ScanSource shares fell 10% on news of a 22% sales dip in Q4, primarily due to the impact of the Covid-19 pandemic which resulted in lower demand from its mainly SMB customers.
The Intelisys master agency business saw net sales up 15% year-over-year. Meanwhile, operating income decreased to $113.4m, and non-GAAP operating income decreased to $8.2m.
"We've taken the necessary actions to strengthen our balance sheet, improve our cost structure, and continue to drive investments in our higher-margin, VAR cloud platform and agency business," said CEO Mike Baur.
Commenting on positive trends ScanSource's VAR business John Eldh, Chief Revenue Officer, said: “Our top selling product categories included mobile computing, mobile printing, networking, video surveillance cameras and unified communications hardware, software and services.
"The new normal is driving more mobile use cases such as applications in e-commerce, delivery, curbside pickup and warehouse expansion.”