With Insight Enterprises around, the end of your technology woes could be in sight. The company distributes computer hardware and software and provides IT services for businesses, schools, and government agencies and departments. Insight offers thousands of products from major manufacturers (including Hewlett-Packard, IBM, and Cisco), and it provides networking and communications services through subsidiaries Insight Networking in the US and UK-based MINX. The company uses direct telesales, field sales agents, and an e-commerce site to reach its clients in North America and about 200 other countries across Europe, the Middle East, Africa, and the Asia/Pacific region.
Insight rings up more than two-thirds of its sales in North America. Second in importance is Europe, the Middle East and Africa (EMEA), which contributes almost 30%. The Asia-Pacific (APAC) region accounts for the rest.
Hardware accounted for more than half of the company’s 2013 revenues; software, 44%.
In 2013 Insight purchased products and software from 4,200 partners.
Sales and Marketing
Microsoft accounted for 30% of Insight’s revenues in 2013; HP, 14%; and Cisco, 11%
The company's advertising expenses were $29.4 million, $27.6 million and $26.4 million for the years 2013, 2012 and 2011, respectively.
Insight’s revenues dropped by 3% in 2013 as the result of decreased revenues in North America (down 4% due to hardware and software sales decreases) and a 3% drop in APAC sales due to effects of foreign currency movements.
Although the company’s net income decreased by 23% due to lower sales coupled with the absence of a gain on bargain purchase and higher severance and restructuring expenses (which doubled in 2013) and a foreign currency exchange loss (compared to a gain in the previous year) offset by lower selling, administrative, and income tax expenses.
Net cash provided by operating activities in 2013 was $76.1 million (up from $67.4 million in 2012) driven by a decrease in accounts payable of $187 million and higher deferred revenues, offset by lower net income and the absence of a gain on bargain purchase.
Insight is growing at home and abroad by upgrading its technology, expanding its product line, entering new markets, and making acquisitions.
In 2014 the company announced plans to migrate its APAC operations to the same IT system platform it uses in North America. During 2013 Insight deployed all countries in its EMEA segment onto a separate, single new IT system platform that gives them the capability to expand their sales of hardware and services (in addition to software) to clients in that region. That year it also announced the expansion of its InsightCloud Solutions Center, with the addition of Cloud Business Provisioning, powered by dinCloud.