About PC Connection, Inc.
You won't see a store on every street corner, but PC Connection is just a click away. Doing business as Connection, the company is a leading direct marketer of computer products and IT solutions in the US, selling hardware, software, networking devices, services, and peripherals. It offers more than 425,000 items from manufacturers such as Apple, HP, and Microsoft as well as a range of IT services. Through its websites, catalogs, and direct sales force, Connection targets small and midsized businesses, large corporations, government agencies, and educational institutions, as well as individual consumers. The company dropped "PC" from its tradestyle in 2016 to reflect its mission of connecting people to technology and its range of products.
Connection provides comprehensive IT solutions to companies and organizations, including the design, enablement, management, and servicing of their IT hardware and software suites. Products include computers, data center solutions, software, peripheral equipment, networking, and more.
The company provides these services through three reportable segments based on client size. The largest of the three segments, Business Solutions serves SMEs and accounts for more than 40% of sales. Enterprise Solutions, provides services to large corporates and generates roughly 40% of total sales and the Public Sector Solutions segment targets federal governments, higher education, grade schools, and local governments; it brings in the other 20% of sales.
In terms of what's selling, Notebooks/Mobility products account for about 30% of sales. Desktops, Software, Servers/Storage, Net/Com Products, Display and Sound, Accessories account for about 10% each. Other Hardware/Services bring in the rest.
Connection operates through almost 10 locations in addition to its about 285,000-square-foot distribution and fulfillment complex in Wilmington, Ohio, and distribution centers in Kenne and Merrimack, New Hampshire; Marlborough, Massachusetts; Rockville, Maryland; Dakota Dunes, South Dakota; Boca Raton, Florida; and Itasca, Illinois. Connection is headquartered in Merrimack, New Hampshire.
Sales and Marketing
Connection connects with customers through direct marketing channels, including telemarketing and field sales, internet sales through its four e-commerce sites, and inbound telesales. The online retailer spends $19.4 million, $16.2 million, and $14.4 million for the years 2019, 2018, and 2017, respectively, on advertising.
Connection depends on a small number of suppliers and their adverse performance could impact on the company's position. Five vendors constitute about 95% of the company's product purchases, including Ingram, more than 20%, Synnex nearly 15%, Dell, HP Inc., and Tech Data comprised nearly 60%.
Three consecutive years of sales growth was interrupted in 2018, with PC Connection's sales falling 7% to $2.7 billion. The decrease was a result of new revenue recognition rules. Net income, however, enjoyed five uninterrupted years of growth.
In 2019, net sales increased by 4% to $2.8 billion primarily as a result of increased sales across all three of company's sales segments.
The company's net income for 2019 jumped 27% to $82.1 million which resulted from the increase in operating income in the current year.
PC Connection's cash on hand fell $1.6 million in 2019, ending the year at $90.1 million. The company's operations generated $36.6 million while its investing activities used $25.7 million and its financing used $12.6 million. PC Connection's main cash uses in 2019 were for equipment purchases, share repurchases, and dividends.
PC Connection believes it becomes its customers' IT provider of choice by providing innovative IT solutions which meet their needs of increased productivity, mobility, virtualization, and security in a continually evolving IT environment. It provides enhanced value by assisting them in cost-effectively maximizing business opportunities provided by new technologies and advanced service solutions. The key elements of its business strategies include: Providing consistent customer service before, during, and after the sale; Offering a broad product selection at competitive prices; Simplifying technology product procurement for corporate customers; Offering targeted IT solutions; Maintaining a strong brand name and customer awareness; and Maintaining long-standing vendor relationships.
The company's growth strategies are designed to increase revenues by maximizing operational efficiencies while offering innovative products and value added service offerings, increasing penetration of our existing customers, and expanding its customer base. PC Connection's six key elements of growth are: Expanding hardware and software offerings; Expanding IT solution services offerings; Targeting customer segments; Increasing productivity of our sales representatives; Migrating to cloud-based solutions for our customers; and Pursuing strategic acquisitions and alliances.
730 Milford Rd
Merrimack, NH 03054-4612
Phone: 1 (603) 683-2000
Employer Type: Publicly Owned
Stock Symbol: CNXN
Stock Exchange: , NASDAQ
Vice Chairman: Joseph A. Baute
Chairman and Chief Administrative Officer: Patricia Gallup
President and CEO: Timothy J. McGrath
Employees (This Location): 10
Employees (All Locations): 2,609
Laguna Niguel, CA
Dakota Dunes, SD