UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
___________________________

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 4, 2011

PC Connection, Inc.	
(Exact name of registrant as specified in charter)	

Delaware	0-23827	02-0513618	
(State or other juris-
diction of incorporation)	(Commission
File Number)	(IRS Employer
Identification No.)	

Rt. 101A, 730 Milford Road
Merrimack, NH	03054	
(Address of principal executive offices)	(Zip Code)	

Registrant’s telephone number, including area code:   (603) 683-2000

N/A	
(Former name or former address, if changed since last report)	

⃞  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 August 4, 2011, PC Connection, Inc. announced its financial results for the quarter ended June 30, 2011.  The full text of the press release issued in connection with the announcement is furnished as Exhibit 99.1 to this Current Report on Form 8-K.  

          The information in this Form 8-K (including Exhibit 99.1) shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as expressly set forth by specific reference in such a filing.

Item 9.01.    Financial Statements and Exhibits
(d)	 	Exhibits	
 	 	 	
 	 	The following exhibit relating to Item 2.02 shall be deemed to be furnished, and not filed:	
 	 	 	
 	 	99.1 Press Release issued by PC Connection, Inc. on August 4, 2011	

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 4, 2011	PC CONNECTION, INC.	
 	 	 	
 	 	By:	/s/ Jack Ferguson	
 	 	 	Jack Ferguson	
 	 	 	Executive Vice President, Treasurer, and	
 	 	 	Chief Financial Officer	

EXHIBIT INDEX

Exhibit No.	Description	
 	 	
99.1	Press release issued by PC Connection, Inc. on August 4, 2011	

Exhibit 99.1

PC Connection, Inc. Reports Second Quarter Results

MERRIMACK, N.H.--(BUSINESS WIRE)--August 4, 2011--PC Connection, Inc. (NASDAQ: PCCC):

SECOND QUARTER SUMMARY:
Q2 net sales: $512.6 million, up 7% year over year
Record gross margin: 13.0% of net sales
Operating income: $12.4 million, or 2.4% of net sales
Diluted earnings per share: $0.28 per share, 56% increase

PC Connection, Inc. (NASDAQ: PCCC), which provides a full range of information technology (IT) solutions from design through deployment in business, government, and education markets, today announced results for the quarter ended June 30, 2011. Net sales for the three months ended June 30, 2011 were $512.6 million, a year-over-year increase of $35.0 million or 7.3%. Net income for the quarter was $7.5 million, or $0.28 per share, compared to net income of $5.0 million, or $0.18 per share for the corresponding prior year quarter.

Net sales for the six months ended June 30, 2011 were $974.5 million, an increase of $88.7 million or 10.0%, compared to $885.8 million for the six months ended June 30, 2010. Net income for the six months ended June 30, 2011 was $12.0 million, or $0.44 per share, compared to net income of $7.5 million, or $0.27 per share, for the six months ended June 30, 2010.

Quarterly Sales by Segment:
Net sales for the SMB business segment increased by 14.4% to $218.0 compared to net sales in the second quarter of 2010. The increase in revenues was due to improved SMB customer profits and the related fulfillment of delayed IT replacement needs.
Net sales for the Large Account segment increased by 7.6% to $160.7 million compared to sales in the second quarter of 2010. As announced last quarter, we acquired ValCom Technology (“ValCom”), a provider of infrastructure management and onsite managed services to medium-to-large corporations. We have included the operating results for ValCom from March 17, 2011, the closing date of the acquisition, in this segment. Excluding ValCom’s sales for the quarter, Large Account sales would have increased year over year by 2.3%.
Net sales to government and education customers (Public Sector segment) were $119.7 million in the quarter, compared to $120.6 million in the second quarter of 2010. A decrease in federal government sales was largely offset by an increase in higher education sales.
Net sales to consumers and SOHO customers by PC Connection Express were $14.1 million, compared to $16.8 million in the second quarter of 2010. Profitability and gross margin improvements continue to be the primary focus for this segment in 2011.

Quarterly Sales by Product Mix:
Notebook and PDA sales, the Company’s largest product category, increased by 10% year over year and accounted for 18% of net sales in the second quarter of 2011 and 2010. Higher unit sales for the quarter, associated with the PC refresh, drove the quarterly revenue growth as average selling prices, or ASPs, decreased year over year.
Desktop/server sales increased by 12% year over year, accounting for 16% of net sales in the second quarter of 2011 and 2010. Desktop sales grew primarily as a result of increased unit sales associated with the PC refresh, as ASPs increased slightly year over year. Server sales decreased year over year by 4% as a result of a delay in enterprise product rollouts.
Software sales increased by 22%, accounting for 15% of net sales in the second quarter of 2011 compared to 13% in the prior year quarter. The three primary business segments contributed to the year-over-year growth in this product category.
Accessory/Other sales by grew 15% year over year and accounted for 13% of net sales in the second quarter of 2011, compared to 12% in the prior year quarter. The increase was due largely to ValCom service revenues and increased sales of point-of-sale equipment.

Overall gross profit dollars for the quarter increased by 19%, or $10.9 million, compared to the second quarter of 2010. Consolidated gross margin, as a percentage of net sales, increased by 130 basis points from 11.7% in the second quarter of 2010 to 13.0% in 2011. Improved invoice selling margins, higher agency revenues, and additional vendor consideration contributed to the significant increase. All four business segments increased their gross margin compared to the prior year quarter as a result of their focus on margin improvement.

Overall annualized sales productivity was largely unchanged in the second quarter of 2011 compared to the second quarter of 2010. Sales productivity in the SMB segment increased by 5%, but was offset by decreases in the Large Account and Public Sector segments of 5% and 1%, respectively. On a consolidated basis, the total number of sales representatives was 630 at June 30, 2011, compared to 588 at June 30, 2010, and 634 at March 31, 2011.

Total selling, general and administrative expenses for the quarter increased year over year by 15%, or $7 million, and increased as a percentage of net sales from 9.9% for the second quarter of 2010 to 10.6% for the second quarter of 2011. The year-over-year increase was attributable to investments in solutions sales capabilities, increased variable compensation associated with improved gross profit, increased marketing expenditures, and the inclusion of ValCom’s operating costs for the quarter.

“We are pleased by the continued improvement in our profitability and overall performance,” said Patricia Gallup, Chairman and Chief Executive Officer. “During the quarter, PC Connection achieved the highest gross margin in its history, while also achieving record second quarter sales. We believe we are driving the right balance of growth, profitability, and strategic capital investments to position us well for future success.”

About PC Connection, Inc.

PC Connection, Inc., a Fortune 1000 company, operates through five sales subsidiaries: PC Connection Sales Corporation, MoreDirect, Inc., GovConnection, Inc., PC Connection Express, Inc., and Professional Computer Center, Inc. d/b/a ValCom Technology, headquartered in Merrimack, NH, Boca Raton, FL, Rockville, MD, Portsmouth, NH, and Itasca, IL, respectively. All five companies can deliver custom-configured computer systems overnight from PC Connection Services’ ISO 9001:2008 certified technical configuration lab at its distribution center in Wilmington, OH. Investors and media can find more information about PC Connection, Inc. at  http://ir.pcconnection.com .

PC Connection Sales Corporation (800-800-5555), the original business of PC Connection, Inc. serving the small- and medium-sized business sector, is a rapid-response provider of IT products and services. It offers more than 180,000 brand-name products through its staff of technically trained sales account managers and catalog telesales representatives, catalogs, and publications, and its website at  www.pcconnection.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™ system is a seamless end-to-end interface that empowers clients to electronically source, evaluate, compare prices, and track related technology product purchases in real-time.

GovConnection, Inc. (800-800-0019) is a rapid-response provider of IT products and services to federal, state, and local government agencies and educational institutions through specialized account managers, catalogs, and publications, and online at  www.govconnection.com .

PC Connection Express, Inc. (888-800-0323) is a rapid-response provider of computer products and consumer electronics to home, home office, and small office users. Customers can purchase the best-known brands in the industry online at  www.pcconnectionexpress.com  or order by calling a trained sales specialist. The subsidiary includes the MacConnection brand (800-800-2222), one of Apple’s largest authorized online resellers at www.macconnection.com .

Professional Computer Center, Inc. d/b/a ValCom Technology (630-285-0500), www.valcomtechnology.com, provides technology services to medium-to-large corporate organizations utilizing its proprietary cloud-based IT service management software, WebSPOC™. Through its experienced technical service personnel ValCom Technology provides network, server, storage, mission-critical onsite support, installation, and host of lifecycle services.

pccc-g

“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 and environment, 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, and the ability of the Company to manage personnel levels in response to fluctuations in revenue, and other risks that could cause actual results to differ materially from those detailed under the caption “Risk Factors” in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission for the year ended December 31, 2010. More specifically, the statements in this release concerning the Company’s outlook for 2011 and other statements of a non-historical basis (including statements regarding the Company’s ability to grow revenues and increase market share) 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, the ability of the Company to integrate the operations of ValCom Technology, and the ability of the Company to hire and retain qualified sales representatives and other essential personnel. The Company assumes no obligation to update the information in this press release or revise any forward-looking statements, whether as a result of any new information, future events, or otherwise.

 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	
CONSOLIDATED SELECTED FINANCIAL INFORMATION	 	 	 	 	 	 	 	 	
At or for the Three Months Ended June 30,	 	2011	 	 	2010	 	 	 	 	
(Dollars and shares in thousands, except operating data, P/E ratio, and per
share data)	 	 	% of
Net Sales	 	 	% of
Net Sales	 	%
Change	 	 	

Operating Data:	 	 	 	 	 	 	 	 	 	 	 	 	
Net sales	 	$	512,561	 	 	 	$	477,546	 	 	 	7	%	 	 	 	 	
Diluted earnings per share	 	$	0.28	 	 	 	$	0.18	 	 	 	56	%	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Gross margin	 	 	13.0	%	 	 	 	11.7	%	 	 	 	 	 	 	 	
Operating margin	 	 	2.4	%	 	 	 	1.8	%	 	 	 	 	 	 	 	
Return on equity (1)	 	 	11.3	%	 	 	 	8.4	%	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Catalogs distributed	 	 	1,453,000	 	 	 	 	2,247,000	 	 	 	(35	%)	 	 	 	 	
Orders entered (2)	 	 	340,600	 	 	 	 	331,700	 	 	 	3	%	 	 	 	 	
Average order size (2)	 	$	1,883	 	 	 	$	1,777	 	 	 	6	%	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Inventory turns (1)	 	 	25	 	 	 	 	27	 	 	 	 	 	 	 	 	
Days sales outstanding	 	 	46	 	 	 	 	49	 	 	 	 	 	 	 	 	

Product Mix:	 	 	 	 	 	 	 	 	 	 	 	 	
Notebook & PDA	 	$	94,350	 	18	%	 	$	86,145	 	18	%	 	10	%	 	 	 	 	
Desktop/Server	 	 	81,494	 	16	 	 	 	73,021	 	16	 	 	12	 	 	 	 	 	
Software	 	 	76,254	 	15	 	 	 	62,335	 	13	 	 	22	 	 	 	 	 	
Video, Imaging & Sound	 	 	52,326	 	10	 	 	 	53,044	 	11	 	 	(1	)	 	 	 	 	
Net/Com Product	 	 	50,089	 	10	 	 	 	49,001	 	10	 	 	2	 	 	 	 	 	
Printer & Printer Supplies	 	 	37,557	 	7	 	 	 	38,867	 	8	 	 	(3	)	 	 	 	 	
Storage Device	 	 	35,720	 	7	 	 	 	38,960	 	8	 	 	(8	)	 	 	 	 	
Memory & System Enhancement	 	 	18,713	 	4	 	 	 	18,483	 	4	 	 	1	 	 	 	 	 	
Accessory/Other	 	 	66,058	 	13	 	 	 	57,690	 	12	 	 	15	 	 	 	 	 	
Total Net Sales	 	$	512,561	 	100	%	 	$	477,546	 	100	%	 	7	%	 	 	 	 	

Net Sales of Enterprise Server and Networking Products (included in the above Product Mix):	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	$	184,279	 	36	%	 	$	178,129	 	37	%	 	3	%	 	 	 	 	

Stock Performance Indicators:	 	 	 	 	 	 	 	 	 	 	 	 	
Actual shares outstanding	 	 	26,541	 	 	 	 	26,721	 	 	 	 	 	 	 	 	
Total book value per share	 	$	10.13	 	 	 	$	9.06	 	 	 	 	 	 	 	 	
Tangible book value per share	 	$	7.99	 	 	 	$	7.19	 	 	 	 	 	 	 	 	
Closing price	 	$	8.28	 	 	 	$	6.06	 	 	 	 	 	 	 	 	
Market capitalization	 	$	219,759	 	 	 	$	161,929	 	 	 	 	 	 	 	 	
Trailing price/earnings ratio	 	 	8	 	 	 	 	12	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
(1) Annualized	 	 	 	 	 	 	 	 	 	 	 	 	
(2) Does not reflect cancellations or returns	 	 	 	 	 	 	 	 	 	 	 	 	

 	 	 	 	 	 	 	 	 	 	 	 	 	

REVENUE AND MARGIN INFORMATION	 	 	 	 	 	 	 	 	 	 	 	 	
For the Three Months Ended June 30,	 	2011	 	 	2010	 	 	 	 	 	 	 	
 	 	Net
Sales	Gross
Margin	 	Net
Sales	Gross
Margin	 	 	 	 	 	 	
(Dollars in thousands)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
SMB	 	$	218,022	 	15.2	%	 	$	190,661	 	14.4	%	 	 	 	 	 	 	 	 	 	
Large Account	 	 	160,717	 	12.0	 	 	 	149,411	 	10.5	 	 	 	 	 	 	 	 	 	 	
Public Sector	 	 	119,727	 	11.1	 	 	 	120,639	 	9.5	 	 	 	 	 	 	 	 	 	 	
Consumer/SOHO	 	 	14,095	 	9.6	 	 	 	16,835	 	8.7	 	 	 	 	 	 	 	 	 	 	
Total	 	$	512,561	 	13.0	%	 	$	477,546	 	11.7	%	 	 	 	 	 	 	 	 	 	

 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	
CONSOLIDATED STATEMENTS OF INCOME	 	 	 	 	 	 	 	 	
Three Months Ended June 30,	 	2011	 	 	2010	 	
(amounts in thousands, except per share data)	 	Amount	 	% of Net Sales	 	Amount	 	% of Net Sales	
 	 	 	 	 	 	 	 	 	
Net sales	 	$	512,561	 	 	100.0	%	 	$	477,546	 	 	100.0	%	
Cost of sales	 	 	445,667	 	 	87.0	 	 	 	421,564	 	 	88.3	 	
Gross profit	 	 	66,894	 	 	13.0	 	 	 	55,982	 	 	11.7	 	
 	 	 	 	 	 	 	 	 	
Selling, general and administrative expenses	 	 	54,477	 	 	10.6	 	 	 	47,501	 	 	9.9	 	
Income from operations	 	 	12,417	 	 	2.4	 	 	 	8,481	 	 	1.8	 	
 	 	 	 	 	 	 	 	 	
Interest expense	 	 	(87	)	 	-	 	 	 	(95	)	 	-	 	
Other, net	 	 	32	 	 	-	 	 	 	35	 	 	-	 	
Income tax provision	 	 	(4,882	)	 	(0.9	)	 	 	(3,398	)	 	(0.7	)	
Net income	 	$	7,480	 	 	1.5	%	 	$	5,023	 	 	1.1	%	

Earnings per common share:	 	 	 	 	 	 	 	 	
Basic	 	$	0.28	 	 	 	 	$	0.19	 	 	 	
Diluted	 	$	0.28	 	 	 	 	$	0.18	 	 	 	
 	 	 	 	 	 	 	 	 	
Weighted average common shares outstanding:	 	 	 	 	 	 	 	 	
Basic	 	 	26,852	 	 	 	 	 	27,116	 	 	 	
Diluted	 	 	26,923	 	 	 	 	 	27,156	 	 	 	

 	 	 	 	 	 	 	 	 	

CONSOLIDATED STATEMENTS OF INCOME	 	 	 	 	 	 	 	 	
Six Months Ended June 30,	 	2011	 	 	2010	 	
(amounts in thousands, except per share data)	 	Amount	 	% of Net Sales	 	Amount	 	% of Net Sales	
 	 	 	 	 	 	 	 	 	
Net sales	 	$	974,487	 	 	100.0	%	 	$	885,808	 	 	100.0	%	
Cost of sales	 	 	848,774	 	 	87.1	 	 	 	781,175	 	 	88.2	 	
Gross profit	 	 	125,713	 	 	12.9	 	 	 	104,633	 	 	11.8	 	
 	 	 	 	 	 	 	 	 	
Selling, general and administrative expenses	 	 	105,767	 	 	10.9	 	 	 	91,975	 	 	10.4	 	
Income from operations	 	 	19,946	 	 	2.0	 	 	 	12,658	 	 	1.4	 	
 	 	 	 	 	 	 	 	 	
Interest expense	 	 	(128	)	 	-	 	 	 	(194	)	 	-	 	
Other, net	 	 	97	 	 	-	 	 	 	110	 	 	-	 	
Income tax provision	 	 	(7,941	)	 	(0.8	)	 	 	(5,117	)	 	(0.6	)	
Net income	 	$	11,974	 	 	1.2	%	 	$	7,457	 	 	0.8	%	

Earnings per common share:	 	 	 	 	 	 	 	 	
Basic	 	$	0.45	 	 	 	 	$	0.27	 	 	 	
Diluted	 	$	0.44	 	 	 	 	$	0.27	 	 	 	
 	 	 	 	 	 	 	 	 	
Weighted average common shares outstanding:	 	 	 	 	 	 	 	 	
Basic	 	 	26,877	 	 	 	 	 	27,136	 	 	 	
Diluted	 	 	26,959	 	 	 	 	 	27,175	 	 	 	

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
CONSOLIDATED BALANCE SHEETS	 	 	 	 	 	 	June 30,	 	 	 	December 31,	 	 	 	 	 	
(amounts in thousands)	 	 	 	 	 	 	 	2011	 	 	 	 	 	2010	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
ASSETS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Current Assets:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Cash and cash equivalents	 	 	 	 	 	 	$	55,292	 	 	 	 	$	35,374	 	 	 	 	 	 	
Accounts receivable, net	 	 	 	 	 	 	 	241,039	 	 	 	 	 	238,011	 	 	 	 	 	 	
Inventories	 	 	 	 	 	 	 	75,432	 	 	 	 	 	74,293	 	 	 	 	 	 	
Deferred income taxes	 	 	 	 	 	 	 	4,351	 	 	 	 	 	3,813	 	 	 	 	 	 	
Prepaid expenses and other current assets	 	 	 	 	 	 	 	4,102	 	 	 	 	 	4,210	 	 	 	 	 	 	
Income taxes receivable	 	 	 	 	 	 	 	2,545	 	 	 	 	 	1,489	 	 	 	 	 	 	
Total current assets	 	 	 	 	 	 	 	382,761	 	 	 	 	 	357,190	 	 	 	 	 	 	
Property and equipment, net	 	 	 	 	 	 	 	20,560	 	 	 	 	 	13,500	 	 	 	 	 	 	
Goodwill	 	 	 	 	 	 	 	51,276	 	 	 	 	 	48,060	 	 	 	 	 	 	
Other intangibles, net	 	 	 	 	 	 	 	5,573	 	 	 	 	 	1,786	 	 	 	 	 	 	
Other assets	 	 	 	 	 	 	 	598	 	 	 	 	 	405	 	 	 	 	 	 	
Total Assets	 	 	 	 	 	 	$	460,768	 	 	 	 	$	420,941	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
LIABILITIES AND STOCKHOLDERS’ EQUITY	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Current Liabilities:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Current maturities of capital lease obligation to affiliate	 	 	 	 	 	 	$	919	 	 	 	 	$	870	 	 	 	 	 	 	
Accounts payable	 	 	 	 	 	 	 	135,352	 	 	 	 	 	114,632	 	 	 	 	 	 	
Accrued expenses and other liabilities	 	 	 	 	 	 	 	30,268	 	 	 	 	 	23,963	 	 	 	 	 	 	
Accrued payroll	 	 	 	 	 	 	 	11,892	 	 	 	 	 	12,652	 	 	 	 	 	 	
Total current liabilities	 	 	 	 	 	 	 	178,431	 	 	 	 	 	152,117	 	 	 	 	 	 	
Deferred income taxes	 	 	 	 	 	 	 	7,437	 	 	 	 	 	5,822	 	 	 	 	 	 	
Capital lease obligation to affiliate, less current maturities	 	 	 	 	 	 	 	1,488	 	 	 	 	 	1,960	 	 	 	 	 	 	
Other liabilities	 	 	 	 	 	 	 	4,584	 	 	 	 	 	3,403	 	 	 	 	 	 	
Total Liabilities	 	 	 	 	 	 	 	191,940	 	 	 	 	 	163,302	 	 	 	 	 	 	
Stockholders’ Equity:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Common stock	 	 	 	 	 	 	 	275	 	 	 	 	 	275	 	 	 	 	 	 	
Additional paid-in capital	 	 	 	 	 	 	 	99,437	 	 	 	 	 	98,871	 	 	 	 	 	 	
Retained earnings	 	 	 	 	 	 	 	176,049	 	 	 	 	 	164,075	 	 	 	 	 	 	
Treasury stock at cost	 	 	 	 	 	 	 	(6,933	)	 	 	 	 	(5,582	)	 	 	 	 	 	
Total Stockholders’ Equity	 	 	 	 	 	 	 	268,828	 	 	 	 	 	257,639	 	 	 	 	 	 	
Total Liabilities and Stockholders’ Equity	 	 	 	 	 	 	$	460,768	 	 	 	 	$	420,941	 	 	 	 	 	 	

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY	
Six Months Ended June 30, 2011 (amounts in thousands)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	Common Stock	 	Additional	 	Retained	 	Treasury Stock	 	 	 	
 	 	 	Shares	 	Amount	 	Paid-In Capital	 	Earnings	 	Shares	 	Amount	 	Total	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Balance–January 1, 2011	 	 	27,507	 	$	275	 	$	98,871	 	 	$	164,075	 	 	(854	)	 	$	(5,582	)	 	$	257,639	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Stock-based compensation expense	 	 	-	 	 	-	 	 	441	 	 	 	-	 	 	-	 	 	 	-	 	 	 	441	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Issuance of common stock under Employee Stock Purchase Plan	 	 	23	 	 	-	 	 	183	 	 	 	-	 	 	-	 	 	 	-	 	 	 	183	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Nonvested stock awards	 	 	-	 	 	-	 	 	(183	)	 	 	-	 	 	28	 	 	 	183	 	 	 	-	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Repurchase of common stock for treasury	 	 	-	 	 	-	 	 	-	 	 	 	-	 	 	(183	)	 	 	(1,534	)	 	 	(1,534	)	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Issuance of common stock under stock incentive plans	 	 	20	 	 	-	 	 	131	 	 	 	-	 	 	-	 	 	 	-	 	 	 	131	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Tax shortfall from stock-based compensation	 	 	-	 	 	-	 	 	(6	)	 	 	-	 	 	-	 	 	 	-	 	 	 	(6	)	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income and comprehensive income	 	 	-	 	 	-	 	 	-	 	 	 	11,974	 	 	-	 	 	 	-	 	 	 	11,974	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Balance–June 30, 2011	 	 	27,550	 	$	275	 	$	99,437	 	 	$	176,049	 	 	(1,009	)	 	$	(6,933	)	 	$	268,828	 	 	

 	 	 	 	 	 	
CONSOLIDATED STATEMENTS OF CASH FLOWS	 	 	 	 	 	
Six Months Ended June 30, (amounts in thousands)	 	 	2011	 	 	 	2010	 	 	
 	 	 	 	 	 	
Cash Flows from Operating Activities:	 	 	 	 	 	
Net income	 	$	11,974	 	 	$	7,457	 	 	
Adjustments to reconcile net income to net cash provided by
operating activities:	 	 	 	 	 	
 	 	 	 	 	 	
Depreciation and amortization	 	 	2,889	 	 	 	2,891	 	 	
Provision for doubtful accounts	 	 	1,119	 	 	 	1,177	 	 	
Stock-based compensation expense	 	 	441	 	 	 	743	 	 	
Deferred income taxes	 	 	1,077	 	 	 	352	 	 	
Fair value adjustment to contingent consideration	 	 	(20	)	 	 	-	 	 	
Loss on disposal of fixed assets	 	 	13	 	 	 	3	 	 	
Income tax deficiency from stock-based compensation	 	 	(6	)	 	 	(78	)	 	
 	 	 	 	 	 	
Changes in assets and liabilities:	 	 	 	 	 	
Accounts receivable	 	 	(884	)	 	 	(12,252	)	 	
Inventories	 	 	(845	)	 	 	148	 	 	
Prepaid expenses and other current assets	 	 	(680	)	 	 	(831	)	 	
Other non-current assets	 	 	(165	)	 	 	124	 	 	
Accounts payable	 	 	18,925	 	 	 	2,653	 	 	
Accrued expenses and other liabilities	 	 	(982	)	 	 	4,959	 	 	
Net cash provided by operating activities	 	 	32,856	 	 	 	7,346	 	 	
 	 	 	 	 	 	
Cash Flows from Investing Activities:	 	 	 	 	 	
Purchases of property and equipment	 	 	(6,120	)	 	 	(1,380	)	 	
Acquisition of ValCom Technology, net of cash acquired	 	 	(4,725	)	 	 	-	 	 	
Purchase of intangible asset	 	 	(450	)	 	 	(800	)	 	
Net cash used for investing activities	 	 	(11,295	)	 	 	(2,180	)	 	
 	 	 	 	 	 	
Cash Flows from Financing Activities:	 	 	 	 	 	
Purchase of treasury shares	 	 	(1,534	)	 	 	(1,399	)	 	
Repayment of capital lease obligation to affiliate	 	 	(423	)	 	 	(379	)	 	
Issuance of stock under Employee Stock Purchase Plan	 	 	183	 	 	 	135	 	 	
Exercise of stock options	 	 	131	 	 	 	-	 	 	
Net cash used for financing activities	 	 	(1,643	)	 	 	(1,643	)	 	
Increase in cash and cash equivalents	 	 	19,918	 	 	 	3,523	 	 	
Cash and cash equivalents, beginning of period	 	 	35,374	 	 	 	46,297	 	 	
Cash and cash equivalents, end of period	 	$	55,292	 	 	$	49,820	 	 	

Non-cash Investing and Financing Activities:	 	 	 	 	 	
Contingent consideration included in accrued expenses and other liabilities	 	$	1,900	 	 	$	-	 	 	
Accrued capital expenditures	 	 	454	 	 	 	126	 	 	
Issuance of nonvested stock from treasury	 	 	183	 	 	 	368	 	 	
 	 	 	 	 	 	
pccc-g

CONTACT:
PC Connection, Inc.
Stephen Baldridge, 603-683-2322
Sr. Vice President of Finance & Corporate Controller