Misses expectations as some big deals miss the quarter, but sees growth in communications and services Distributor ScanSource reported a Q3 2015 revenue of $763m, below the expected range principally due to foreign exchange impacts and strengthening of the dollar.
Overall net sales increased 12% year-over-year, worldwide barcode and security sales declined 7% from lower big deals for the POS and barcode business units. Worldwide communications and services sales increased 50% year-over-year with growth in each business unit and the completed acquisitions of Imago and Network1.
Mike Baur (above)- CEO: “It’s not an impact on demand in Europe. I think we saw a weaker March quarter there than we had originally planned and I think in this case, we had some specific large deals that did not happen in the March quarter that we had forecasted and we do believe most of those deals will happen and they are in our June forecast.”
As a major Polycom distributor, it is looking at some large price rises in the eurozone: “What's happened so far is the vendors have notified the channel that the increases were coming and some of them were affected in the beginning of April and some during the month of April. And so far as of today, we have not seen a negative impact on our business and what we expected to do for this quarter. “We buy locally in most cases. Remember that you have the Pound Sterling there, as well as the euros so there are some differences.“
Worldwide barcode and security sales of $422 million decreased 7% year-over-year or down 2% excluding foreign exchange. It had fewer big deals this quarter across all geographies as some projects were delayed, he says.
Worldwide communications and services, the other part of the business did well: with the completion of two international communications acquisitions, Imago in September and Network1 in January this segment is 45% of overall sales this quarter. Worldwide communications and services net sales of $341m increased 50% from a year ago or 17% increase excluding the acquisitions in foreign exchange. This reflects year-over-year sales growth for all business units in this segment, it says.