CDW sales in 2Q increase 10.6 percent

LINCOLNSHIRE - CDW Corp. reported second quarter 2016 sales were up 10.6 percent, bolstered by recent acquisitions in the United Kingdom and favorable currency exchanges in Canada.

Total net sales in the second quarter of 2016 were $3,665 million, compared to $3,314 million in the second quarter of 2015. There were 64 selling days for the three months ended June 30, 2016 and 2015. Organic net sales growth, which excludes the results of CDW UK, versus second quarter 2015, was 4.3 percent.

"Strong operating results were amplified by our 2015 acquisition of UK solutions provider, CDW UK and share repurchases, with non-GAAP net income per share increasing 16 percent," said Ann E. Ziegler, CDW's chief financial officer. "We expect to continue to amplify operating earnings growth and meet our medium-term annual target of low double-digit non-GAAP net income per share growth in 2016."

Gross profit for the second quarter of 2016 was $611 million, compared to $535 million in the second quarter of 2015, representing an increase of 14.2 percent. Gross profit margin was 16.7 percent for the second quarter of 2016 versus 16.1 percent for the same period in 2015. The increase primarily reflected a higher mix of 100 percent gross margin revenues, such as warranties and software as a service, that are booked net of cost of goods sold, higher vendor partner funding and inclusion of CDW UK sales, which have a higher mix of services.

"Second quarter results reinforce the strength of our strategy and power of our business model," said Thomas E. Richards, CDW chairman and chief executive officer. "We delivered solid top line growth with excellent profitability in a challenging market, once again highlighting the value of our balanced channels and broad product portfolio. We continue to benefit from our investment in delivering fast growing integrated solutions, including security, cloud and flash storage, which are leading growth across the company.

"We are well-positioned to achieve our target of outpacing US IT market growth by 200 to 300 basis points on an organic, constant currency basis in 2016. To accomplish this, we will continue our laser-focus on meeting the needs of our more than 250,000 customers in the United States, Canada and the United Kingdom and remaining the partner of choice for more than 1,000 leading and emerging technology brands as the technology market continues to evolve," concluded Richards.

A quarterly cash dividend of 10.75 cents per share will be paid on Sept. 12 to all stockholders of record as of the close of business on Aug. 25.