SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): August 18, 2004
PC Connection, Inc.
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(Exact name of registrant as specified in charter)
Delaware 0-23827 02-0513618
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(State or other jurisdiction (Commission (IRS Employer
incorporation File Number) Identification No.)
Rt. 101A, 730 Milford Road
Merrimack, NH 03054
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (603) 683-2000
N/A
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(Former name or former address, if changed since last report)
Item 9. Regulation FD Disclosure.
On August 18, 2004, PC Connection, Inc. announced that its GovConnection
subsidiary has been awarded authorization to sell to U.S. federal government
agencies under the General Services Administration (GSA) schedule. The full text
of the press release issued in connection with the announcement is attached as
Exhibit 99.1 to this Current Report on Form 8-K.
GovConnection's authority to sell under the GSA schedule was cancelled in
November 2003 following a government review of the subsidiary's contract
management systems and procedures. The audit concluded that in prior years,
there was a possibility of the sale of unqualified items or the underpayment of
required fees under the prior GSA schedule, which is still under review by the
government. GovConnection, formerly known as ComTeq Federal, was acquired by PC
Connection in 1999.
We have been informally advised that audit matters related to GovConnection
have been referred to the Department of Justice for its review. Such a referral
exposes us to possible civil damages for non-compliance with the GSA contract.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Date: August 19, 2004 PC CONNECTION, INC.
By: /s/ Mark A. Gavin
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Mark A. Gavin
Senior Vice President of Finance and
Chief Financial Officer
EXHIBIT INDEX
Exhibit No. Description
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99.1 Press release dated August 18, 2004.
EXHIBIT 99.1
PC Connection Subsidiary Wins GSA Schedule Approval;
Key Contract Expands Ability of GovConnection, Inc., to Serve
Federal Agencies
MERRIMACK, N.H.--(BUSINESS WIRE)--Aug. 18, 2004--PC Connection,
Inc. (NASDAQ: PCCC), a leading direct marketer of information
technology (IT) products and solutions, has announced that its
GovConnection subsidiary has been awarded authorization to sell to
U.S. federal government agencies under the General Services
Administration (GSA) schedule. The GSA schedule, a key federal
government procurement vehicle, enables GovConnection to more
efficiently market products and services to a wide variety of U.S.
government agencies.
"With our new GSA schedule and recently improved systems, our
Account Managers and support staff at GovConnection are now better
equipped than ever to meet the specialized IT needs of federal
government customers," said Jay Lambke, President of GovConnection,
Inc. "The timing of this award, which comes during the most active
time of the year for federal government technology procurement, means
our customers have another easy way to buy our products, which include
some of the industry's leading server and enterprise storage
offerings."
Patricia Gallup, Chairman and CEO of PC Connection, Inc., added,
"We strongly believe that GovConnection is better prepared than ever
to serve the complex and changing IT needs of our federal government
customers."
About PC Connection, Inc.
PC Connection, Inc., a Fortune 1000 company, operates three sales
subsidiaries, PC Connection Sales Corporation of Merrimack, NH,
GovConnection, Inc. of Rockville, MD, and MoreDirect, Inc. of Boca
Raton, FL. PC Connection Sales Corporation (1-800-800-5555) is a
rapid-response provider of information technology (IT) products and
solutions offering more than 100,000 brand-name products to businesses
through its staff of technically trained sales account managers and
catalog telesales representatives, catalogs and publications, and its
web site at www.pcconnection.com. The subsidiary serves the
Apple/Macintosh community through its MacConnection division
(1-800-800-2222), which also publishes specialized catalogs and is
online at www.macconnection.com. GovConnection, Inc. (1-800-800-0019)
is a rapid-response provider of IT products and solutions to federal,
state, and local government agencies and educational institutions
through specialized account managers, catalogs and publications, and
online at www.govconnection.com. MoreDirect, Inc. (www.moredirect.com)
provides corporate technology buyers with a comprehensive web-based
e-procurement solution and in-depth IT supply-chain expertise, serving
as a one-stop source by aggregating more than 300,000 products from
the inventories of leading IT wholesale distributors and
manufacturers. All three subsidiaries can deliver custom-configured
computer systems overnight.
CONTACT: PC Connection, Inc.
David Beffa-Negrini, 603-683-2167