PC Connection Expects 1Q Loss

PC Connection

The Merrimack-based direct marketer's commercial sales were flat compared with the fourth quarter, but federal government sales are expected to decrease by $32 million vs. the fourth quarter, more than previous years' historical patterns, said PC Connection CEO Ken Koppel in a release.

Thomson Financial/First Call had projected a profit of 6 cents per share.

Before special charges, PC Connection expects a loss between 4 cents and 6 cents per share on sales in the range of $235 million to $240 million.

PC Connection also said it plans to buy electronic procurement company MoreDirect for about $21 million in cash.

MoreDirect's system enables customers to evaluate, purchase and track IT products over the Internet. MoreDirect will keep its name and operate as a wholly owned subsidiary of PC Connection from its Boca Raton, Fla., location.

"The purchase of MoreDirect is consistent with PC Connection's strategy of acquiring businesses with similar corporate cultures which add new customers and management talent, and are immediately accretive to our earnings and key operating ratios," Koppel said in a statement.