-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, V7Ge9aZcZ3sPnHTImONPNy60dpwoKvVdSh5KUJYwINqOTR+bYjG+T+JnJsVjfEwo JnTEiVk7sDEl7iZBMEvGag== 0001362310-08-006762.txt : 20081106 0001362310-08-006762.hdr.sgml : 20081106 20081106162912 ACCESSION NUMBER: 0001362310-08-006762 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20081106 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20081106 DATE AS OF CHANGE: 20081106 FILER: COMPANY DATA: COMPANY CONFORMED NAME: INSIGHT ENTERPRISES INC CENTRAL INDEX KEY: 0000932696 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-CATALOG & MAIL-ORDER HOUSES [5961] IRS NUMBER: 860766246 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-25092 FILM NUMBER: 081167494 BUSINESS ADDRESS: STREET 1: 1305 WEST AUTO DRIVE CITY: TEMPE STATE: AZ ZIP: 85284 BUSINESS PHONE: 480-902-1001 MAIL ADDRESS: STREET 1: 1305 WEST AUTO DRIVE CITY: TEMPE STATE: AZ ZIP: 85284 8-K 1 c76761e8vk.htm FORM 8-K Filed by Bowne Pure Compliance
 
 

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): November 6, 2008

INSIGHT ENTERPRISES, INC.
(Exact name of registrant as specified in its charter)
         
Delaware   0-25092   86-0766246
(State or other Jurisdiction of Incorporation)   (Commission File Number)   (IRS Employer Identification No.)
     
1305 West Auto Drive, Tempe, Arizona
  85284
(Address of Principal Executive Offices)   (Zip Code)

Registrant’s telephone number, including area code: (480) 902-1001
 
Not Applicable
(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:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o 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 November 6, 2008, Insight Enterprises, Inc. announced by press release its results of operations for the three months ended September 30, 2008. A copy of the press release is attached hereto as Exhibit 99.1 and incorporated by reference herein. The information disclosed under this Item 2.02, including Exhibit 99.1 hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.

     
Exhibit
Number
 
Description
 
   
     
99.1
  Press release dated November 6, 2008.

 

 


 

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.

Insight Enterprises, Inc.

     
Date: November 6, 2008
By:  /s/ Glynis A. Bryan
 
   
 
  Glynis A. Bryan
Chief Financial Officer

 

 


 

EXHIBIT INDEX

     
Exhibit
Number
 
Description
 
   
     
99.1
  Press release dated November 6, 2008.

 

 

EX-99.1 2 c76761exv99w1.htm EXHIBIT 99.1 Filed by Bowne Pure Compliance
Exhibit 99.1
(LOGO)
     
FOR IMMEDIATE RELEASE   Nasdaq: NSIT
INSIGHT ENTERPRISES, INC. REPORTS THIRD QUARTER 2008 RESULTS
TEMPE, Ariz. — November 6, 2008 — Insight Enterprises, Inc. (Nasdaq: NSIT) (the “Company”) today reported results of operations for the three months ended September 30, 2008.
Third Quarter Highlights
    Net sales for the quarter increased 5% to $1.17 billion.
 
    Gross profit for the quarter grew 3% to $154.1 million.
 
    Net earnings from continuing operations for the quarter decreased to $6.7 million from $9.1 million.
 
    Diluted EPS from continuing operations for the quarter declined to $0.15 from $0.18.
 
    Third quarter 2008 results include $3.3 million of foreign currency losses, primarily resulting from the strengthening of the U.S. dollar against the Euro and the British Pound Sterling and the volatility of those exchange rates during the quarter. The 2007 results included $849,000 of net foreign currency losses.
 
    Third quarter 2008 results include $1.1 million of tax benefit related to federal and state research and development credits recorded during the quarter.
 
    Third quarter 2007 results include expenses of $2.5 million for professional fees associated with our stock option review.
 
    Completed the acquisition of MINX Limited on July 10, 2008.
“In the third quarter, the demand environment for IT solutions continued to be very challenging as the overall economy worsened, especially in September,” said Rich Fennessy, President and Chief Executive Officer. “In this environment, as we finish out 2008 and head into 2009, we are focused on optimizing our new sales coverage model and taking actions to reduce our base infrastructure costs and discretionary spending.”
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Insight Q3 2008 Results, Page 2   November 6, 2008
SEGMENT OVERVIEW
Net sales in North America increased 5% to $854.7 million in the third quarter. The hardware net sales of Calence more than offset the decline in net sales in the Company’s legacy hardware business. The software and services categories are performing well, reporting growth of 2% and 126%, respectively, in the third quarter. Consistent with the first half of the year, pricing continued to sustain pressure in the third quarter. As a result, gross profit dollars in North America declined by 2% while gross margin decreased approximately 80 basis points. Selling and administrative expenses were 11.5% of net sales, a level that was consistent with the third quarter of last year because incremental selling and administrative expenses resulting from the Company’s growth through acquisitions were offset by expense management initiatives and reduced performance-based compensation expense. Additionally, during 2008, there were no professional fees associated with the prior year stock option review. As a result, earnings from operations in North America were down 43% in the quarter.
In this environment, we must continue to be aggressive in ensuring we decrease our base cost infrastructure and discretionary spending levels going into next year. As a result of actions we took earlier in the year, expected efficiencies from our systems upgrade project, and additional actions planned for the 4th quarter, we are targeting a year over year decrease in the net operating expenses of our legacy North America business in 2009 of approximately $20 million, or about 6%.
EMEA continued to execute well during the third quarter, which resulted in strong financial results for this segment. Net sales increased 6% to $281.4 million. In local currency, net sales across hardware, software and services grew in the quarter. Gross profit dollars grew 17% and for the third consecutive quarter, gross margin increased over 100 basis points year over year. As a result, earnings from operations more than doubled versus last year.
On July 10, 2008, we acquired MINX Limited, a United Kingdom-based networking services company with annual net sales of approximately $25.0 million. This acquisition, along with the Calence acquisition in North America in the second quarter, is consistent with our vision and strategy to become a global value added reseller (“G-VAR”) through continued investment in certain key technology categories, including networking and advanced communications.
In APAC, while net sales increased 20% to $32.8 million in the quarter, earnings from operations decreased year over year due to a decrease in fee based enterprise agreement sales and increased selling and administrative expenses the Company added to support long term growth in the region.
GUIDANCE
We expect the demand environment to continue to be soft in the fourth quarter. As a result, we expect fourth quarter 2008 diluted earnings per share to be between $0.27 and $0.34. This estimate includes no severance, restructuring or other one-time charges. The reason for such a wide range is that, worldwide, the current environment is quite unprecedented making forecasting more difficult. As such, this guidance reflects management’s expectations for the balance of 2008, but the factors that could affect performance are numerous.
CONFERENCE CALL AND WEBCAST
The Company will host a conference call and live webcast today at 5:00 p.m. ET to discuss third quarter 2008 results of operations. To access the teleconference, please dial 866-362-4831 (US & Canada) or 617-597-5347 (International) and enter the participant code 38460820. The live webcast (in listen-only mode) and subsequent replays of the conference call will be available online on the investor relations section of our website, insight.com, at http://www.insight.com/site/static/investor_relations.cfm for a limited period of time.
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Insight Q3 2008 Results, Page 3   November 6, 2008
Financial Summary Table
(in thousands, except per share data and percentages)
                                                 
    Three Months Ended     Nine Months Ended  
    September 30,     September 30,  
Insight Enterprises, Inc.   2008     2007     % change     2008     2007     % change  
Net sales
  $ 1,168,916     $ 1,109,705       5 %   $ 3,674,427     $ 3,517,129       4 %
Gross profit
  $ 154,072     $ 149,846       3 %   $ 508,969     $ 487,834       4 %
Earnings (loss) from operations — GAAP
  $ 14,874     $ 19,026       (22 %)   $ (234,449 )   $ 86,091       (372 %)
Earnings from operations — non-GAAP*
  $ 14,874     $ 19,026       (22 %)   $ 79,500     $ 86,091       (8 %)
Net earnings (loss) from continuing operations — GAAP
  $ 6,713     $ 9,096       (26 %)   $ (157,044 )   $ 48,201       (426 %)
Net earnings from continuing operations — non-GAAP*
  $ 6,713     $ 9,096       (26 %)   $ 44,123     $ 48,201       (8 %)
Diluted EPS from continuing operations — GAAP
  $ 0.15     $ 0.18       (17 %)   $ (3.35 )   $ 0.97       (445 %)
Diluted EPS from continuing operations — non-GAAP*
  $ 0.15     $ 0.18       (17 %)   $ 0.94     $ 0.97       (3 %)
 
                                               
North America
                                               
Net sales
  $ 854,729     $ 817,747       5 %   $ 2,578,098     $ 2,518,847       2 %
Gross profit
  $ 107,199     $ 109,018       (2 %)   $ 347,156     $ 355,123       (2 %)
Earnings (loss) from operations — GAAP
  $ 8,772     $ 15,276       (43 %)   $ (265,061 )   $ 62,677       (523 %)
Earnings from operations — non-GAAP*
  $ 8,772     $ 15,276       (43 %)   $ 48,888     $ 62,677       (22 %)
 
                                               
EMEA
                                               
Net sales
  $ 281,366     $ 264,679       6 %   $ 981,859     $ 923,958       6 %
Gross profit
  $ 41,895     $ 35,714       17 %   $ 143,596     $ 119,225       20 %
Earnings from operations
  $ 5,454     $ 2,549       114 %   $ 26,474     $ 20,579       29 %
 
                                               
APAC
                                               
Net sales
  $ 32,821     $ 27,279       20 %   $ 114,470     $ 74,324       54 %
Gross profit
  $ 4,978     $ 5,114       (3 %)   $ 18,217     $ 13,486       35 %
Earnings from operations
  $ 648     $ 1,201       (46 %)   $ 4,138     $ 2,835       46 %
     
*   A tabular reconciliation of financial measures prepared in accordance with GAAP to non-GAAP financial measures is included at the end of this press release.
USE OF NON-GAAP FINANCIAL MEASURES
The non-GAAP financial measures in 2008 exclude the goodwill impairment charge recorded in the second quarter and the tax effect of that item. We exclude goodwill impairment charges when internally evaluating earnings from operations, tax expense, net earnings and diluted earnings per share for the Company and earnings from operations for the individual operating segments. These non-GAAP measures are used to evaluate financial performance against budgeted amounts, to calculate incentive compensation, to assist in forecasting future performance and to compare our results to competitors’ financial results. We believe that these non-GAAP financial measures are useful to investors because they allow for greater transparency, facilitate comparisons to prior periods and competitors’ results and assist in forecasting performance for future periods because they exclude items we believe to be outside of normal operating results. These non-GAAP financial measures are not prepared in accordance with GAAP and may be different from non-GAAP financial measures presented by other companies. Non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP.
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Insight Q3 2008 Results, Page 4   November 6, 2008
FORWARD-LOOKING INFORMATION
Certain statements in this release and the related conference call and webcast are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements, including our projected diluted earnings per share for 2008 and the expected cost savings from restructuring activities, 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 for the year ended December 31, 2007:
    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 systems and voice and data networks, including the system upgrade and the migration of acquired businesses to our information technology systems and voice and data networks;
 
    the integration and operation of acquired businesses, including our ability to achieve expected benefits of the acquisitions;
 
    actions of our competitors, including manufacturers and publishers of products we sell;
 
    the risks associated with international operations;
 
    seasonal changes in demand for sales of software licenses;
 
    increased debt and interest expense and lower availability on our financing facilities and changes in the overall capital markets that could increase our borrowing costs or reduce future availability of financing;
 
    exposure to currency exchange risks and volatility in the U.S. dollar exchange rate;
 
    our dependence on key personnel;
 
    risk that purchased goodwill or intangible assets become impaired;
 
    failure to comply with the terms and conditions of our public sector contracts;
 
    rapid changes in product standards; and
 
    intellectual property infringement claims and challenges to our registered trademarks and trade names.
Additionally, there may be other risks that are otherwise described from time to time in the reports that we file with the Securities and Exchange Commission. 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 made by third parties.
         
Contacts:
  Glynis Bryan   Helen Johnson
 
  Chief Financial Officer   Senior VP, Treasurer
 
  Tel. 480-333-3390   Tel. 480-333-3234
 
  Email glynis.bryan@insight.com   Email helen.johnson@insight.com
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Insight Q3 2008 Results, Page 5   November 6, 2008
INSIGHT ENTERPRISES, INC. AND SUBSIDIARIES
Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)
                                 
    Three Months Ended     Nine Months Ended  
    September 30,     September 30,  
    2008     2007     2008     2007  
Net sales
  $ 1,168,916     $ 1,109,705     $ 3,674,427     $ 3,517,129  
Costs of goods sold
    1,014,844       959,859       3,165,458       3,029,295  
 
                       
Gross profit
    154,072       149,846       508,969       487,834  
Selling and administrative expenses
    139,198       130,820       424,061       398,902  
Goodwill impairment
                313,949        
Severance and restructuring expenses
                5,408       2,841  
 
                       
Earnings (loss) from operations
    14,874       19,026       (234,449 )     86,091  
Non-operating (income) expense:
                               
Interest income
    (440 )     (432 )     (1,741 )     (1,486 )
Interest expense
    3,085       2,860       9,749       10,146  
Net foreign currency exchange loss (gain)
    3,307       849       3,425       (2,807 )
Other expense, net
    297       428       787       1,141  
 
                       
Earnings (loss) from continuing operations before income taxes
    8,625       15,321       (246,669 )     79,097  
Income tax expense (benefit)
    1,912       6,225       (89,625 )     30,896  
 
                       
Net earnings (loss) from continuing operations
    6,713       9,096       (157,044 )     48,201  
Net earnings from a discontinued operation
                      4,972  
 
                       
Net earnings (loss)
  $ 6,713     $ 9,096     $ (157,044 )   $ 53,173  
 
                       
 
                               
Net earnings (loss) per share — Basic:
                               
Net earnings (loss) from continuing operations
  $ 0.15     $ 0.18     $ (3.35 )   $ 0.98  
Net earnings from a discontinued operation
                      0.10  
 
                       
Net earnings (loss) per share
  $ 0.15     $ 0.18     $ (3.35 )   $ 1.08  
 
                       
 
                               
Net earnings (loss) per share — Diluted:
                               
Net earnings (loss) from continuing operations
  $ 0.15     $ 0.18     $ (3.35 )   $ 0.97  
Net earnings from a discontinued operation
                      0.10  
 
                       
Net earnings (loss) per share
  $ 0.15     $ 0.18     $ (3.35 )   $ 1.07  
 
                       
 
                               
Shares used in per share calculations:
                               
Basic
    45,569       49,530       46,901       49,213  
 
                       
Diluted
    45,719       50,711       46,901       49,801  
 
                       
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Insight Q3 2008 Results, Page 6   November 6, 2008
INSIGHT ENTERPRISES, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(In thousands)
(Unaudited)
                 
    September 30,     December 31,  
    2008     2007  
ASSETS
               
Current assets:
               
Cash and cash equivalents
  $ 72,451     $ 56,718  
Accounts receivable, net
    892,910       1,072,612  
Inventories
    89,374       98,863  
Inventories not available for sale
    18,411       21,450  
Deferred income taxes
    23,344       22,020  
Other current assets
    28,166       38,916  
 
           
Total current assets
    1,124,656       1,310,579  
 
               
Property and equipment, net
    165,883       158,467  
Goodwill
    86,760       306,742  
Intangible assets, net
    100,123       80,922  
Deferred income taxes
    109,825       392  
Other assets
    18,346       10,076  
 
           
 
  $ 1,605,593     $ 1,867,178  
 
           
 
               
LIABILITIES AND STOCKHOLDERS’ EQUITY
               
Current liabilities:
               
Accounts payable
  $ 517,185     $ 685,578  
Accrued expenses and other current liabilities
    113,393       113,891  
Current portion of long-term debt
    168,374       15,000  
Deferred revenue
    25,652       42,885  
 
           
Total current liabilities
    824,604       857,354  
 
               
Long-term debt
    162,653       187,250  
Deferred income taxes
    29,807       27,305  
Other liabilities
    24,988       20,075  
 
           
 
    1,042,052       1,091,984  
 
           
 
               
Stockholders’ equity:
               
Preferred stock
           
Common stock
    456       485  
Additional paid-in capital
    368,394       386,139  
Retained earnings
    161,501       340,641  
Accumulated other comprehensive income — foreign currency translation adjustments
    33,190       47,929  
 
           
Total stockholders’ equity
    563,541       775,194  
 
           
 
  $ 1,605,593     $ 1,867,178  
 
           
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Insight Q3 2008 Results, Page 7   November 6, 2008
INSIGHT ENTERPRISES, INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
                 
    Nine Months Ended September 30,  
    2008     2007  
Cash flows from operating activities:
               
Net (loss) earnings from continuing operations
  $ (157,044 )   $ 48,201  
Plus: net earnings from a discontinued operation
          4,972  
 
           
Net (loss) earnings
    (157,044 )     53,173  
Adjustments to reconcile net (loss) earnings to net cash provided by operating activities:
               
Goodwill impairment
    313,949        
Depreciation and amortization
    30,287       25,960  
Provision for losses on accounts receivable
    2,185       1,725  
Write-downs of inventories
    5,829       5,744  
Non-cash stock-based compensation
    7,556       8,927  
Gain on sale of a discontinued operation
          (7,937 )
Excess tax benefit from employee gains on stock-based compensation
    (108 )     (445 )
Deferred income taxes
    (108,593 )     2,355  
Changes in assets and liabilities:
               
Decrease in accounts receivable
    201,010       186,033  
Decrease (increase) in inventories
    6,294       (2,509 )
Decrease in other current assets
    18,300       12,704  
Decrease (increase) in other assets
    2,877       (1,944 )
Decrease in accounts payable
    (253,561 )     (142,794 )
Decrease in deferred revenue
    (18,845 )     (15,175 )
Increase (decrease) in accrued expenses and other liabilities
    11,985       (26,788 )
 
           
Net cash provided by operating activities
    62,121       99,029  
 
           
Cash flows from investing activities:
               
Acquisition of Calence, net of cash acquired
    (124,671 )      
Acquisition of MINX, net of cash acquired
    (957 )      
Proceeds from sale of a discontinued operation, net of direct expenses
    (900 )     28,631  
Purchases of property and equipment
    (23,994 )     (27,611 )
 
           
Net cash (used in) provided by investing activities
    (150,522 )     1,020  
 
           
Cash flows from financing activities:
               
Borrowings on senior revolving credit facility
    712,089        
Repayments on senior revolving credit facility
    (549,176 )      
Borrowings on accounts receivable securitization financing facility
    466,874       540,000  
Repayments on accounts receivable securitization financing facility
    (444,500 )     (601,000 )
Repayments on term loan
    (56,250 )     (11,250 )
Net borrowings under inventory financing facility
    18,213        
Net repayments on short-term line of credit
          (15,000 )
Repayments on assumed debt
    (10,978 )      
Deferred financing fees
    (3,355 )      
Proceeds from sales of common stock under employee stock plans
    5,031       24,342  
Excess tax benefit from employee gains on stock-based compensation
    108       445  
Payment of payroll taxes on stock-based compensation through shares withheld
    (2,097 )      
Repurchases of common stock
    (50,000 )     (22,336 )
Increase (decrease) in book overdrafts
    21,633       (23,856 )
 
           
Net cash provided by (used in) financing activities
    107,592       (108,655 )
 
           
Foreign currency exchange effect on cash flows
    (3,458 )     6,995  
 
           
Increase (decrease) in cash and cash equivalents
    15,733       (1,611 )
Cash and cash equivalents at beginning of period
    56,718       54,697  
 
           
Cash and cash equivalents at end of period
  $ 72,451     $ 53,086  
 
           
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Insight Enterprises, Inc.   1305 West Auto Drive   Tempe, Arizona 85284   480-902-1001   FAX 480-760-8958

 

 


 

     
Insight Q3 2008 Results, Page 8   November 6, 2008
INSIGHT ENTERPRISES, INC. AND SUBSIDIARIES
Quarterly Select Operating Segment Statistics
(Unaudited)
                         
    Three Months Ended        
    September 30,        
North America   2008     2007     Change  
Number of shipping days
    64       63     1 day
Number of account executives at period end
    1,439       1,362       6 %
Net sales per account executive(a)
  $ 590,690     $ 606,188       (3 %)
Gross profit per account executive(b)
  $ 74,083     $ 80,814       (8 %)
Sales mix (as a % of net sales):(c)
                       
Networking and connectivity
    18 %     12 %     63 % (d)
Notebooks and PDAs
    9 %     12 %     (15 %)(d)
Servers and storage
    9 %     11 %     (17 %)(d)
Desktops
    7 %     6 %     17 % (d)
Printers
    4 %     6 %     (29 %)(d)
Memory and processors
    2 %     4 %     (41 %)(d)
Supplies and accessories
    4 %     4 %     (15 %)(d)
Monitors and video
    5 %     5 %     (3 %)(d)
Miscellaneous
    9 %     9 %     (1 %)(d)
 
                   
Hardware
    67 %     69 %     1 % (d)
Software
    27 %     28 %     2 % (d)
Services
    6 %     3 %     126 %(d)
 
                   
 
    100 %     100 %        
 
                   
 
                       
EMEA
                       
Number of shipping days(e)
    65       64     1 day
Number of account executives at period end
    665       563 (f)     18 %
Net sales per account executive(a)
  $ 429,239     $ 478,192       (10 %)
Gross profit per account executive(b)
  $ 63,914     $ 64,525       (1 %)
Sales mix (as a % of net sales):(c)
                       
Networking and connectivity
    6 %     5 %     39 % (d)
Notebooks and PDA’s
    9 %     11 %     (11 %)(d)
Servers and storage
    7 %     7 %     (1 %)(d)
Desktops
    6 %     5 %     11 % (d)
Printers
    3 %     4 %     (16 %)(d)
Memory and processors
    1 %     2 %     (35 %)(d)
Supplies and accessories
    4 %     4 %     2 % (d)
Monitors and video
    5 %     5 %     1 % (d)
Miscellaneous
    3 %     4 %     (18 %)(d)
 
                   
Hardware
    44 %     47 %     (1 %)(d)
Software
    55 %     52 %     13 % (d)
Services
    1 %     1 %     57 % (d)
 
                   
 
    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)   Beginning in 2008, we have combined servers with storage in reporting our sales mix and are reporting desktops separately to conform with how we internally analyze our results. All prior period information has been reclassified for comparative purposes.
 
(d)   Represents growth/decline in category net sales on a dollar basis.
 
(e)   Represents shipping days for the United Kingdom as it makes up the largest percentage of net sales in our EMEA segment.
 
(f)   Number of account executives for the three months ended September 30, 2007 has been changed to conform to the current period presentation. This presentation also conforms to the definition of an account executive in our North America operating segment.
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Insight Enterprises, Inc.   1305 West Auto Drive   Tempe, Arizona 85284   480-902-1001   FAX 480-760-8958

 

 


 

     
Insight Q3 2008 Results, Page 9   November 6, 2008
INSIGHT ENTERPRISES, INC. AND SUBSIDIARIES
Reconciliation of GAAP to Non-GAAP Financial Measures
(In thousands, except per share data)
(unaudited)
         
    Nine Months Ended  
    September 30, 2008  
Consolidated (Loss) Earnings from Operations:
       
GAAP
  $ (234,449 )
Goodwill impairment
    313,949  
 
     
Non-GAAP
  $ 79,500  
 
     
 
       
Consolidated Net (Loss) Earnings from Continuing Operations:
       
GAAP
  $ (157,044 )
Goodwill impairment, net of tax
    201,167  
 
     
Non-GAAP
  $ 44,123  
 
     
 
       
Consolidated Diluted EPS from Continuing Operations:
       
GAAP
  $ (3.35 )
Goodwill impairment, net of tax
    4.29  
 
     
Non-GAAP
  $ 0.94  
 
     
 
       
Shares used in per share calculation:
       
GAAP
    46,901  
Dilutive potential common shares due to dilutive options and restricted stock, net of tax effect
    187  
 
     
Non-GAAP
    47,088  
 
     
 
       
North America (Loss) Earnings from Operations:
       
GAAP
  $ (265,061 )
Goodwill impairment
    313,949  
 
     
Non-GAAP
  $ 48,888  
 
     
- ### -
                 
Insight Enterprises, Inc.   1305 West Auto Drive   Tempe, Arizona 85284   480-902-1001   FAX 480-760-8958

 

 

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-----END PRIVACY-ENHANCED MESSAGE-----