Actually Auric they aren't a distributor, but rather they are a direct marketer, a catalog house, and a web vendor. I would consider Ingram a distributor. In fact CDW is the big kahuna of the group, easily larger than such people as PCCC and NSIT. Of course DELL is much larger, but DELL also manufactures their own computers.
As for the stock options, I see in the cash flow statement the $63.8 million in tax benefits from stock option and restricted stock transactions. I presume that this is what you are referring to. I have no idea how one gets a tax benefit from issuing stock options, but I do note that it is separate from their earnings of $120,000. I note further that the $63 million tax benefits were written directly onto retained earnings, and weren't included in income. As for the income, I also note that the earnings were consumed by the growth in AR.
As for the financing subsidiary, I know nothing about it. Basically I got into this stock for the January effect, which I have gotten. I am debating taking my profits or holding. If you have time, I'd like to hear more about how one writes on retained earnings from tax benefits related to issuing options.
Thanks,
Carl |
