CDW Beats 1Q Expectations, Sets Revenue Record

CDW Computer Centers

The results compare with net income of $43 million, or 48 cents per share, for the year-ago quarter.

The Vernon Hills-based direct marketer reported revenue of $1.06 billion, setting a company record for quarterly sales. CDW reported $995 million for the same quarter last year.

"Our second-quarter results were exceptional, given the continuing challenges in the market," said John Edwardson, CDW's chairman and CEO, in a statement.

CDW's public sector sales were $217.3 million, a 26 percent increase over the year-ago quarter. Corporate sales rose 2 percent to $839.5 million for the same period. Growth rates exceeded 12 percent in the software, video and input device product categories, according to the company.

CDW expects third-quarter sales of between $1.08 billion and $1.13 billion, and earnings per share of between 50 cents and 53 cents, Edwardson said. Thomson Financial/First Call projects earnings of 52 cents per share.

"With regard to third-quarter projections, we continue to be cautious regarding the economy. We anticipate modest sales growth on a year-over-year basis for the corporate sector, and strong double-digit sales growth for the public sector," he said.

CDW shares closed at $45.55, down $1.37, or 3 percent, for the quarter.