Distributor ScanSource's Q3 2016 which ended March 31, 2016 showed fewer big deals. Net sales for the quarter ended March 31, 2016 increased 5% year-over-year to $798.4m with this increase in net sales including the acquisition of KBZ in September 2015. Net sales in constant currency excluding acquisitions decreased 1% year-over-year.
“Although sales fell below our expected range primarily from a lower volume of big deals, we are pleased to deliver EPS growth of 20%,” said Mike Baur, CEO, ScanSource. “Our 10.6% gross margin reflects the value-added services we provide to our customers and vendors.”
The distributor focuses on point-of-sale (POS), barcode, physical security, video, voice, data networking and emerging technologies with two segments, Worldwide Barcode & Security and Worldwide Communications & Services. Operating income for the quarter ended March 31, 2016 totalled $21.6 million. Non-GAAP operating income of $25.3 million increased 5% year-over-year from $24.2 million.