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CDW's Average Daily Sales Increase 22.6 Percent in September 2007 and 21.8 Percent in the Third Quarter of 2007
VERNON HILLS, Ill. - October 10, 2007 - CDW Corporation (NASDAQ: CDWC), a leading provider of technology products and services to business, government and education, today announced average daily sales for September 2007 were $36.423 million, an increase of 22.6 percent compared to average daily sales of $29.697 million for September 2006. Total sales for September 2007 were $692.0 million, an increase of 16.5 percent compared to total sales of $593.9 million for September 2006. There were 19 billing days in September 2007 and 20 billing days in September 2006.
As previously announced, CDW completed the acquisition of Berbee Information Networks Corporation on October 11, 2006. September 2006 sales do not include Berbee sales, while September 2007 sales include Berbee sales. Excluding Berbee sales in September 2007, and therefore on a non-GAAP basis, CDW's average daily sales for September 2007 were $34.440 million, an increase of 16.0 percent compared to average daily sales for September 2006 of $29.697 million and total sales for September 2007 were $654.4 million, an increase of 10.2 percent compared to total sales of $593.9 million for September 2006. There were 19 billing days in September 2007 and 20 billing days in September 2006.
In September 2007, average daily sales for the corporate sector segment increased 13.1 percent and average daily sales for the public sector segment increased 20.6 percent compared to the prior year period. While CDW did not own Berbee prior to October 11, 2006, the Company is providing comparative information for Berbee. Compared to the prior year period, average daily sales for Berbee increased 29.7 percent in September 2007. Compared to the public sector and corporate sector segments, Berbee's business model is more project oriented, which can result in a greater degree of variability in sales on a monthly basis.
Product categories that achieved the strongest year-over-year unit volume growth for the month on an average daily basis included desktop computers, data storage, software, video and memory. Product categories exclude Berbee sales.
Third Quarter of 2007 Sales Results:
Total sales in the third quarter of 2007 were $2.119 billion compared to $1.739 billion in the third quarter of 2006, an increase of 21.8 percent. Average daily sales in the third quarter of 2007 were $33.636 million compared to $27.610 million in the third quarter of 2006, representing a 21.8 percent increase. There were 63 billing days in both the third quarter of 2007 and the third quarter of 2006.
As previously announced, CDW completed the acquisition of Berbee Information Networks Corporation on October 11, 2006. Total sales for the third quarter of 2006 do not include Berbee sales, while the third quarter of 2007 sales include Berbee sales. Excluding Berbee sales in the third quarter of 2007, and therefore on a non-GAAP basis, total sales were $1.992 billion, an increase of 14.5 percent compared to total sales of $1.739 billion for the third quarter of 2006 and average daily sales for the third quarter of 2007 were $31.616 million, an increase of 14.5 percent compared to average daily sales for the third quarter of 2006 of $27.610 million.
Total corporate sector segment sales in the third quarter of 2007 were $1.225 billion compared to $1.088 billion in the third quarter of 2006, representing an increase of 12.6 percent. Third quarter of 2007 average daily sales for the corporate sector segment were $19.452 million compared to $17.276 million in the third quarter of 2006, representing an increase of 12.6 percent. Total public sector segment sales in the third quarter of 2007 were $766.3 million compared to $651.1 million in the third quarter of 2006, representing an increase of 17.7 percent. Third quarter of 2007 average daily sales for the public sector segment were $12.164 million compared to $10.335 million in the third quarter of 2006, representing an increase of 17.7 percent.
While CDW did not own Berbee prior to October 11, 2006, the Company is providing comparative information for Berbee. Compared to the prior year period, total sales for Berbee increased 8.4 percent in the third quarter of 2007. Compared to the public sector and corporate sector segments, Berbee's business model is more project oriented, which can result in a greater degree of variability in sales on a quarterly basis.
Product categories that achieved the strongest year-over-year unit volume growth for the third quarter of 2007 included desktop computers, software, video, memory and input devices. Product categories exclude Berbee sales.
Company Scheduled to Announce Third Quarter of 2007 Results on October 23, 2007
The Company is scheduled to announce third quarter of 2007 earnings on Tuesday, October 23, 2007, in the event the previously announced transaction with Madison Dearborn Partners, LLC and Providence Equity Partners Inc. has not closed prior to then.
About CDW
CDW®, ranked No. 342 on the FORTUNE 500, is a leading provider of technology solutions for business, government and education. CDW is a principal source of technology products and services including top name brands such as Acer, Adobe, APC, Apple, Cisco, EMC, Fujitsu, HP, IBM, Lenovo, Microsoft, Panasonic, Quantum, Samsung, Sony, Symantec, ViewSonic and Xerox. CDW's direct model offers customers one-on-one relationships with knowledgeable account managers and access to approximately 820 on-staff engineers and advanced technology specialists who customize solutions for customers' complex technology needs. CDW also provides same-day product shipping and post-sales technical support.
CDW was founded in 1984 and as of June 30, 2007, employed approximately 5,880 coworkers. In 2006, the company generated sales of $6.8 billion. For more information, visit CDW.com.
Forward-Looking Statements
Statements about the expected timing, completion and effects of the proposed merger between CDW and a subsidiary of VH Holdings, Inc. (which upon closing of the merger will be controlled by investment funds affiliated with Madison Dearborn Partners, LLC and Providence Equity Partners Inc.) and all other statements in this press release other than historical facts, constitute forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Readers are cautioned not to place undue reliance on these forward-looking statements, each of which is qualified in its entirety by reference to the following cautionary statements. Forward-looking statements speak only as of the date hereof and are based on current expectations and involve a number of assumptions, risks and uncertainties that could cause actual results to differ materially from those projected in the forward-looking statements. CDW may not be able to complete the proposed merger because of a number of factors, including, among other things, the failure of financing or the failure to satisfy the remaining closing conditions. Other risks and uncertainties that may affect forward-looking statements are described in the reports filed by CDW with the SEC under the Securities Exchange Act of 1934, as amended, including without limitation CDW's Annual Report on Form 10-K for the year ended December 31, 2006, and the definitive proxy statement dated July 13, 2007, relating to the special meeting of shareholders that was held on August 9, 2007.
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