Insight EMEA earnings slip despite record results in second quarter

Services sales fall in EMEA but reseller posts strong overall results

Insight's EMEA arm posted a net sales increase of two per cent for its second quarter despite a decline in its services sales.

EMEA net sales were $426.3m for the quarter, which Insight said represented a 14 per cent increase when excluding the effects of fluctuating currency rates.

Product sales for the region were up four per cent to $368.4m but services sales in EMEA fell by seven per cent to $58m.

Earnings from operations in EMEA decreased seven per cent to $18m, but Insight claims that its EMEA operations earnings actually increased by four per cent when excluding fluctuating currency exchange rates.

Despite this, the reseller posted record second quarter results for the entire business thanks to strong gains in its other regions.

Net sales increased 23 per cent year-over-year to a record $2.74bn, while earnings from operations also set a new second quarter record at $129.5m - up 46 per cent.

Product net sales increased 24 per cent compared with the same quarter in the prior year, while services net sales surged by 16 per cent.

And diluted earnings per share for the quarter was $2.42, up 53 per cent.

"I am thrilled to report that performance in the second quarter was outstanding," said president and CEO Joyce Mullen.

"Insight achieved record results in net sales, gross profit, adjusted earnings from operations and adjusted diluted earnings per share.

"I'm particularly pleased with the results in our services business which grew 16 per cent over last year, driven by growth in our cloud and Insight core services.

"We also continued to drive significant operating efficiencies, as demonstrated by the improvement in our EBITDA margin."

For the full year, the reseller said it expects to deliver low double digit net sales growth, while adjusted diluted earnings per share is expected to be between $8.55 and $8.75.