EX-99.1 2 c72244exv99w1.htm EXHIBIT 99.1 Filed by Bowne Pure Compliance
 

Exhibit 99.1
(INSIGHT LOGO)
     
FOR IMMEDIATE RELEASE
  Nasdaq: NSIT
INSIGHT ENTERPRISES, INC. REPORTS FOURTH QUARTER AND
FULL YEAR 2007 RESULTS
Q4 2007 Net Sales — $1.28 Billion; Diluted EPS — $0.50
2007 Full Year Net Sales — $4.80 Billion; Diluted EPS — $1.56
TEMPE, Ariz. – February 6, 2008 – Insight Enterprises, Inc. (Nasdaq: NSIT) (the “Company”) today reported results of operations for the quarter and year ended December 31, 2007.
Fourth Quarter and 2007 Full Year Highlights
    Net sales for the fourth quarter increased 5% to $1.28 billion, and annual net sales increased 34% to $4.80 billion.
 
    Gross profit for the fourth quarter grew 10% to $173.3 million, and annual gross profit grew 40% to $661.1 million.
 
    Net earnings from continuing operations for the fourth quarter increased 29% to $23.8 million, while annual net earnings from continuing operations increased 13% to $72.0 million.
 
    Diluted EPS from continuing operations for the fourth quarter increased 30% to $0.48, while annual diluted EPS from continuing operations increased 10% to $1.44.
 
    Q4 2007 results include expenses of $334,000, $201,000 net of tax, for professional fees and costs associated with our stock option review, while 2007 full year results include expenses of $13.0 million, $7.9 million net of tax, for such professional fees and costs and $2.6 million, $1.5 million net of tax, for severance and restructuring expenses. Q4 2006 and full year 2006 results include expenses of $1.6 million, $1.0 million net of tax, for professional fees associated with our stock option review and $729,000, $454,000 net of tax, for severance and restructuring expenses.
“I am very pleased to announce that the overall performance of our geographic operating segments produced a solid fourth quarter, which provided a strong ending to a successful 2007,” said Rich Fennessy, President and Chief Executive Officer. “As expected, our business delivered a seasonally-stronger fourth quarter, and for the full year our overall financial results exceeded our own internal expectations.”
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Insight Enterprises, Inc.
  1305 West Auto Drive   Tempe, Arizona 85284   480-902-1001   FAX 480-760-8958

 

 


 

     
Insight Q4 2007 Results, Page 2
  February 6, 2008
Financial Summary Table
(in thousands, except per share data and percentages)
                                                 
    Three Months Ended December 31,     Year Ended December 31,  
    2007     2006     % change     2007     2006     % change  
Insight Enterprises, Inc.
                                               
Net sales
  $ 1,283,302     $ 1,222,167       5 %   $ 4,800,431     $ 3,593,256       34 %
Gross profit
  $ 173,254     $ 158,077       10 %   $ 661,088     $ 470,657       40 %
Earnings from operations
  $ 40,011     $ 32,537       23 %   $ 126,102     $ 100,539       25 %
Operating margin
    3.1 %     2.7 %             2.6 %     2.8 %        
Net earnings from continuing operations
  $ 23,810     $ 18,414       29 %   $ 72,011     $ 63,734       13 %
Diluted EPS from continuing operations
  $ 0.48     $ 0.37       30 %   $ 1.44     $ 1.31       10 %
Net earnings
  $ 24,622     $ 18,867       31 %   $ 77,795     $ 76,818       1 %
Diluted EPS
  $ 0.50     $ 0.38       32 %   $ 1.56     $ 1.58       (1 %)
 
                                               
North America
                                               
Net sales
  $ 844,108     $ 880,811       (4 %)   $ 3,362,955     $ 2,852,997       18 %
Gross profit
  $ 116,685     $ 115,418       1 %   $ 471,808     $ 370,572       27 %
Earnings from operations
  $ 24,668     $ 24,619           $ 87,345     $ 82,161       6 %
 
                                               
EMEA
                                               
Net sales
  $ 405,724     $ 317,911       28 %   $ 1,329,682     $ 710,294       87 %
Gross profit
  $ 49,358     $ 38,750       27 %   $ 168,583     $ 95,184       77 %
Earnings from operations
  $ 12,686     $ 7,094       79 %   $ 33,265     $ 17,269       93 %
 
                                               
APAC
                                               
Net sales
  $ 33,470     $ 23,445       43 %   $ 107,794     $ 29,965       260 %
Gross profit
  $ 7,211     $ 3,909       84 %   $ 20,697     $ 4,901       322 %
Earnings from operations
  $ 2,657     $ 824       222 %   $ 5,492     $ 1,109       395 %
Effective Tax Rate
Our effective tax rate from continuing operations for the three months ended December 31, 2007 was 37.5% compared to 37.7% for the three months ended December 31, 2006. Our effective tax rate from continuing operations for the full year 2007 was 38.5% compared to 35.2% for 2006. The effective tax rate for the full year is higher in 2007 due to an increase in our tax reserves. Further, our 2006 effective tax rate reflects the reversal of accrued income taxes resulting from the determination that a reserve previously recorded for potential tax exposures was no longer necessary.
OPERATING SEGMENTS
We operate in three reportable geographic operating segments: North America; EMEA (Europe, the Middle East and Africa); and APAC (Asia-Pacific). Currently, our offerings in North America and the United Kingdom include brand-name IT hardware, software and services. Our offerings in the remainder of our EMEA segment and in APAC currently only include software and select software-related services. Our acquisition of Software Spectrum closed in September 2006, so our Q4 2007 and Q4 2006 consolidated results reflect a full quarter of that business on a year-over-year basis in each of our operating segments.
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Insight Enterprises, Inc.
  1305 West Auto Drive   Tempe, Arizona 85284   480-902-1001   FAX 480-760-8958

 

 


 

     
Insight Q4 2007 Results, Page 3
  February 6, 2008
North America
North America’s net sales for the three months ended December 31, 2007 decreased 4% to $844.1 million compared to net sales of $880.8 million for the three months ended December 31, 2006. The decline in net sales is related to the continued conversion of software sales to enterprise software agreements where only an agency fee is recognized in net sales and a decrease in hardware sales during the quarter.
For the three months ended December 31, 2007, our North American gross profit increased 1% to $116.7 million from $115.4 million for the three months ended December 31, 2006. North America’s gross profit as a percentage of net sales was 13.8% for the three months ended December 31, 2007, compared to 13.1% for the three months ended December 31, 2006. “The increase in gross margin was due primarily to an increase in agency fees for Microsoft enterprise software agreement renewals and the higher margin associated with our services business,” said Glynis Bryan, Chief Financial Officer.
North America’s selling and administrative expenses were 10.9% of net sales for the three months ended December 31, 2007, compared to selling and administrative expenses as a percentage of net sales of 10.3% for the three months ended December 31, 2006. “The increase compared to 2006 was predominantly a result of the lower net sales base in Q4 2007 and some duplicative costs associated with our back-office operations tied to our MySAP upgrade,” Bryan said. North America’s selling and administrative expenses for the three months ended December 31, 2007 and 2006 include expenses of approximately $0.3 million and $1.6 million, respectively, for professional fees and costs associated with our stock option review.
North America’s earnings from operations for the three months ended December 31, 2007 increased slightly to $24.7 million compared to $24.6 million for the three months ended December 31, 2006. North America’s earnings from operations as a percentage of net sales increased to 2.9% for the three months ended December 31, 2007 from 2.8% for the three months ended December 31, 2006.
EMEA
EMEA’s net sales for the three months ended December 31, 2007 increased 28% to $405.7 million, compared to net sales of $317.9 million for the three months ended December 31, 2006. The strong performance in EMEA includes higher net sales across all categories and the benefit of currency exchange rates between the weakening U.S. dollar year over year as compared to the various European currencies in which we do business. “Our strong overall consolidated financial results in the quarter benefited largely from the strength of our EMEA performance,” said Fennessy. “We experienced excellent growth in our EMEA hardware, software and services categories.”
In Q4 2007, our EMEA gross profit was $49.4 million, a 27% increase over the prior year. EMEA’s gross profit as a percentage of net sales remained consistent at 12.2% for the three months ended December 31, 2007 and 2006.
For the three months ended December 31, 2007, EMEA’s selling and administrative expenses were 9.1% of net sales compared with 10.0% in the same quarter of 2006. “The decrease from Q4 2006 was due primarily to increases in net sales,” said Bryan. “Selling and administrative expenses increased by $5.4 million from Q4 2006 to Q4 2007, primarily due to higher foreign currency exchange rates, higher compensation costs due to additional sales headcount and increased bonus expenses due to improved overall financial performance in EMEA.”
Additionally, the three months ended December 31, 2007 includes a $606,000 benefit related to a reduction in EMEA’s restructuring liability for remaining lease obligations on a previously vacated office property following a successful renegotiation of a portion of the long-term lease during the quarter. This amount was partially offset by $177,000 of severance expense during the quarter.
EMEA’s earnings from operations increased 79% in the three months ended December 31, 2007 to $12.7 million from $7.1 million in the three months ended December 31, 2006. EMEA’s earnings from operations as a percentage of net sales increased to 3.1% for the three months ended December 31, 2007 from 2.2% for the three months ended December 31, 2006.
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Insight Enterprises, Inc.
  1305 West Auto Drive   Tempe, Arizona 85284   480-902-1001   FAX 480-760-8958

 

 


 

     
Insight Q4 2007 Results, Page 4
  February 6, 2008
APAC
Our APAC segment recognized net sales of $33.5 million, recognized gross profit of $7.2 million and contributed $2.7 million to earnings from operations for the three months ended December 31, 2007. “We continue to be excited about our APAC segment, which is performing very well and continues to post strong growth in net sales and profitability,” said Bryan.
FORWARD-LOOKING STATEMENTS
For the full year 2008, we expect organic net sales to grow faster than the market growth rate, which we expect to be approximately 5% on a world-wide basis, and 2008 fully diluted earnings per share are expected to range between $1.80 and $1.95, of which 50% — 55% is expected to be recorded in the first half of the year.
These expectations reflect the following assumptions:
    An effective tax rate of 37% — 39% for the full year;
 
    Completion of the $50 million stock repurchase program authorized by the Company’s Board of Directors in November 2007; and
 
    Cash outlays for capital expenditures of approximately $30 million to $35 million.
CONFERENCE CALL AND WEBCAST
We will host a conference call and live Web cast today at 5:00 p.m. ET to discuss fourth quarter and full year results of operations. A live Web cast of the conference call (in listen-only mode) will be available on our corporate Web site at www.insight.com and a replay of the Web cast will be available on our corporate Web site for a limited time. To listen to the live Web cast by telephone, call 1-800-599-9816 and enter the access code 28283526.
FORWARD-LOOKING INFORMATION
Certain statements in this release and the related conference call and Web cast are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. Future events and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking statement. Some of the important factors that could cause our actual results to differ materially from those projected in any forward-looking statements, include, but are not limited to, the following, which are discussed in “Risk Factors” in Part I, Item 1A of our Annual Report on Form 10-K/A for the year ended December 31, 2006:
    changes in the information technology industry and/or the economic environment;
 
    our reliance on partners for product availability, marketing funds, purchasing incentives and competitive products to sell;
 
    disruptions in our information technology and voice and data networks, including the upgrade to mySAP and the migration of acquired businesses to our information technology and voice and data networks;
 
    the integration and operation of acquired businesses, including our ability to achieve expected benefits of the acquisition;
 
    actions of our competitors, including manufacturers/publishers of products we sell;
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Insight Enterprises, Inc.
  1305 West Auto Drive   Tempe, Arizona 85284   480-902-1001   FAX 480-760-8958

 

 


 

     
Insight Q4 2007 Results, Page 5
  February 6, 2008
    the informal inquiry from the SEC and the fact that we could be subject to stockholder litigation related to our historical stock option granting practices and the related restatement of our consolidated financial statements;
 
    the recently enacted changes in securities laws and regulations, including potential risk resulting from our evaluation of internal controls under the Sarbanes-Oxley Act of 2002;
 
    the risks associated with international operations;
 
    sales of software licenses are subject to seasonal changes in demand;
 
    increased debt and interest expense and lower availability on our financing facilities;
 
    increased exposure to currency exchange risks;
 
    our dependence on key personnel;
 
    risk that purchased goodwill or amortizable intangible assets become impaired;
 
    our failure to comply with the terms and conditions of our public sector contracts;
 
    risks associated with our limited experience in outsourcing business functions to India;
 
    rapid changes in product standards; and
 
    intellectual property infringement claims.
Additionally, there may be other risks that are otherwise described from time to time in the reports that we file with the SEC.
In addition, these forward-looking statements include statements regarding the informal inquiry commenced by the SEC and a stockholder’s demand to inspect our books and records pursuant to Section 220 of the Delaware General Corporation Law. There can be no assurances that forward-looking statements will be achieved, and actual results could differ materially from those suggested by the forward-looking statements. Important factors that could cause actual results to differ materially include: adjustments to the consolidated financial statements that may be required related to the SEC informal inquiry; and risks of litigation and governmental or other regulatory inquiry or proceedings arising out of or related to the Company’s historical stock option granting practices. Therefore, any forward-looking statements in this release should be considered in light of various important factors, including the risks and uncertainties listed above, as well as others.
We assume no obligation to update, and do not intend to update, any forward-looking statements. We do not endorse any projections regarding future performance that may be made by third parties.
         
Contacts:
  Glynis Bryan   Helen Johnson
 
  Chief Financial Officer   Senior VP, Treasurer and Investor Relations
 
  Tel. 480-333-3390    Tel. 480-333-3234 
 
  Email glynis.bryan@insight.com   Email helen.johnson@insight.com
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Insight Enterprises, Inc.
  1305 West Auto Drive   Tempe, Arizona 85284   480-902-1001   FAX 480-760-8958

 

 


 

     
Insight Q4 2007 Results, Page 6
  February 6, 2008
INSIGHT ENTERPRISES, INC. AND SUBSIDIARIES
Consolidated Statements of Earnings
(In thousands, except per share data)
(Unaudited)
                                 
    Three Months Ended     Year Ended  
    December 31,     December 31,  
    2007     2006     2007     2006  
Net sales
  $ 1,283,302     $ 1,222,167     $ 4,800,431     $ 3,593,256  
Costs of goods sold
    1,110,048       1,064,090       4,139,343       3,122,599  
 
                       
Gross profit
    173,254       158,077       661,088       470,657  
Operating expenses:
                               
Selling and administrative expenses
    133,489       125,540       532,391       369,389  
Severance and restructuring expenses
    (246 )           2,595       729  
 
                       
Earnings from operations
    40,011       32,537       126,102       100,539  
Non-operating (income) expense:
                               
Interest income
    (592 )     (697 )     (2,078 )     (4,355 )
Interest expense
    3,221       4,460       13,367       6,793  
Net foreign currency exchange gain
    (1,080 )     (587 )     (3,887 )     (1,135 )
Other expense (income), net
    390       (200 )     1,531       901  
 
                       
Earnings from continuing operations before income taxes
    38,072       29,561       117,169       98,335  
Income tax expense
    14,262       11,147       45,158       34,601  
 
                       
Net earnings from continuing operations
    23,810       18,414       72,011       63,734  
Net earnings from discontinued operations
    812       453       5,784       13,084  
 
                       
Net earnings
  $ 24,622     $ 18,867     $ 77,795     $ 76,818  
 
                       
 
                               
Net earnings per share — Basic:
                               
Net earnings from continuing operations
  $ 0.49     $ 0.38     $ 1.47     $ 1.32  
Net earnings from discontinued operations
    0.02       0.01       0.12       0.27  
 
                       
Net earnings per share
  $ 0.51     $ 0.39     $ 1.59     $ 1.59  
 
                       
 
                               
Net earnings per share — Diluted:
                               
Net earnings from continuing operations
  $ 0.48     $ 0.37     $ 1.44     $ 1.31  
Net earnings from discontinued operations
    0.02       0.01       0.12       0.27  
 
                       
Net earnings per share
  $ 0.50     $ 0.38     $ 1.56     $ 1.58  
 
                       
 
                               
Shares used in per share calculations:
                               
Basic
    48,582       48,802       49,055       48,373  
 
                       
Diluted
    49,635       49,131       49,760       48,564  
 
                       
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Insight Enterprises, Inc.
  1305 West Auto Drive   Tempe, Arizona 85284   480-902-1001   FAX 480-760-8958

 

 


 

     
Insight Q4 2007 Results, Page 7
  February 6, 2008
INSIGHT ENTERPRISES, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(In thousands)
(Unaudited)
                 
    December 31,     December 31,  
    2007     2006  
ASSETS
               
Current assets:
               
Cash and cash equivalents
  $ 56,718     $ 54,697  
Accounts receivable, net
    1,072,612       994,892  
Inventories
    98,863       97,751  
Inventories not available for sale
    21,450       31,112  
Deferred income taxes
    22,020       20,770  
Other current assets
    38,916       32,359  
 
           
Total current assets
    1,310,579       1,231,581  
 
               
Property and equipment, net
    158,467       145,778  
Goodwill
    306,742       296,781  
Intangible assets, net
    80,922       86,929  
Deferred income taxes
    392       927  
Other long-term assets
    10,076       18,269  
 
           
 
  $ 1,867,178     $ 1,780,265  
 
           
 
               
LIABILITIES AND STOCKHOLDERS’ EQUITY
               
Current liabilities:
               
Accounts payable
  $ 685,578     $ 611,367  
Accrued expenses and other current liabilities
    113,891       136,401  
Current portion of long-term debt
    15,000       15,000  
Deferred revenue
    42,885       40,728  
Line of credit
          15,000  
 
           
Total current liabilities
    857,354       818,496  
 
               
Long-term debt
    187,250       224,250  
Long-term deferred income taxes
    27,305       25,517  
Other long-term liabilities
    20,075       21,652  
 
           
 
    1,091,984       1,089,915  
 
           
 
               
Stockholders’ equity:
               
Preferred stock
           
Common stock
    485       489  
Additional paid-in capital
    386,139       363,308  
Retained earnings
    340,641       297,664  
Accumulated other comprehensive income – foreign currency translation adjustment
    47,929       28,889  
 
           
Total stockholders’ equity
    775,194       690,350  
 
           
 
  $ 1,867,178     $ 1,780,265  
 
           
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Insight Enterprises, Inc.
  1305 West Auto Drive   Tempe, Arizona 85284   480-902-1001   FAX 480-760-8958

 

 


 

     
Insight Q4 2007 Results, Page 8
  February 6, 2008
INSIGHT ENTERPRISES, INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
                 
    Year Ended December 31,  
    2007     2006  
Cash flows from operating activities:
               
Net earnings from continuing operations
  $ 72,011     $ 63,734  
Plus: net earnings from discontinued operations
    5,784       13,084  
 
           
Net earnings
    77,795       76,818  
Adjustments to reconcile net earnings to net cash provided by operating activities:
               
Depreciation and amortization
    34,533       25,372  
Provision for losses on accounts receivable
    2,646       3,033  
Write-downs of inventories
    6,900       8,442  
Non-cash stock-based compensation
    11,540       13,731  
Gain on sale of discontinued operations
    (7,912 )     (14,872 )
Excess tax benefit from employee gains on stock-based compensation
    (486 )     (1,085 )
Deferred income taxes
    1,072       2,744  
Changes in assets and liabilities:
               
Increase in accounts receivable
    (64,793 )     (290,612 )
(Increase) decrease in inventories
    (4,378 )     21,287  
Decrease in other current assets
    4,159       10,152  
Increase in other assets
    (454 )     (8,370 )
Increase in accounts payable
    71,293       208,499  
Decrease in inventories financing facility
          (4,281 )
Increase in deferred revenue
    1,502       2,514  
(Decrease) increase in accrued expenses and other liabilities.
    (33,999 )     29,230  
 
           
Net cash provided by operating activities
    99,418       82,602  
 
           
Cash flows from investing activities:
               
Proceeds from sale of discontinued operations
    28,631       46,250  
Acquisition of Software Spectrum, net of cash acquired
          (321,167 )
Purchases of property and equipment
    (35,761 )     (34,242 )
 
           
Net cash used in investing activities
    (7,130 )     (309,159 )
 
           
Cash flows from financing activities:
               
Borrowings in short-term financing facility
          20,000  
Repayments on short-term financing facility
          (65,000 )
Borrowings on long-term financing facility
    682,000       291,000  
Repayments on long-term financing facility
    (704,000 )     (123,000 )
Borrowings on term loan
          75,000  
Repayments on term loan
    (15,000 )     (3,750 )
Repayments on line of credit
    (15,000 )     (6,309 )
Excess tax benefit from employee gains on stock-based compensation
    486       1,085  
Proceeds from sales of common stock under employee stock plans
    24,521       16,462  
Repurchases of common stock
    (50,000 )      
(Decrease) increase in book overdrafts
    (23,216 )     37,261  
 
           
Net cash (used in) provided by financing activities
    (100,209 )     242,749  
 
           
Net cash provided by discontinued operations
          105  
 
           
Foreign currency exchange effect on cash flow
    9,942       3,255  
 
           
Increase in cash and cash equivalents
    2,021       19,552  
Cash and cash equivalents at beginning of period
    54,697       35,145  
 
           
Cash and cash equivalents at end of period
  $ 56,718     $ 54,697  
 
           
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Insight Enterprises, Inc.
  1305 West Auto Drive   Tempe, Arizona 85284   480-902-1001   FAX 480-760-8958

 

 


 

     
Insight Q4 2007 Results, Page 9
  February 6, 2008
Insight Enterprises, Inc. and Subsidiaries
Quarterly Select Operating Segment Statistics
(unaudited)
                         
    Three Months Ended        
    December 31,        
    2007     2006     Change  
North America
                       
Number of shipping days
    64       62     2 days
Number of account executives
    1,349       1,259       7 %
Net sales per account executive  (a)
  $ 622,728     $ 768,597       (19 %)
Gross profit per account executive (b)
  $ 86,083     $ 100,714       (15 %)
Sales mix (as a % of net sales):
                       
Notebooks and PDA’s
    11 %     10 %     5 % (c)
Desktops and servers
    12 %     11 %     1 % (c)
Networking and connectivity
    11 %     11 %     (1 %)(c)
Storage devices
    5 %     6 %     (11 %)(c)
Printers
    5 %     5 %     (6 %)(c)
Memory and processors
    4 %     5 %     (20 %)(c)
Supplies and accessories
    4 %     5 %     (25 %)(c)
Monitors and video
    4 %     4 %     1 % (c)
Miscellaneous
    9 %     7 %     15 % (c)
 
                   
Hardware
    65 %     64 %     (2 %)(c)
Software
    32 %     34 %     (11 %)(c)
Services
    3 %     2 %     37 % (c)
 
                   
 
    100 %     100 %        
 
                   
 
                       
EMEA
                       
Number of shipping days (d)
    64       63     1 day
Number of account executives
    550       476       16 %
Net sales per account executive (a)
  $ 751,340     $ 828,974       (9 %)
Gross profit per account executive(b)
  $ 91,403     $ 101,043       (10 %)
Sales mix (as a % of net sales):
                       
Notebooks and PDA’s
    6 %     7 %     16 %  (c)
Desktops and servers
    5 %     6 %     11 %  (c)
Networking and connectivity
    3 %     4 %     7 % (c)
Storage devices
    3 %     3 %     28 % (c)
Printers
    3 %     3 %     4 % (c)
Memory and processors
    1 %     2 %     (12 %)(c)
Supplies and accessories
    3 %     3 %     8 % (c)
Monitors and video
    3 %     3 %           (c)
Miscellaneous
    2 %     3 %     18 % (c)
 
                   
Hardware
    29 %     34 %     11 % (c)
Software
    70 %     65 %     36 % (c)
Services
    1 %     1 %     28 % (c)
 
                   
 
    100 %     100 %        
 
                   
(a)   Calculated as net sales for the quarter divided by the average number of account executives. The average number of account executives is calculated as the number of account executives at the end of the quarter plus the number of account executives at the beginning of the quarter divided by two.
 
(b)   Calculated as gross profit for the quarter divided by the average number of account executives. The average number of account executives is calculated as the number of account executives at the end of the quarter plus the number of account executives at the beginning of the quarter divided by two.
 
(c)   Represents growth/decline in category net sales.
 
(d)   Represents shipping days for the United Kingdom as it makes up the largest percentage of net sales in our EMEA segment.
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Insight Enterprises, Inc.
  1305 West Auto Drive   Tempe, Arizona 85284   480-902-1001   FAX 480-760-8958

 

 


 

     
Insight Q4 2007 Results, Page 10
  February 6, 2008
INSIGHT ENTERPRISES, INC. AND SUBSIDIARIES
Operating Segment Statement of Earnings Information
(In thousands)
(unaudited)
                                 
    Three Months Ended December 31, 2007  
    North America     EMEA     APAC     Consolidated  
Net sales
  $ 844,108     $ 405,724     $ 33,470     $ 1,283,302  
Costs of goods sold
    727,423       356,366       26,259       1,110,048  
 
                       
Gross profit
    116,685       49,358       7,211       173,254  
Operating expenses:
                               
Selling and administrative expenses
    91,898       37,101       4,490       133,489  
Severance and restructuring expenses
    119       (429 )     64       (246 )
 
                       
Earnings from operations
  $ 24,668     $ 12,686     $ 2,657       40,011  
 
                         
Non-operating expense, net
                            1,939  
 
                             
Earnings from continuing operations before income taxes
                            38,072  
Income tax expense
                            14,262  
 
                             
Net earnings from continuing operations
                            23,810  
Net earnings from discontinued operation
                            812  
 
                             
Net earnings
                          $ 24,622  
 
                             
 
                               
Total assets
  $ 2,363,903     $ 576,989     $ 53,701     $ 1,867,178 *
 
                       
*   Consolidated total assets include corporate assets and intercompany eliminations for a net reduction of $1,127,415.
                                 
    Year Ended December 31, 2007  
    North America     EMEA     APAC     Consolidated  
Net sales
  $ 3,362,955     $ 1,329,682     $ 107,794     $ 4,800,431  
Costs of goods sold
    2,891,147       1,161,099       87,097       4,139,343  
 
                       
Gross profit
    471,808       168,583       20,697       661,088  
Operating expenses:
                               
Selling and administrative expenses
    381,503       135,747       15,141       532,391  
Severance and restructuring expenses
    2,960       (429 )     64       2,595  
 
                       
Earnings from operations
  $ 87,345     $ 33,265     $ 5,492       126,102  
 
                         
Non-operating expense, net
                            8,933  
 
                             
Earnings from continuing operations before income taxes
                            117,169  
Income tax expense
                            45,158  
 
                             
Net earnings from continuing operations
                            72,011  
Net earnings from discontinued operation
                            5,784  
 
                             
Net earnings
                          $ 77,795  
 
                             
 
                               
Total assets
  $ 2,363,903     $ 576,989     $ 53,701     $ 1,867,178 *
 
                       
*   Consolidated total assets include corporate assets and intercompany eliminations for a net reduction of $1,127,415.
- MORE -
                 
Insight Enterprises, Inc.
  1305 West Auto Drive   Tempe, Arizona 85284   480-902-1001   FAX 480-760-8958

 

 


 

     
Insight Q4 2007 Results, Page 11
  February 6, 2008
INSIGHT ENTERPRISES, INC. AND SUBSIDIARIES
Operating Segment Statement of Earnings Information (continued)
(In thousands)
(unaudited)
                                 
    Three Months Ended December 31, 2006  
    North America     EMEA     APAC     Consolidated  
Net sales
  $ 880,811     $ 317,911     $ 23,445     $ 1,222,167  
Costs of goods sold
    765,393       279,161       19,536       1,064,090  
 
                       
Gross profit
    115,418       38,750       3,909       158,077  
Operating expenses:
                               
Selling and administrative expenses
    90,799       31,656       3,085       125,540  
 
                       
Earnings from operations
  $ 24,619     $ 7,094     $ 824       32,537  
 
                         
Non-operating expense, net
                            2,976  
 
                             
Earnings from continuing operations before income taxes
                            29,561  
Income tax expense
                            11,147  
 
                             
Net earnings from continuing operations
                            18,414  
Net earnings from discontinued operations
                            453  
 
                             
Net earnings
                          $ 18,867  
 
                             
 
                               
Total assets
  $ 2,057,868     $ 460,359     $ 39,380     $ 1,780,265 *
 
                       
*   Consolidated total assets include corporate assets and intercompany eliminations for a net reduction of $777,342.
                                 
    Year Ended December 31, 2006  
    North America     EMEA     APAC     Consolidated  
Net sales
  $ 2,852,997     $ 710,294     $ 29,965     $ 3,593,256  
Costs of goods sold
    2,482,425       615,110       25,064       3,122,599  
 
                       
Gross profit
    370,572       95,184       4,901       470,657  
Operating expenses:
                               
Selling and administrative expenses
    287,903       77,694       3,792       369,389  
Severance and restructuring expenses
    508       221             729  
 
                       
Earnings from operations
  $ 82,161     $ 17,269     $ 1,109       100,539  
 
                         
Non-operating expense, net
                            2,204  
 
                             
Earnings from continuing operations before income taxes
                            98,335  
Income tax expense
                            34,601  
 
                             
Net earnings from continuing operations
                            63,734  
Net earnings from discontinued operations
                            13,084  
 
                             
Net earnings
                          $ 76,818  
 
                             
 
                               
Total assets
  $ 2,057,868     $ 460,359     $ 39,380     $ 1,780,265 *
 
                       
*   Consolidated total assets include corporate assets and intercompany eliminations for a net reduction of $777,342.
- ### -
                 
Insight Enterprises, Inc.
  1305 West Auto Drive   Tempe, Arizona 85284   480-902-1001   FAX 480-760-8958