Public-sector sales boost CDW
- By John Moore
- Apr 26, 2006
Public-sector sales helped propel CDW’s March quarter revenue growth.
The company reported revenue of $1.59 billion, a 7.7 percent increase from $1.48 billion in sales a year ago. Sales for the company’s public-sector unit, CDW-Government, grew 13.4 percent in the first quarter to $438.4 million, from $386.8 million last year. Corporate-sector revenue grew 5.7 percent.
Net income for the quarter was $61.7 million, a 0.5 percent increase compared with last year’s March quarter earnings of $61.4 million. Diluted earnings per share rose 4.2 percent to $0.75 from $0.72 last year.
James Shanks, executive vice president at CDW, said CDW-G’s state and local government and health care sectors were particularly strong during the quarter. CDW plans to increase its focus on providing services to customers.
John Edwardson, CDW’s chairman and chief executive officer, said the company will pursue an overall strategy for providing configuration, break-fix and warranty services. Other services to be provided through the company’s “services-around-the-box” strategy include hardware and software installation and migration.