The following is a summary of the PC Connection, Inc. (CNXN) Q1 2024 Earnings Call Transcript:

Financial Performance:

• PC Connection reported Q1 2024 consolidated net sales of $632 million, down by 13.1% compared to Q1 2023.

• The company's gross profit saw a decrease of 3.5%, amounting to $118.1 million but gross margins increased by 187 basis points to 18.7%.

• Operating income in Q1 2024 was $13.5 million, marking a 25.7% drop compared to the previous year.

• PC Connection's net income amounted to $13.2 million, a reduction of 7.4% from Q1 2023.

• The company reported diluted earnings per share of $0.50 for Q1 2024, down by 7.7% from $0.54 in Q1 2023.

• The company concluded Q1 with $352 million in cash, cash equivalents, and short-term investments.

Business Progress:

• Despite lower device sales, PC Connection managed to add new commercial accounts and witnessed high-single digit growth in its backlog.

• The company anticipates a stronger second half of the year with dynamic product mix.

• Gross profit from software and cloud saw an 18% increase contributing to the quarter's gross margin expansion.

• Positive events of the quarter include investing in both organic and inorganic growth opportunities, authorization for an additional $40 million increase to the existing share repurchase program, and declaration of a quarterly dividend of $0.10 per share.

• PC Connection plans to focus on the AI ecosystem to bolster their server category, device endpoint, and storage category by the end of the year.

• The company's AI-driven products like Microsoft's Copilot are contributing to a stable revenue stream.

• PC Connection also expects a boost in the adoption of next-gen PCs, aging PC bases and Windows 11 which will benefit the adoption rate of Microsoft Copilot.

More details: PC Connection IR

Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.