Click here to close now.




















Welcome!

Microsoft Cloud Authors: Adine Deford, Elizabeth White, the Editor, Michael Krems, Xenia von Wedel

News Feed Item

Softchoice Announces Record Fourth Quarter Earnings, Increases Quarterly Dividend

Fourth Quarter Highlights

  • Reported revenue grows 15 percent
  • Gross profit increases 14 percent
  • EBITDA up 30 percent
  • Net income increases 29 percent.  Adjusted net earnings per diluted share grows 50 percent

2012 Full Year Highlights

  • Net income increases 25 percent.  Adjusted net earnings per diluted share increases 14 percent to $1.37 per diluted share
  • Gross profit up 10 percent

TORONTO, Feb. 19, 2013 /CNW/ - Softchoice Corporation (TSX: SO), a North American provider of technology solutions and services, today reported earnings for the fourth quarter and fiscal year 2012.

For the three-month period ended December 31, 2012, Softchoice reported net income of US$8.4 million compared to US$6.5 million for the same period in the prior year. Eliminating the impact of certain non-cash foreign exchange gains and losses, and an adjustment resulting from the retroactive change to Canadian tax legislation, adjusted net income grew 50 percent in the period, increasing to US$9.5 million, or US$0.48 per diluted share, compared to adjusted net income of US$6.3 million, or US$0.32 per diluted share recorded in the fourth quarter of 2011.

Fourth quarter revenue grew 15 percent to US$308.7 million. The Company's Services business grew 65 percent compared to the same quarter in the prior year, bolstered by the additive impact of the acquisition of Unis Lumin. Sales of Enterprise Software, Servers, Storage and Networking solutions also made steady gains in the period, increasing 33 percent for the quarter while sales of Microsoft grew by 10 percent. Fourth quarter earnings before interest, taxes, depreciation and amortization ("EBITDA") margin increased 63 basis points to 5.4 percent.

"Our focus on delivering high-value solutions and services to our clients and expanding our reach within the small and medium-size business segment resulted in strong net income growth in the quarter," said David MacDonald, President and CEO of Softchoice.  "Moreover, the solid growth in EBITDA reflects the leverage our operating model is delivering to our business as we benefit from the integration of UNIS LUMIN, major upgrades to our internal CRM system and strong execution on the part of our field sales organization."

On a full year basis, Softchoice reported net income of US$27.7 million or US$1.37 per diluted share. On an adjusted basis, earnings amounted to US$27.5 million or US$1.37 per diluted share, representing an earnings increase of 15 percent compared to the US$23.9 million or US$1.20 per diluted share reported for fiscal year 2011.

"The fourth quarter was a strong close to a transformational year for Softchoice," added Mr. MacDonald.  "In 2012 we largely completed the integration of UNIS LUMIN, built new recurring revenue streams with the launch of Softchoice Cloud and Keystone, our first North American-wide managed services offering, and strengthened our Services organization with the appointment of new regional leadership.  With solid momentum and alignment around our services strategy, we are well-positioned to continue outgrowing the market."

In August 2012, the Company reinstated its quarterly dividend in the amount of CAD$0.07 per common share. The quarter will see a dividend increase to CAD$0.09 per common share.  This dividend will be payable on March 15, 2013 to shareholders of record as of March 1, 2013.

At the end of the quarter, Softchoice had cash on hand of US$67.9 million compared to $33.0 million ending the fourth quarter of 2011 and total debt of nil. Cash flow generated from operations for the year was $44.1 million, which increased by $5.5 million or 14 percent.

Quarterly Operating Highlights

  • In the fourth quarter, total revenue, including imputed revenue, increased 9 percent to $589.4 million.   
  • Microsoft Canada recognized Softchoice with awards for marketing innovation and collaboration at the recent 2012 IMPACT awards ceremony in Toronto.
  • During the quarter, Softchoice was honored with the Cisco Customer Satisfaction Excellence award for both the U.S. and Canada, the highest distinction a partner can achieve for customer satisfaction within the Cisco Channel Partner Community.
  • Softchoice has once again been named to the CRN Tech Elite 250 list, a definitive list of solution providers with deep technical expertise and premier certifications in the data center market.

The Management's Discussion & Analysis and Audited Consolidated Financial Statements can be found on the company's website at http://www.softchoice.com/about/ir/financials.aspx

Softchoice Fourth Quarter Earnings Call Details

Softchoice Corporation will host its fourth quarter earnings call on February 20, 2013 at 8:00 am ET.

The call will be moderated by David MacDonald, Softchoice's President and CEO and Chief Financial Officer, David Long. The conference call will begin with a brief web presentation followed by a question-and-answer session.

Participant Information:

Local Dial in number: 416 800 1066

Toll Free Dial in number: 1 866 212 4491

Webcast URL: 

http://www.snwebcastcenter.com/custom_events/softchoice-20130220/site/

To ensure participation, please dial in at least 10 minutes prior to the start of the conference at 8:00 am ET.

For those unable to attend the call, a link will be made available on the Softchoice website to an archived web and audio version on February 21, 2013.

About Softchoice

As a leading North American provider of technology solutions and services, Softchoice combines the efficiency and reliability of a national IT supplier with the personal touch and technical expertise of a local solutions provider. Softchoice's holistic approach to technology includes solution design, implementation and asset management services, as well as access to one of the most comprehensive and cost-effective technology distribution networks in North America. With over 1,200 employees, Softchoice manages the technology needs of thousands of corporate and public sector organizations across the United States and Canada.

Softchoice stock is listed on the Toronto Stock Exchange (TSX) under the trading symbol "SO." The common shares of Softchoice are not registered under the U.S. Securities Act of 1933 and are not publicly traded in the United States.

Forward-Looking Statements

This press release contains forward-looking statements that involve risks and uncertainties. These forward-looking statements relate to expectations, intentions and plans contained in this press release that are not historical fact. When used in this press release, the words "anticipate", "expect", "will" and similar expressions generally identify forward-looking statements. These statements reflect our current expectations and are subject to a number of risks and uncertainties including, but not limited to, change in technology and general market conditions, many of which are set out or incorporated by reference in the Company's latest Annual Information Form. Due to the many risks and uncertainties, Softchoice cannot assure that the forward-looking statements contained in this press release will be realized.

SOFTCHOICE CORPORATION
Consolidated Statements of Financial Position
(In thousands of U.S. dollars)

December 31, 2012 and 2011

                       
            2012         2011
Assets                      
Current assets:                      
  Cash       $   67,875     $   32,993
  Trade and other receivables           280,241         306,434
  Inventories             3,836         8,872
  Deferred costs            2,644         2,591
  Prepaid expenses and other assets            7,635         6,158
  Total current assets            362,231         357,048
Non-current assets:                      
  Long-term accounts receivable             207         643
  Long-term prepaid expenses            1,690         1,821
  Property and equipment           5,478         6,309
  Goodwill             16,696         16,441
  Intangible assets           40,571         46,203
  Deferred tax assets           18,708         19,224
  Total non-current assets            83,350         90,641
Total assets        $   445,581     $   447,689
Liabilities and Shareholders' Equity                      
Current liabilities:                      
  Trade and other payables       $   263,813     $   290,267
  Deferred lease inducements            276         243
  Deferred revenue            11,321         10,627
  Income taxes payable            779         2,279
  Total current liabilities            276,189         303,416
Non-current liabilities:                      
  Deferred lease inducements            498         648
  Deferred revenue            3,991         3,307
  Total non-current liabilities            4,489         3,955
Total liabilities            280,678         307,371
Shareholders' equity:                      
  Capital stock           26,728         26,548
  Contributed surplus            2,907          3,274
  Retained earnings            136,567         111,689
  Accumulated other comprehensive loss            (1,299)         (1,193)
  Total shareholders' equity            164,903         140,318
Total liabilities and shareholders' equity        $   445,581     $   447,689
                       

SOFTCHOICE CORPORATION
Consolidated Statements of Comprehensive Income
(In thousands of U.S. dollars, except per share information)

Years ended December 31, 2012 and 2011

                     
            2012        2011
Net sales        $   1,065,620     $ 999,400
Cost of sales            858,304        810,518
Gross profit            207,316        188,882
Expenses:                    
  Selling and marketing             119,543        102,434
  Administrative            47,225        45,680
            166,768         148,114
Income from operations            40,548        40,768
Finance costs             528        6,169
Finance income             (1,289)        (82)
Other income           (232)        (119)
Other expense             96        673
            (897)        6,641
Income before income taxes            41,445        34,127
Income tax expense           13,789        12,007
Net income            27,656        22,120
Other comprehensive loss:                    
  Foreign currency translation adjustment            (106)        (51)
Total comprehensive income          $   27,550     $  22,069
Net earnings per common share:                    
  Basic         $   1.40     $ 1.12
  Diluted           1.37       1.11
                       

SOFTCHOICE CORPORATION
Consolidated Statements of Changes in Equity
(In thousands of U.S. dollars)

Years ended December 31, 2012 and 2011

                                   
                      Accumulated            
                      other             Total
    Number     Capital     Contributed     comprehensive      Retained      shareholders'
2012    of shares      stock       surplus      loss      earnings      equity
Balance, January 1, 2012    19,837,211   $ 26,548   $ 3,274   $ (1,193)   $ 111,689   $ 140,318
Total comprehensive income (loss):                                  
  Net income    -      -      -      -      27,656      27,656
  Other comprehensive loss:                                  
    Foreign currency translation adjustment    -      -      -      (106)      -      (106)
  Total comprehensive income (loss)    -      -      -      (106)      27,656      27,550
Transactions with shareholders recorded directly in equity:                                  
  Share options exercised    40,151      516      (194)      -      -      322
  Share-based compensation    -      -      2,091      -      -      2,091
  Repurchase of common shares     (219,600)       (336)      (2,264)      -      -      (2,600)
  Dividends declared      -      -      -      -     (2,778)      (2,778)
    (179,449)      180      (367)      -      (2,778)      (2,965)
Balance, December 31, 2012    19,657,762   $ 26,728   $ 2,907   $ (1,299)   $ 136,567   $ 164,903
                                   
                                   
                          Accumulated        
                      other             Total
    Number      Capital      Contributed     comprehensive      Retained     shareholders'
2011    of shares      stock      surplus     loss      earnings      equity
Balance, January 1, 2011    19,780,039   $ 26,016   $ 2,054   $ (1,142)   $ 89,569   $ 116,497
Total comprehensive income (loss):                                  
  Net income    -      -      -      -      22,120      22,120
  Other comprehensive loss:                                  
    Foreign currency translation adjustment    -      -      -      (51)      -      (51)
  Total comprehensive income (loss)    -      -      -      (51)      22,120      22,069
Transactions with shareholders recorded directly in equity:                                  
  Share options exercised    8,599      108      (41)      -      -      67
  Share-based compensation    -      -      1,722      -      -      1,722
  Repurchase of common shares     (4,000)       (37)      -      -      -      (37)
  Deferred share units exercised    52,573      461      (461)      -      -      -
    57,172      532      1,220      -      -      1,752
Balance, December 31, 2011    19,837,211   $ 26,548   $ 3,274   $ (1,193)   $ 111,689   $ 140,318
                                   

SOFTCHOICE CORPORATION
Consolidated Statements of Cash Flows
(In thousands of U.S. dollars)

Years ended December 31, 2012 and 2011

                       
            2012          2011
Cash provided by (used in):                      
Operating activities:                      
  Net income        $   27,656     $   22,120
  Adjustments for:                      
    Amortization of intangible assets            8,663          5,989
    Depreciation of property and equipment            3,124          3,018
    Share-based compensation            2,091          1,722
    Income tax expense            13,789          12,007
    Unrealized foreign currency (gain) loss            (1,086)          648
    Loss on disposal of intangible assets and property and equipment            167          16
    Interest expense on financial liabilities            52          1,840
    Amortization of deferred financing costs            -          1,844
                54,456           49,204
  Change in non-cash operating working capital            2,951          4,477
            57,407          53,681
  Interest paid            (53)          (1,832)
  Income taxes paid            (13,252)          (13,259)
  Cash provided by operating activities            44,102          38,590
Financing activities:                      
  Repayment of loans and borrowings            -          (12,784)
  Proceeds from issuance of common shares            322          67
  Dividends paid to shareholders            (2,778)          -
  Repurchase of common shares            (2,600)          (37)
  Cash used in financing activities            (5,056)          (12,754)
Investing activities:                      
  Purchase of property and equipment            (2,346)          (2,280)
  Purchase of intangible assets            (2,563)          (2,620)
  Restricted cash            -          500
  Acquisition of UNIS LUMIN Inc.           -          (23,941)
  Cash used in investing activities            (4,909)          (28,341)
Increase (decrease) in cash            34,137          (2,505)
Cash, beginning of year            32,993          35,752
Effect of exchange rate fluctuations on cash held            745          (254)
Cash, end of year        $   67,875     $   32,993

SOURCE Softchoice Corporation

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
While many app developers are comfortable building apps for the smartphone, there is a whole new world out there. In his session at @ThingsExpo, Narayan Sainaney, Co-founder and CTO of Mojio, will discuss how the business case for connected car apps is growing and, with open platform companies having already done the heavy lifting, there really is no barrier to entry.
As more intelligent IoT applications shift into gear, they’re merging into the ever-increasing traffic flow of the Internet. It won’t be long before we experience bottlenecks, as IoT traffic peaks during rush hours. Organizations that are unprepared will find themselves by the side of the road unable to cross back into the fast lane. As billions of new devices begin to communicate and exchange data – will your infrastructure be scalable enough to handle this new interconnected world?
SYS-CON Events announced today that Micron Technology, Inc., a global leader in advanced semiconductor systems, will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Micron’s broad portfolio of high-performance memory technologies – including DRAM, NAND and NOR Flash – is the basis for solid state drives, modules, multichip packages and other system solutions. Backed by more than 35 years of technology leadership, Micron's memory solutions enable the world's most innovative computing, consumer,...
SYS-CON Events announced today that Pythian, a global IT services company specializing in helping companies leverage disruptive technologies to optimize revenue-generating systems, has been named “Bronze Sponsor” of SYS-CON's 17th Cloud Expo, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Founded in 1997, Pythian is a global IT services company that helps companies compete by adopting disruptive technologies such as cloud, Big Data, advanced analytics, and DevOps to advance innovation and increase agility. Specializing in designing, imple...
SYS-CON Events announced today that HPM Networks will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. For 20 years, HPM Networks has been integrating technology solutions that solve complex business challenges. HPM Networks has designed solutions for both SMB and enterprise customers throughout the San Francisco Bay Area.
Consumer IoT applications provide data about the user that just doesn’t exist in traditional PC or mobile web applications. This rich data, or “context,” enables the highly personalized consumer experiences that characterize many consumer IoT apps. This same data is also providing brands with unprecedented insight into how their connected products are being used, while, at the same time, powering highly targeted engagement and marketing opportunities. In his session at @ThingsExpo, Nathan Treloar, President and COO of Bebaio, will explore examples of brands transforming their businesses by t...
Through WebRTC, audio and video communications are being embedded more easily than ever into applications, helping carriers, enterprises and independent software vendors deliver greater functionality to their end users. With today’s business world increasingly focused on outcomes, users’ growing calls for ease of use, and businesses craving smarter, tighter integration, what’s the next step in delivering a richer, more immersive experience? That richer, more fully integrated experience comes about through a Communications Platform as a Service which allows for messaging, screen sharing, video...
With the proliferation of connected devices underpinning new Internet of Things systems, Brandon Schulz, Director of Luxoft IoT – Retail, will be looking at the transformation of the retail customer experience in brick and mortar stores in his session at @ThingsExpo. Questions he will address include: Will beacons drop to the wayside like QR codes, or be a proximity-based profit driver? How will the customer experience change in stores of all types when everything can be instrumented and analyzed? As an area of investment, how might a retail company move towards an innovation methodolo...
The Internet of Things (IoT) is about the digitization of physical assets including sensors, devices, machines, gateways, and the network. It creates possibilities for significant value creation and new revenue generating business models via data democratization and ubiquitous analytics across IoT networks. The explosion of data in all forms in IoT requires a more robust and broader lens in order to enable smarter timely actions and better outcomes. Business operations become the key driver of IoT applications and projects. Business operations, IT, and data scientists need advanced analytics t...
A producer of the first smartphones and tablets, presenter Lee M. Williams will talk about how he is now applying his experience in mobile technology to the design and development of the next generation of Environmental and Sustainability Services at ETwater. In his session at @ThingsExpo, Lee Williams, COO of ETwater, will talk about how he is now applying his experience in mobile technology to the design and development of the next generation of Environmental and Sustainability Services at ETwater.
WebRTC has had a real tough three or four years, and so have those working with it. Only a few short years ago, the development world were excited about WebRTC and proclaiming how awesome it was. You might have played with the technology a couple of years ago, only to find the extra infrastructure requirements were painful to implement and poorly documented. This probably left a bitter taste in your mouth, especially when things went wrong.
SYS-CON Events announced today that IceWarp will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. IceWarp, the leader of cloud and on-premise messaging, delivers secured email, chat, documents, conferencing and collaboration to today's mobile workforce, all in one unified interface
As more and more data is generated from a variety of connected devices, the need to get insights from this data and predict future behavior and trends is increasingly essential for businesses. Real-time stream processing is needed in a variety of different industries such as Manufacturing, Oil and Gas, Automobile, Finance, Online Retail, Smart Grids, and Healthcare. Azure Stream Analytics is a fully managed distributed stream computation service that provides low latency, scalable processing of streaming data in the cloud with an enterprise grade SLA. It features built-in integration with Azur...
Too often with compelling new technologies market participants become overly enamored with that attractiveness of the technology and neglect underlying business drivers. This tendency, what some call the “newest shiny object syndrome,” is understandable given that virtually all of us are heavily engaged in technology. But it is also mistaken. Without concrete business cases driving its deployment, IoT, like many other technologies before it, will fade into obscurity.
Akana has announced the availability of the new Akana Healthcare Solution. The API-driven solution helps healthcare organizations accelerate their transition to being secure, digitally interoperable businesses. It leverages the Health Level Seven International Fast Healthcare Interoperability Resources (HL7 FHIR) standard to enable broader business use of medical data. Akana developed the Healthcare Solution in response to healthcare businesses that want to increase electronic, multi-device access to health records while reducing operating costs and complying with government regulations.
For IoT to grow as quickly as analyst firms’ project, a lot is going to fall on developers to quickly bring applications to market. But the lack of a standard development platform threatens to slow growth and make application development more time consuming and costly, much like we’ve seen in the mobile space. In his session at @ThingsExpo, Mike Weiner, Product Manager of the Omega DevCloud with KORE Telematics Inc., discussed the evolving requirements for developers as IoT matures and conducted a live demonstration of how quickly application development can happen when the need to comply wit...
The Internet of Everything (IoE) brings together people, process, data and things to make networked connections more relevant and valuable than ever before – transforming information into knowledge and knowledge into wisdom. IoE creates new capabilities, richer experiences, and unprecedented opportunities to improve business and government operations, decision making and mission support capabilities.
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at @ThingsExpo, James Kirkland, Red Hat's Chief Architect for the Internet of Things and Intelligent Systems, described how to revolutionize your archit...
MuleSoft has announced the findings of its 2015 Connectivity Benchmark Report on the adoption and business impact of APIs. The findings suggest traditional businesses are quickly evolving into "composable enterprises" built out of hundreds of connected software services, applications and devices. Most are embracing the Internet of Things (IoT) and microservices technologies like Docker. A majority are integrating wearables, like smart watches, and more than half plan to generate revenue with APIs within the next year.
Growth hacking is common for startups to make unheard-of progress in building their business. Career Hacks can help Geek Girls and those who support them (yes, that's you too, Dad!) to excel in this typically male-dominated world. Get ready to learn the facts: Is there a bias against women in the tech / developer communities? Why are women 50% of the workforce, but hold only 24% of the STEM or IT positions? Some beginnings of what to do about it! In her Opening Keynote at 16th Cloud Expo, Sandy Carter, IBM General Manager Cloud Ecosystem and Developers, and a Social Business Evangelist, d...