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, 28, 2011

SCANSOURCE INC

(Exact name of registrant as specified in its charter)

Commission File Number: 000-26926

SC	57-0965380
(State or other jurisdiction of incorporation)	(IRS Employer Identification No.)

6 Logue Court, Greenville, SC 29615

(Address of principal executive offices, including zip code)

864-288-2432

(Registrant’s telephone number, including area code)

(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:

¨ 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 28, 2011, ScanSource, Inc. issued a press release announcing its financial results for the third quarter ended March 31, 2011. 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 28, 2011. 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 28, 2011	By:	/S/ Richard P. Cleys
	Name:	Richard P. Cleys
	Its:	Vice President and Chief Financial Officer

EX-99.1

Exhibit 99.1

ScanSource Reports Third Quarter Results

FOR IMMEDIATE RELEASE

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

SCANSOURCE REPORTS THIRD QUARTER RESULTS

Strong earnings on 24% sales growth

GREENVILLE, SC — April 28, 2011—ScanSource, Inc. (NASDAQ:SCSC), the leading international distributor of AIDC (automatic identification and data capture), point of sale, communications, and physical security products for the reseller market, today announced complete financial results for its third quarter ended March 31, 2011.

Quarter ended March 31, 2011:

Net sales	$613 million
Net income	$16.5 million
Diluted EPS	$0.60 per share

“The ScanSource team delivered excellent bottom line results despite lower than expected revenues,” said Mike Baur, CEO, ScanSource, Inc. “All of our geographies experienced stronger demand compared to last year, although we closed fewer large deals. A favorable combination of customer mix and product mix led to higher gross margins and very good earnings per share.”

For the quarter ended March 31, 2011, net sales increased 24% to $613.5 million compared to $496.1 million for the quarter ended March 31, 2010. Operating income increased by 34% to $25.5 million from $19.0 million in the comparable prior year quarter. Net income increased 38% to $16.5 million for the quarter ended March 31, 2011 versus $12.0 million for the quarter ended March 31, 2010. The effective tax rate for the quarter decreased to 34% in the current quarter from 36.5% in the prior year quarter. Diluted earnings per share increased 33% to $0.60 in the current quarter compared to $0.45 in the prior year quarter.

ScanSource Reports Third Quarter Results

Forecast for Next Quarter

The Company announced its revenue forecast for the fourth quarter of fiscal 2011. ScanSource expects that net revenues for the quarter ending June 2011 could range from $700 million to $720 million. This forecast includes two and a half months of revenues from the Company’s new Brazilian subsidiary, CDC Brasil, S.A., which was acquired on April 15, 2011. Previously, the Company had disclosed the trailing 12 months revenues of CDC Brasil, S.A. as of December 31, 2010 of R$246 million (approximately $140.4 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 or forecasted results, including, but not limited to, factors affecting our expanded operations in emerging markets, such as Brazil, that expose us to greater political and economic volatility than our operations in established markets, the results of purchase accounting, macroeconomic circumstances that could impact our business, such as currency fluctuations, continued adverse capital and credit market conditions and a continued economic downturn. For more information concerning factors that could cause actual results to differ from anticipated or forecasted results, see the Company’s annual report on Form 10-K for the year ended June 30, 2010 filed with the Securities and Exchange Commission.

ScanSource Reports Third Quarter Results

About ScanSource, Inc.

ScanSource, Inc. (NASDAQ:SCSC) is the 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 #881 on the Fortune 1000. For more information, call the toll-free sales telephone number at 800.944.2432 or visit www.scansourceinc.com.

ScanSource Reports Third Quarter Results

ScanSource, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets (Unaudited)

(in thousands)

	March 31, 2011		June 30, 2010 *
Assets
Current assets:
Cash and cash equivalents	$	31,181	$	34,605
Accounts receivable, less allowance of		383,634		357,749
$21,613 at March 31, 2011
$21,907 at June 30, 2010
Inventories		401,237		346,610
Prepaid expenses and other assets		28,801		16,762
Deferred income taxes		12,148		12,066
Total current assets		857,001		767,792
Property and equipment, net		31,320		23,528
Goodwill		34,467		33,785
Other assets, including identifiable intangible assets		42,667		34,645
Total assets	$	965,455	$	859,750
Liabilities and Shareholders’ Equity
Current liabilities:
Current portion of long-term debt	$	—	$	—
Short-term borrowings		1,999		—
Accounts payable		291,298		287,864
Accrued expenses and other liabilities		49,237		35,027
Income taxes payable		7,290		7,948
Total current liabilities		349,824		330,839
Long-term debt		30,429		30,429
Borrowings under revolving credit facility		2,115		—
Other long-term liabilities		21,015		11,631
Total liabilities		403,383		372,899
Shareholders’ equity:
Common stock		119,999		111,951
Retained earnings		440,496		386,634
Accumulated other comprehensive loss		1,577		(11,734	)
Total shareholders’ equity		562,072		486,851
Total liabilities and shareholders’ equity	$	965,455	$	859,750

* Derived from audited financial statements at June 30, 2010.

ScanSource Reports Third Quarter Results

ScanSource, Inc. and Subsidiaries

Condensed Consolidated Income Statements (Unaudited)

(in thousands, except per share information)

	Quarter ended March 31,						Nine months ended March 31,
	2011			2010			2011			2010
Net sales	$	613,466		$	496,102		$	1,931,641		$	1,532,637
Cost of goods sold		547,637			441,711			1,731,704			1,370,532
Gross profit		65,829			54,391			199,937			162,105
Operating expenses:
Selling, general and administrative expenses		40,349			35,414			116,071			107,312
Operating income		25,480			18,977			83,866			54,793
Other expense (income):
Interest expense		429			377			1,182			1,107
Interest income		(313	)		(474	)		(918	)		(1,159	)
Other, net		300			156			492			99
Income before income taxes		25,064			18,918			83,110			54,746
Provision for income taxes		8,530			6,904			29,248			19,982
Net income	$	16,534		$	12,014		$	53,862		$	34,764
Per share data:
Net income per common share, basic	$	0.61		$	0.45		$	2.01		$	1.31
Weighted-average shares outstanding, basic		26,938			26,608			26,811			26,583
Net income per common share, diluted	$	0.60		$	0.45		$	1.98		$	1.30
Weighted-average shares outstanding, diluted		27,413			26,884			27,182			26,844