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UNITED STATES
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): January 19, 2006
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 Juris- (Commission (IRS Employer
diction of Incorporation File Number) Identification No.)
730 Milford Road 03054
Merrimack , New Hampshire
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(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code: 603-683-2000
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(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):
|_| Written communications pursuant to Rule 425 under the Securities Act
(17 CFR 230.425)
|_| Soliciting material pursuant to Rule 14a-12 under the Exchange Act
(17 CFR 240.14a-12)
|_| Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
|_| Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
Item 2.02 Results of Operations and Financial Condition
On January 19, 2006, the registrant issued a press release regarding its
financial results for the quarter ended December 31, 2005. A copy of the press
release is filed as Exhibit 99.1 hereto.
Item 9.01 Financial Statements and Exhibits
(c) Exhibits
99.1 Press Release issued by PC Connection, Inc. on
January 19, 2006.
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.
PC Connection, Inc.
Date: January 19, 2006 By: /s/ Jack Ferguson
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Jack Ferguson
Vice President, Treasurer and Chief
Financial Officer
EXHIBIT INDEX
Exhibit No. Description
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99.1 Press release issued by PC Connection, Inc. on
January 19, 2006.
PC Connection, Inc. Announces Anticipated Fourth Quarter Results;
Company To Release Q4 and Full-Year 2005 Results on January 26
MERRIMACK, N.H.--(BUSINESS WIRE)--Jan. 19, 2006--PC Connection,
Inc. (NASDAQ: PCCC), a leading direct marketer of information
technology (IT) products and solutions, announced today that it
anticipates its fourth quarter earnings to be at or near break even.
The Company incurred approximately $1 million in special charges,
primarily attributable to transitional costs related to the October
21, 2005 acquisition of Amherst Technologies assets. Fourth quarter
results were also affected by the Company's increased investments in
customer acquisition programs and other marketing initiatives, and by
lower than anticipated gross margins due primarily to product mix. Net
sales for the quarter were approximately $399 million, an increase of
approximately $59 million year-over-year and $27 million sequentially.
These increases were due to the positive effects of the Amherst
Technologies transaction and to continued organic growth.
Patricia Gallup, Chairman and Chief Executive Officer of PC
Connection, Inc. said, "The fourth quarter was an investment quarter
for the Company. In addition to our acquisition of the Amherst
Technologies assets, we launched our new "Core 1" sales training
program, and we began making plans for a new sales call center in
Texas that will give us better coverage in the western part of the
country for our small and medium-sized business segment." Gallup
concluded, "We continue to make investments that we believe will
enable the Company to improve profitability and increase long-term
shareholder value."
PC Connection, Inc. will release its fourth quarter 2005 operating
results on the morning of Thursday, January 26, 2006. On January 26,
2006 at 11:00 a.m. ET management will review these results during
their quarterly conference call. The conference call will be available
to the general public on a live webcast -- in listen-only mode -- on
the Company's Web site at www.pcconnection.com and on
www.streetevents.com.
About PC Connection, Inc.
PC Connection, Inc., a Fortune 1000 company, has three sales
subsidiaries, PC Connection Sales Corporation, GovConnection, Inc.,
and MoreDirect, Inc., headquartered in Merrimack, NH, Rockville, MD,
and Boca Raton, FL, respectively. All three subsidiaries can deliver
custom-configured computer systems overnight.
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. (561-237-3300), 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. MoreDirect's TRAXX(R) system is a seamless end-to-end
interface which empowers clients to electronically source, evaluate,
compare prices, and track related technology product purchases in
real-time.
"Safe Harbor" Statement Under the Private Securities Litigation
Reform Act of 1995: This release contains forward-looking statements
that are subject to risks and uncertainties, including, but not
limited to, the impact of changes in market demand and the overall
level of economic activity, or in the level of business investment in
information technology products, competitive products and pricing,
product availability and market acceptance, new products, fluctuations
in operating results, the Company's success at integrating the
acquired assets of Amherst Technologies into its businesses, the
impact of the costs of acquisition and integration, the ability of the
Company to hire and retain Amherst Technologies sales representatives
and other essential personnel, and other risks detailed under the
caption "Factors That May Affect Future Results and Financial
Condition" in the Company's Quarterly Report on Form 10-Q filed with
the Securities and Exchange Commission for the quarter ended September
30, 2005. More specifically, the statements in this release concerning
the Company's outlook for 2005 and 2006, and the statements concerning
the Company's gross margin percentage, productivity, and selling and
administrative costs and other statements of a non-historical basis
(including statements regarding implementing strategies for future
growth, the ability of the Company to improve sales productivity and
increase its active customers) are forward-looking statements that
involve certain risks and uncertainties. Such risks and uncertainties
include the ability to realize market demand for and competitive
pricing pressures on the products and services marketed by the
Company, the continued acceptance of the Company's distribution
channel by vendors and customers, continuation of key vendor and
customer relationships and support programs and the ability of the
Company to hire and retain qualified sales representatives and other
essential personnel.
CONTACT: PC Connection, Inc.
Stephen Baldridge, 603-683-2052