Intelisys Growth a Highlight in ScanSource Quarterly Earnings

Hybrid distributor ScanSource saw revenue dip in the last three months of 2023, but Intelisys was a shining star in a quarter with mixed results.

ScanSource revenue in its 2024 second fiscal quarter was $885 million, down 12.5% year over year. Its Specialty Technology Solutions unit, which includes enterprise mobile computing, data capture, point of sale, barcode printing and more, took the biggest hit — down 17% YoY.

Networking, however, mitigated that decline a bit. Revenue for ScanSource's Modern Communications and Cloud division, of which tech services distributor Intelisys is part, only fell 5% year over year, to $364 million. Lower communications hardware sales were a big reason for the drop, but sales of Cisco products kept that from suffering further.

Separating Intelisys from the rest of the Modern Communications and Cloud unit shows better results. Its net billings increased to an annualized $2.64 billion, and Intelisys revenue for the quarter was up 7.5%.

And while revenue was down companywide, net income (profit) was a strength in the last quarter for ScanSource. Earnings totaled $32.7 million, up from $25.7 million in its year-ago quarter, on a generally accepted accounting principles (GAAP) basis. The company generated nearly $157 million in operating cash flow and almost $152 million in free cash flow in the first six months of its 2024 fiscal year.

Related:ScanSource Taps Robert Farbak to Lead Intelisys Sales

ScanSource's Mike Baur

“Strong cash flow and Intelisys recurring revenue growth are the highlights for our second quarter results,” said Mike Baur, chair and CEO, ScanSource. “Our teams are navigating well through the challenging industry demand cycles.”