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):   May 2, 2013

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 May 2, 2013, PC Connection, Inc. announced its financial results for the quarter ended March 31, 2013.  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 May 2, 2013.	

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:	May 2, 2013	PC CONNECTION, INC.	
 	 	 	
 	 	By:	/s/ Joseph Driscoll	
 	 	 	Joseph Driscoll	
 	 	 	Senior Vice President, Treasurer, and	
 	 	 	Chief Financial Officer	

EXHIBIT INDEX

Exhibit No.	Description	
 	 	
99.1	Press release issued by PC Connection, Inc. on May 2, 2013.	

Exhibit 99.1

PC Connection, Inc. Reports First Quarter Results

FIRST QUARTER SUMMARY:
Net sales: $505.4 million, up 1.3% year over year
Commercial sales: up 3.8%
Diluted earnings per share: $0.23
Cash balance increased to $59 million, from $40 million at 12/31/12

MERRIMACK, N.H.--(BUSINESS WIRE)--May 2, 2013--PC Connection, Inc. (NASDAQ: PCCC), a provider of a full range of information technology (IT) solutions to business, government, and education markets, today announced results for the quarter ended March 31, 2013. Net sales for the first quarter of 2013 were $505.4 million, an increase of 1.3% compared to $498.8 million for the first quarter of 2012. Net income for the quarter ended March 31, 2013 was $6.1 million, or $0.23 per share, compared to net income of $5.5 million, or $0.21 per share, for the corresponding prior year quarter.

Included in the results for the quarter ended March 31, 2012 were pre-tax charges of $1.1 million related to awards granted upon the retirement of a former executive officer, as well as workforce reductions. We did not record any special charges for the first quarter of 2013. A reconciliation between net income on a GAAP basis and pro forma net income is provided in a table below immediately following the Condensed Consolidated Statements of Income. Earnings before interest, taxes, depreciation and amortization, stock-based compensation expense, and special charges (“Adjusted EBITDA”) totaled $63.3 million for the twelve months ended March 31, 2013, as compared to $57.2 million for the twelve months ended March 31, 2012.

Quarterly Sales by Segment:
Net sales for the SMB segment increased by 4.6% in the quarter to $235.7 million, compared to net sales in the first quarter of 2012. Net/com sales experienced the strongest growth due to our investment in solution sales capabilities, and both notebook and desktop sales also increased year over year.
Net sales for the Large Account segment increased by 2.8% to $186.4 million, compared to net sales in the first quarter of 2012. We continued to experience strong growth in notebook and software sales in the Large Account segment. Commercial sales, which consists of SMB and Large Account sales, increased by 3.8% from the prior year quarter.
Net sales to government and education customers (Public Sector segment) decreased by 9.6% year over year to $83.4 million. Sales to state and local government and educational institutions increased slightly compared to last year, while sales to the federal government decreased by 29.0% year over year due to federal budget spending cuts.

Quarterly Sales by Product Mix:
Notebook/tablet sales, the Company’s largest product category, increased by 11% year over year and accounted for 19% of net sales in the first quarter of 2013, compared to 17% of net sales in the first quarter of 2012. All three segments contributed to the year-over-year sales growth in this category with Large Account achieving the largest increase of 28%. Unit sales increased by 14% year over year and offset a slight decline in average selling prices.
Desktop/server sales decreased by 8% year over year, accounting for 15% of net sales in the first quarter of 2013 compared to 17% of net sales in the first quarter of 2012. Decreased demand for desktop/servers from our Large Account customers was partially offset by increased sales in both our SMB and Public Sector segments.
Software sales increased by 4% year over year, accounting for 15% of net sales in the first quarter of 2013 compared to 14% in the first quarter of 2012. Strong growth in Large Account software sales was due to network management, security, and license renewals.

Overall gross profit dollars increased in the first quarter of 2013 compared to the prior year quarter. However, consolidated gross margin, as a percentage of net sales, decreased slightly to 13.2% in the first quarter of 2013 compared to 13.4% in the prior year quarter.

Total selling, general and administrative expenses increased slightly in dollars year over year, but improved as a percentage of net sales to 11.2% for the first quarter of 2013, from 11.3% for the first quarter of 2012. We are continuing to invest in solution sales capabilities and expect SG&A expenses to rise accordingly as the year progresses, however, we are highly focused on improving efficiencies and streamlining wherever possible.

The Company generated significant positive cash flow in the quarter ended March 31, 2013. Total cash was $58.5 million compared to $39.9 million at December 31, 2012. Days sales outstanding were 40 days at March 31, 2013, and inventory was reduced by $10.0 million from December 31, 2012 levels.

“I am pleased with our performance this quarter, especially in light of the challenging environment in which we were operating. PC Connection increased sales in the commercial space by 3.8%, and continued to focus on taking market share through investments in higher value-added sales. Our healthcare vertical was a bright spot, with a 21% sales increase, and software also continued to be a solid growth area. In addition, we strengthened our balance sheet and generated positive cash flow during the quarter,” said Timothy McGrath, President and Chief Executive Officer. “We believe we have the right combination of talent, experience, and strategies to gain market share and enhance long-term shareholder value.”

Non-GAAP Financial Information

Adjusted EBITDA, pro forma net income, and pro forma earnings per share are non-GAAP financial measures. This information is included to provide information with respect to the Company’s operating performance and earnings. Reconciliations of Adjusted EBITDA, pro forma net income, and pro forma earnings per share to GAAP net income are provided in tables immediately following the Condensed Consolidated Statements of Income.

About PC Connection, Inc.

PC Connection, Inc., a Fortune 1000 company, has three sales companies: PC Connection Sales Corporation, MoreDirect, Inc., and GovConnection, Inc., headquartered in Merrimack, NH; Boca Raton, FL; and Rockville, MD; respectively. All three companies can deliver custom-configured computer systems overnight from our ISO 9001:2008 certified technical configuration lab at our 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 primarily the small- and medium-sized business sector, is a rapid-response provider of IT products and services. It offers more than 300,000 brand-name products through its staff of technically trained sales account managers and telesales specialists, catalogs, publications, and its website at  www.pcconnection.com . This company also serves consumer and small office users and is, under its MacConnection brand (800-800-2222), one of Apple’s largest authorized online resellers at  www.macconnection.com .

MoreDirect, Inc. (561-237-3300), www.moredirect.com, provides corporate technology buyers with best-in-class IT solutions, in-depth IT supply-chain expertise, and access to over 300,000 products and 1,600 vendors through TRAXX™, a cloud-based eProcurement system. Backed by over 500 technical certifications, MoreDirect’s team of engineers, software licensing specialists, and project managers help reduce the cost and complexity of buying hardware, software, and services throughout the entire IT lifecycle.

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, publications, and online at  www.govconnection.com .

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 and other costs 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, 2012. More specifically, the statements in this release concerning the Company’s outlook for gross margin and selling, general, and administrative expenses in 2013, the Company’s anticipated product growth categories, and other statements of a non-historical basis (including statements regarding the Company’s ability to grow revenues, improve gross margins, increase market share, and increase earnings per 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 gain or maintain market share, and the ability of the Company to hire and retain qualified sales representatives and other essential personnel. The Company disclaims any 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 March 31,	 	2013	 	2012	 	 	
 	 	 	 	% of	 	 	 	% of	 	%	
(Amounts and shares in thousands, except operating data, P/E ratio, and per share data)	 	 	 	Net Sales	 	 	 	Net Sales	 	Change	
 	 	 	 	 	 	 	 	 	 	 	
Operating Data:	 	 	 	 	 	 	 	 	 	 	
Net sales	 	$	505,423	 	 	 	 	$	498,763	 	 	 	 	1	%	
Diluted earnings per share	 	$	0.23	 	 	 	 	$	0.21	 	 	 	 	10	%	
 	 	 	 	 	 	 	 	 	 	 	
Gross margin	 	 	13.2	%	 	 	 	 	13.4	%	 	 	 	 	
Operating margin	 	 	2.0	%	 	 	 	 	1.8	%	 	 	 	 	
Return on equity (1)	 	 	11.5	%	 	 	 	 	11.1	%	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	
Inventory turns	 	 	26	 	 	 	 	 	25	 	 	 	 	 	
Days sales outstanding	 	 	40	 	 	 	 	 	43	 	 	 	 	 	

Product Mix:	 	 	 	 	 	 	 	 	 	 	
Notebook/Tablet	 	$	94,311	 	 	19	%	 	$	84,699	 	 	17	%	 	11	%	
Desktop/Server	 	 	76,204	 	 	15	 	 	 	82,443	 	 	17	 	 	(8	%)	
Software	 	 	75,213	 	 	15	 	 	 	72,286	 	 	14	 	 	4	%	
Net/Com Product	 	 	50,187	 	 	10	 	 	 	48,351	 	 	10	 	 	4	%	
Video, Imaging & Sound	 	 	43,706	 	 	8	 	 	 	48,203	 	 	10	 	 	(9	%)	
Printer & Printer Supplies	 	 	37,238	 	 	7	 	 	 	37,171	 	 	7	 	 	0	%	
Storage	 	 	30,301	 	 	6	 	 	 	36,033	 	 	7	 	 	(16	%)	
Memory & System Enhancement	 	 	13,223	 	 	3	 	 	 	17,073	 	 	3	 	 	(23	%)	
Accessory/Services/Other	 	 	85,040	 	 	17	 	 	 	72,504	 	 	15	 	 	17	%	
Total Net Sales	 	$	505,423	 	 	100	%	 	$	498,763	 	 	100	%	 	1	%	

Stock Performance Indicators:	 	 	 	 	 	 	 	 	 	 	
Actual shares outstanding	 	 	26,071	 	 	 	 	 	26,276	 	 	 	 	 	
Total book value per share	 	$	11.47	 	 	 	 	$	10.59	 	 	 	 	 	
Tangible book value per share	 	$	9.37	 	 	 	 	$	8.45	 	 	 	 	 	
Closing price	 	$	16.35	 	 	 	 	$	8.22	 	 	 	 	 	
Market capitalization	 	$	426,261	 	 	 	 	$	215,989	 	 	 	 	 	
Pro forma trailing price/earnings ratio	 	 	13.0	 	 	 	 	 	7.3	 	 	 	 	 	
LTM Adjusted EBITDA (2)	 	$	63,291	 	 	 	 	$	57,232	 	 	 	 	 	
Adjusted market capitalization/LTM Adjusted EBITDA (3)	 	 	5.8	 	 	 	 	 	2.9	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	
(1) Based on last twelve month's net income.	
(2) Adjusted EBITDA is defined as EBITDA (earnings before interest, taxes, depreciation and amortization) adjusted for stock-based compensation and special charges.	
(3) Adjusted market capitalization is defined as gross market capitalization less cash balance.	

REVENUE AND MARGIN INFORMATION	 	 	 	 	 	 	 	 	 	 	
For the Three Months Ended March 31,	 	2013	 	2012	 	 	
 	 	Net	 	Gross	 	Net	 	Gross	 	 	
(amounts in thousands)	 	Sales	 	Margin	 	Sales	 	Margin	 	 	
 	 	 	 	 	 	 	 	 	 	 	
SMB	 	$	235,678	 	 	15.1	%	 	$	225,295	 	 	15.2	%	 	 	
Large Account	 	 	186,395	 	 	11.5	 	 	 	181,316	 	 	11.8	 	 	 	
Public Sector	 	 	83,350	 	 	11.9	 	 	 	92,152	 	 	11.9	 	 	 	
Total	 	$	505,423	 	 	13.2	%	 	$	498,763	 	 	13.4	%	 	 	

 	
CONDENSED CONSOLIDATED STATEMENTS OF INCOME	
Three Months Ended March 31,	 	2013	 	2012	
(amounts in thousands, except per share data)	 	Amount	 	% of Net Sales	 	Amount	 	% of Net Sales	
 	 	 	 	 	 	 	 	 	
Net sales	 	$	505,423	 	 	100.0	%	 	$	498,763	 	 	100.0	%	
Cost of sales	 	 	438,585	 	 	86.8	 	 	 	432,152	 	 	86.6	 	
Gross profit	 	 	66,838	 	 	13.2	 	 	 	66,611	 	 	13.4	 	
 	 	 	 	 	 	 	 	 	
Selling, general and administrative expenses	 	 	56,713	 	 	11.2	 	 	 	56,450	 	 	11.3	 	
Special charges	 	 	-	 	 	-	 	 	 	1,135	 	 	0.3	 	
Income from operations	 	 	10,125	 	 	2.0	 	 	 	9,026	 	 	1.8	 	
 	 	 	 	 	 	 	 	 	
Interest/other expense, net	 	 	(50	)	 	-	 	 	 	46	 	 	-	 	
Income tax provision	 	 	(3,977	)	 	(0.8	)	 	 	(3,597	)	 	(0.7	)	
Net income	 	$	6,098	 	 	1.2	%	 	$	5,475	 	 	1.1	%	
 	 	 	 	 	 	 	 	 	
Earnings per common share:	 	 	 	 	 	 	 	 	
Basic	 	$	0.23	 	 	 	 	$	0.21	 	 	 	
Diluted	 	$	0.23	 	 	 	 	$	0.21	 	 	 	
 	 	 	 	 	 	 	 	 	
Shares used in the computation of earnings per share:	 	 	 	 	 	 	 	 	
Basic	 	 	25,998	 	 	 	 	 	26,439	 	 	 	
Diluted	 	 	26,272	 	 	 	 	 	26,586	 	 	 	

 	
A RECONCILIATION BETWEEN GAAP AND PRO FORMA NET INCOME	 	 	 	 	
Three Months Ended March 31,	 	 	2013	 	 	2012	
(provided for comparison of our operating results without special charges, amounts in thousands)	 	 	 	 	
GAAP net income	 	$	6,098	 	$	5,475	
Special charges (after tax)	 	 	-	 	 	681	
Pro forma net income	 	$	6,098	 	$	6,156	
 	 	 	 	 	
Pro forma diluted earnings per common share	 	$	0.23	 	$	0.23	

 	
EBITDA AND ADJUSTED EBITDA	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
A reconciliation of EBITDA and Adjusted EBITDA is detailed below. EBITDA is defined as earnings before interest, taxes, depreciation, and amortization. Adjusted EBITDA means EBITDA adjusted for certain items which are described in the table below. Both EBITDA and Adjusted EBITDA are considered non-GAAP financial measures. Generally, a non-GAAP financial measure is a numerical measure of a company’s performance, financial position, or cash flows that either excludes or includes amounts that are not normally included or excluded in the most directly comparable measure calculated and presented in accordance with GAAP. We believe that EBITDA and Adjusted EBITDA provide helpful information with respect to our operating performance including our ability to fund our future capital expenditures and working capital requirements. Adjusted EBITDA also provides helpful information as it is the primary measure used in certain financial covenants contained in our credit agreements.	
 	 	 	 	 	 	 	 	 	 	 	 	 	
(amounts in thousands)	 	Three Months Ended March 31,	 	LTM Ended March 31, (1)	
 	 	 	2013	 	 	2012	 	 	% Change	 	 	2013	 	 	2012	 	% Change	
Net income	 	$	6,098	 	$	5,475	 	 	 	 	$	33,694	 	$	29,768	 	 	
Depreciation and amortization	 	 	1,627	 	 	1,558	 	 	 	 	 	6,964	 	 	6,165	 	 	
Income tax expense	 	 	3,977	 	 	3,597	 	 	 	 	 	21,816	 	 	19,182	 	 	
Interest/other expense, net	 	 	50	 	 	(46	)	 	 	 	 	221	 	 	158	 	 	
EBITDA	 	 	11,752	 	 	10,584	 	 	 	 	 	62,695	 	 	55,273	 	 	
Stock-based compensation	 	 	148	 	 	1,047	 	 	 	 	 	596	 	 	1,666	 	 	
Other special charges	 	 	-	 	 	293	 	 	 	 	 	-	 	 	293	 	 	
Adjusted EBITDA	 	$	11,900	 	$	11,924	 	 	-	 	$	63,291	 	$	57,232	 	11%	
 	 	 	 	 	 	 	 	 	 	 	 	 	
(1) LTM: Last twelve months	 	 	 	 	 	 	 	 	 	 	 	 	

 	
 	 	March 31,	 	December 31,	
CONDENSED CONSOLIDATED BALANCE SHEETS	 	 	2013	 	 	 	2012	 	
(amounts in thousands)	 	 	 	 	
 	 	 	 	 	
ASSETS	 	 	 	 	
Current Assets:	 	 	 	 	
Cash and cash equivalents	 	$	58,529	 	 	$	39,907	 	
Accounts receivable, net	 	 	236,282	 	 	 	267,310	 	
Inventories	 	 	59,593	 	 	 	69,637	 	
Prepaid expenses and other current assets	 	 	5,134	 	 	 	3,934	 	
Deferred income taxes	 	 	5,250	 	 	 	5,250	 	
Income taxes receivable	 	 	204	 	 	 	434	 	
Total current assets	 	 	364,992	 	 	 	386,472	 	
Property and equipment, net	 	 	26,546	 	 	 	26,104	 	
Goodwill	 	 	51,276	 	 	 	51,276	 	
Other intangibles, net	 	 	3,532	 	 	 	3,757	 	
Other assets	 	 	703	 	 	 	714	 	
Total Assets	 	$	447,049	 	 	$	468,323	 	
 	 	 	 	 	
LIABILITIES AND STOCKHOLDERS’ EQUITY	 	 	 	 	
Current Liabilities:	 	 	 	 	
Current maturities of capital lease obligation to affiliate	 	$	729	 	 	$	989	 	
Accounts payable	 	 	94,609	 	 	 	126,110	 	
Accrued expenses and other liabilities	 	 	27,010	 	 	 	22,562	 	
Accrued payroll	 	 	12,202	 	 	 	13,824	 	
Total current liabilities	 	 	134,550	 	 	 	163,485	 	
Deferred income taxes	 	 	10,403	 	 	 	10,514	 	
Other liabilities	 	 	3,012	 	 	 	3,021	 	
Total Liabilities	 	 	147,965	 	 	 	177,020	 	
Stockholders’ Equity:	 	 	 	 	
Common stock	 	 	280	 	 	 	278	 	
Additional paid-in capital	 	 	103,416	 	 	 	101,735	 	
Retained earnings	 	 	211,369	 	 	 	205,271	 	
Treasury stock at cost	 	 	(15,981	)	 	 	(15,981	)	
Total Stockholders’ Equity	 	 	299,084	 	 	 	291,303	 	
Total Liabilities and Stockholders’ Equity	 	$	447,049	 	 	$	468,323	 	

 	 	 	 	 	
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS	 	 	 	 	
Three Months Ended March 31,	 	 	2013	 	 	 	2012	 	
(amounts in thousands)	 	 	 	 	
Cash Flows from Operating Activities:	 	 	 	 	
Net income	 	$	6,098	 	 	$	5,475	 	
Adjustments to reconcile net income to net cash provided by operating activities:	 	 	 	 	
Depreciation and amortization	 	 	1,627	 	 	 	1,558	 	
Provision for doubtful accounts	 	 	202	 	 	 	99	 	
Deferred income taxes	 	 	(111	)	 	 	1,894	 	
Stock-based compensation expense	 	 	148	 	 	 	1,047	 	
Loss on disposal of fixed assets	 	 	5	 	 	 	71	 	
Income tax benefit from stock-based compensation	 	 	155	 	 	 	6	 	
Excess tax benefit from exercise of stock options	 	 	(216	)	 	 	-	 	
Fair value adjustment to contingent consideration	 	 	-	 	 	 	10	 	
 	 	 	 	 	
Changes in assets and liabilities:	 	 	 	 	
Accounts receivable	 	 	30,826	 	 	 	52,686	 	
Inventories	 	 	10,044	 	 	 	14,909	 	
Prepaid expenses and other current assets	 	 	(970	)	 	 	(1,839	)	
Other non-current assets	 	 	11	 	 	 	(68	)	
Accounts payable	 	 	(31,605	)	 	 	(19,041	)	
Accrued expenses and other liabilities	 	 	2,817	 	 	 	(1,646	)	
Net cash provided by operating activities	 	 	19,031	 	 	 	55,161	 	
 	 	 	 	 	
Cash Flows from Investing Activities:	 	 	 	 	
Purchases of property and equipment	 	 	(1,745	)	 	 	(2,823	)	
Net cash used for investing activities	 	 	(1,745	)	 	 	(2,823	)	
 	 	 	 	 	
Cash Flows from Financing Activities:	 	 	 	 	
Repayment of short-term borrowings	 	 	-	 	 	 	(12,471	)	
Proceeds from short-term borrowings	 	 	-	 	 	 	7,204	 	
Exercise of stock options	 	 	1,380	 	 	 	14	 	
Excess tax benefit from exercise of stock options	 	 	216	 	 	 	-	 	
Repayment of capital lease obligation to affiliate	 	 	(260	)	 	 	(233	)	
Purchase of treasury shares	 	 	-	 	 	 	(1,466	)	
Payment of payroll taxes on stock-based compensation through shares withheld	 	 	-	 	 	 	(249	)	
Net cash provided by (used for) financing activities	 	 	1,336	 	 	 	(7,201	)	
Increase in cash and cash equivalents	 	 	18,622	 	 	 	45,137	 	
Cash and cash equivalents, beginning of period	 	 	39,907	 	 	 	4,615	 	
Cash and cash equivalents, end of period	 	$	58,529	 	 	$	49,752	 	
 	 	 	 	 	
Non-cash Investing and Financing Activities:	 	 	 	 	
Accrued capital expenditures	 	$	356	 	 	$	520	 	
Issuance of nonvested stock from treasury	 	 	-	 	 	 	740	 	
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CONTACT:
PC Connection, Inc.
Joseph Driscoll, 603-683-2322
Senior Vice President, Treasurer and Chief Financial Officer