"Throughout the first quarter, we saw the continuation of a weak economic backdrop leading our customers to exercise greater caution and selectivity with their short-term IT investment plans. Sales of endpoint devices was lower than anticipated across our customer base. While we saw good overall growth in software, security, and networking solutions, it was not enough to offset the contraction in demand, which resulted in our first quarter performance being below our expectations. We expect first quarter net sales to be between 7% and 9% lower than the same quarter last year," said Tim McGrath, President, and Chief Executive Officer. "To support the shift in mix from endpoint devices, we continued to invest in our strategic initiatives to deliver higher value solutions and services. We anticipate our Q1 diluted earnings per share to be between $0.53 and $0.55. We continue to execute the cost reduction plans we announced last quarter, and we are planning to take additional cost reduction measures to further reduce operating expenses in 2023," said Tom Baker, Chief Financial Officer. "We expect that our strong balance sheet, loyal customer base, and dedicated workforce will enable us to grow sequentially throughout the balance of the year and increase long-term shareholder value," added Tim McGrath.
Published first on TheFly
