107			1,810
Interest income		(474	)		(344	)		(1,159	)		(1,119	)
Other, net		156			54			99			(2,228	)
Other expense (income)		59			319			47			(1,537	)
Income before income taxes		18,918			14,798			54,746			55,677
Provision for income taxes		6,904			5,569			19,982			20,493
Net income	$	12,014		$	9,229		$	34,764		$	35,184
Per share data:
Net income per common share, basic	$	0.45		$	0.35		$	1.31		$	1.33
Weighted-average shares outstanding, basic		26,608			26,463			26,583			26,412
Net income per common share, diluted	$	0.45		$	0.35		$	1.30		$	1.32
Weighted-average shares outstanding, diluted		26,884			26,565			26,844			26,572

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