Insight Enterprises, Inc. (NSIT)

[analogdog]

Look to be up on sales... restructuring tax and debt, may turn around.. chart near bottom IMO. Check 10-Q:

http://biz.yahoo.com/e/071109/nsit10-q.html
"We are a leading provider of brand-name information technology ("IT") hardware, software and services to large enterprises, small-to medium-sized businesses ("SMB") and public sector institutions in 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.
Net sales for the three months ended September 30, 2007 increased 29% to $1.11 billion from $857.9 million for the three months ended September 30, 2006, due primarily to an increase in software sales attributable to the acquisition of Software Spectrum. Net earnings for the three months ended September 30, 2007 decreased 47% to $9.1 million from $17.2 million for the three months ended September 30, 2006, and diluted earnings per share decreased to $0.18 for the three months ended September 30, 2007 from $0.35 for the three months ended September 30, 2006. Net earnings and diluted earnings per share for the three months ended September 30, 2007 include expenses of $2.5 million, $1.5 million net of tax, for professional fees associated with our stock option review (for further discussion see Note 2 to our Consolidated Financial Statements in Part II, Item 8 of our Annual Report on Form 10-K/A for the year ended December 31, 2006). Net earnings and diluted earnings per share for the three months ended September 30, 2006 include severance and restructuring expenses of $729,000, $454,000 net of tax, associated with the elimination of Insight positions as part of our integration and expense reduction plans.
Net sales for the nine months ended September 30, 2007 increased 48% to $3.52 billion from $2.37 billion for the nine months ended September 30, 2006, due primarily to an increase in software sales attributable to the acquisition of Software Spectrum. Net earnings for the nine months ended September 30, 2007 decreased 8% to $53.2 million from $58.0 million for the nine months ended September 30, 2006 and diluted earnings per share decreased to $1.07 for the nine months ended September 30, 2007 from $1.20 for the nine months ended September 30, 2006. Net earnings and diluted earnings per share for the nine months ended September 30, 2007 include the following items:
• gain on sale of a discontinued operation of $7.9 million, $4.8 million net of tax;

• expenses of $12.5 million, $7.6 million net of tax, for professional fees associated with our stock option review; and

• $2.8 million, $1.7 million net of tax, for severance expense.

Net earnings and diluted earnings per share for the nine months ended September 30, 2006 include the gain on the sale of a discontinued operation of $15.1 million, $9.1 million net of tax, and severance and restructuring expenses of $729,000, $454,000 net of tax, associated with the elimination of Insight positions as part of our integration and expense reduction plans.
Overviews of each of our operating segments are discussed below and reconciliations of segment results of operations to consolidated results of operations can be found in Note 11 to our Consolidated Financial Statements provided in Item 1 of this report.
Our discussion and analysis of financial condition and results of operations is intended to assist in the understanding of our consolidated financial statements, the changes in certain key items in those consolidated financial statements from year to year and the primary factors that contributed to those changes, as well as how certain critical accounting estimates affect our consolidated financial statements.
Our North America net sales increased 18% from $694.3 million in the three months ended September 30, 2006 to $817.7 million in the three months ended September 30, 2007, due primarily to an increase in software sales attributable to the acquisition of Software Spectrum. We experienced a significant, but seasonal, decline in our software sales during the three months ended September 30, 2007 as compared to the three months ended June 30, 2007. Year-over-year software growth was 64%, due primarily to the acquisition of Software Spectrum, and we grew hardware sales by 5% and services sales by 42% over the prior year. Also included in our North America segment results was $2.5 million, $1.5 million net of tax, of professional fees associated with our stock option review. Overall, North America earnings from operations decreased 25% from $20.4 million for the three months ended September 30, 2006 to $15.3 million for the three months ended September 30, 2007.
Our EMEA operations recognized net sales that were up from $157.1 million in the three months ended September 30, 2006 to $264.7 million in the three months ended September 30, 2007, due primarily to the acquisition of Software Spectrum. EMEA was also affected by the significant, but seasonal, decline in software sales during the three months ended September 30, 2007 as compared to the three months ended June 30, 2007 but posted strong results across the hardware and services categories. Within EMEA, during the three months ended September 30, 2007, our software category grew 183%, due primarily to the acquisition of Software Spectrum, hardware sales grew 16%, and services grew 226% over the prior year. Overall EMEA earnings from operations decreased 31% from $3.7 million for the three months ended September 30, 2006 to $2.5 million for the three months ended September 30, 2007.
Our APAC segment continues to perform very well and contributed net sales of $27.3 million, gross profit of $5.1 million and earnings from operations of $1.2 million for the three months ended September 30, 2007. Although this operating segment, which was added as a result of the acquisition of Software Spectrum in September 2006, represents a small percentage of our consolidated results, we continue to be excited about the growth opportunities this region brings.
Software Spectrum's results of operations are included in our consolidated results of operations after the close of the acquisition on September 7, 2006. In the last 23 days of September 2006, Software Spectrum contributed $97.7 million in net sales and $2.4 million in earnings from operations to our consolidated results."