Scan Source lifts cover off 'disappointing' Euro numbers
Workers pushed out door to improve profits
Scan Source sucked down on some bitter tasting fiscal Q3 numbers last night with both its top and bottom lines taking a knock.
Sales dropped 3.5 per cent to $683m in the quarter to 31 March and net profit fell to $14m from $14.8m in the same period a year ago.
Business was driven by North America said Mike Baur, CEO, who described the output from international operations as "disappointing" - this business represents 27 per cent of global revenues.
"As a result we've taken actions to restructure our overall European business for profitable growth," he added.
The purveyor of POS tech and barcode scanners, physical security and voice, video and data kit said this month it's axing workers in Europe and centralising a support services in the US to save $3.1m in overheads a year.
Selling, general and administrative expenses for the quarter included $1.2m pre-tax in restructuring costs connected to the job cull. Scan Source did not say how many staff are walking the plank.
The distie is forecasting sales of between $715m to $735m for its fiscal Q4 ending 30 June. ®