MILFORD, N.H.--(BUSINESS WIRE)--Sept. 28, 1998--PC Connection,
Inc. (NASDAQ: PCCC.O), a leading direct marketer of personal computers
and related accessories, today announced that net sales for the third
quarter ended September 30, 1998 will be in the range of $165 million
to $170 million. Corresponding net sales for the third quarter of 1997
were $139.1 million. The Company currently anticipates that earnings
per share for the quarter ending September 30, 1998 will be in the
range of $0.18 to $0.22.
Net sales during the quarter have been affected by two factors.
The Company completed the conversion of its sales order management and
fulfillment software to a new enterprise software system resulting in
some loss of sales momentum during the first half of the quarter.
Secondarily, late in the quarter, product availability levels for
certain models of computer systems were lower than anticipated.
Patricia Gallup, Chairman and CEO commented, "The completion of
our software conversion was a significant achievement for our company.
Our principal operating systems are now well-positioned for future
growth and expansion, as well as for Year 2000 compliance."
Wayne Wilson, President and Chief Operating Officer, added, "The
software conversion resulted in a temporary inability to meet some of
our customers' delivery expectations during the period. Our account
managers concentrated on maintaining valuable long-term customer
relationships by focusing on resolving specific customer service
issues which arose during the conversion, leading to a short-term loss
of sales."
The second factor impacting sales during the quarter -- lower
than anticipated levels of availability of certain models of computer
systems -- was caused by changes in Intel's processor manufacturing
schedules which resulted in lower supplies of these models throughout
the distribution channel. Based on current information, the Company
believes that product availability will improve during the fourth
quarter.
Gallup concluded, "Despite these factors, we regained sales
momentum in the second half of the quarter with consistent product
shipments at historically high levels. We believe that our current
operating performance confirms the stability of our new enterprise
software system and our core business. We also continue to believe
that annual revenue growth for fiscal 1998 will exceed 30%."
The company is scheduled to release its full third quarter
results the week of October 26th.
PC Connection, Inc. is a leading direct marketer of over 20,000
brand-name computer products through its catalogs PC Connection
(1-800-800-5555) and MacConnection (1-800-800-2222), its Online
SuperStore at pcconnection.com and
macconnection.com, and its outbound telemarketing division.
In recognition of its role as a critical link between manufacturers of
computer products and end users, PC Connection received the highest
ranking of any computer retailer, for the second time, on the most
recent list of the "100 Most Influential Companies in the Computer
Industry," published in PC Magazine. The Company was founded in 1982
and has sales facilities in Milford, Keene, Hudson and Dover, New
Hampshire. PC Connection's full-service distribution and
custom-configuration center is located in Wilmington, Ohio, providing
customers with fully-configured computer systems for convenient
overnight delivery.
"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 competitive products and pricing, product availability, product
demand and market acceptance, new products, fluctuations in operating
results and other risks detailed under the caption "Risk Factors" in
the Company's registration statement filed with the Securities and
Exchange Commission in connection with its initial public offering
(File No. 333-41171).
--30--kvc/bos*
CONTACT: PC Connection, Inc.
Tracey Turner, 603/423-2163
VP, Corporate Communications
tturner@pcconnection.com
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