ScanSource Lowers 2Q Revenue Forecast

Revenue is unlikely to exceed the middle of its previously announced range of $235 million to $255 million, and sales could be slightly below $235 million, said Mike Baur, president and CEO of the Greenville-based distributor.

Earnings per share should be between 85 cents and 95 cents per share for the quarter ended Dec. 31, the company said.

Within the past three weeks, distributors Ingram Micro and Tech Data, as well as CDW Computer Centers, have reduced their revenue forecasts after sales unexpectedly softened in November.

"Given the fact that so many technology distribution companies have been reporting softness in their markets, we thought it would be prudent to provide an update on the status of our business," Baur said in a statement. "Although we have been experiencing the same slowing sales trends in our markets beginning in late November and continuing through December, we are comfortable that margins are solid and expenses are under control, so we can reaffirm our earnings per share guidance for the December quarter."

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The company expects to report final results around Jan. 23, 2003. ScanSource shares were trading at $64.54 Thursday afternoon, down 76 cents, or 1 cent per share.