TORONTO, ONTARIO — (Marketwire) — 08/09/11 — Softchoice Corporation (TSX: SO), a leading North American provider of technology solutions and services, today reported its financial results for the second quarter of 2011.
For the three-month period ended June 30, 2011, Softchoice reported net income of US$10.9 million compared to net income of US$6.2 million for the same period the year prior. Adjusting for the impact of foreign exchange gains and losses, net earnings in the quarter amounted to US$10.6 million, or US$0.54 per share (basic and fully diluted), compared to net earnings of US$8.3 million, or US$0.42 per share (basic and fully diluted) for the second quarter of 2010. Adjusted net earnings per share grew 28.6 percent year-over-year.
The Company reported revenue of US$252.9 million compared to US$233.3 million for the second quarter of 2010, representing an increase of 8.4 percent. Microsoft sales were up 9.8 percent in the quarter, while sales of hardware infrastructure solutions grew by 18 percent.
“Consistent with our long-term strategy to increase the value of our solutions portfolio, the addition of pre-sales and professional services resources coupled with solid demand across the major segments of our business have translated into strong earnings growth and steady improvements in our margin performance,” said David MacDonald, President and CEO of Softchoice. “As we look to the balance of year, we are well positioned to benefit from the ongoing technology refresh cycle and from new incentives Microsoft has created for partners who provide value-added support around the deployment of leading Microsoft solutions.”
Gross profit was US$55.5 million in the quarter, representing an increase of 18.3 percent compared to gross profit of US$46.9 million reported for the second quarter of 2010. Earnings before interest, taxes, depreciation and amortization (EBITDA) increased 23.6 percent to US$19.8 million delivering a 96 basis point year-over-year increase in EBITDA margin to 7.8 percent.
“The strong growth in EBITDA in the quarter reflects the success of our strategy to shift a greater proportion of our gross profit mix to higher margin engagements such as server and storage virtualization and private cloud solutions,” added Mr. MacDonald. “While still in the early stages, we are very pleased with these results and with the impact our pre-sales and services investments have had on driving substantial improvements in the productivity of our sales organization.”
At the close of the second quarter, the Company had US$42.5 million in cash on hand.
Softchoice-s interim consolidated financial statements and MD&A are available at .
Additional Quarterly Highlights
Second Quarter Earnings Call Participant Details
Softchoice will host its second quarter earnings call on August 10, 2011 at 8 a.m. EDT.
The call will be moderated by David MacDonald, Softchoice-s President and CEO, and Chief Financial Officer, David Long. The conference call will begin with a brief web presentation followed by a question-and-answer session.
Softchoice will release its second quarter earnings results the evening of August 9, 2011.
Second Quarter Earnings Details
Participant Dial in Number: 1 866 212 4491
Webcast URL:
To ensure participation, please dial in at least 10 minutes prior to the start of the conference call at 8:00 a.m. EDT.
For those unable to attend the call, a link will be made available on to an archived web and audio version on August 11, 2011.
About Softchoice
As a leading North American provider of technology solutions and services, Softchoice combines the efficiency and reliability of a national IT supplier with the personal touch and technical expertise of a local solutions provider. Softchoice-s holistic approach to technology includes solution design, implementation and asset management services, as well as access to one of the most comprehensive and cost-effective technology distribution networks in North America. With over 950 employees located in more than 40 branch offices, Softchoice manages the technology needs of almost 15,000 corporate and public sector organizations across the United States and Canada.
Softchoice stock is listed on the Toronto Stock Exchange (TSX) under the trading symbol “SO.” The common shares of Softchoice are not registered under the U.S. Securities Act of 1933 and are not publicly traded in the United States.
Forward-Looking Statements
This press release contains forward-looking statements that involve risks and uncertainties. These forward-looking statements relate to expectations, intentions and plans contained in this press release that are not historical fact. When used in this press release, the words “anticipate”, “expect”, “will” and similar expressions generally identify forward-looking statements. These statements reflect our current expectations and are subject to a number of risks and uncertainties including, but not limited to, change in technology and general market conditions, many of which are set out or incorporated by reference in the Company-s latest Annual Information Form. Due to the many risks and uncertainties, Softchoice cannot assure that the forward-looking statements contained in this press release will be realized.
TORONTO, ONTARIO–(Marketwire – Aug. 9, 2011) –
Interim Consolidated Financial Statements
(Expressed in U.S. dollars)
SOFTCHOICE CORPORATION
Three-month and six-month periods ended
June 30, 2011 and 2010
(Unaudited)
The accompanying notes are an integral part of these unaudited interim consolidated financial statements.
Contacts:
Media Contact
Eric Gardiner
Manager of Communications
416.588.9002 Ext. 2358
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