ScanSource, Inc. (NASDAQ: SCSC) stock rose 1.65% and continued its bullish momentum even on August 28th, 2018 pre market session after the company posted mixed results for the fourth quarter 2018. Non-GAAP net income for the fourth quarter of FY18 increased 15% to $19.9 million, as compared to $17.3 million, for the prior-year quarter.
Further, throughout the year 2018 the company executed very well on the six key opportunities for growth. First, strong demand from mobile computing solutions continued across all geographies reflecting an operating system transition to Android and a big market refresh opportunity. Year-over-year mobile computing solutions grew double-digits and were a key driver for the organic growth in the worldwide barcode, networking and security segment.
Secondly, SCSC achieved double-digit growth in video surveillance from opportunities to provide customized programs and offerings driven by the e-rate [ph] funding for education. This business also included strong performance from the networking vendors. The networking and security business in North America had a record sales quarter. Third, for POS Portal SCSC added a new large customer in the contract deployment business this quarter. The company’s fourth growth area is the communications channel opportunity that SCSC described last March when the company announced an expanded relationship with Mitel for their premise based products in United States. This opportunity continued to grow in the fourth quarter. Fifth growth opportunity is continuing to grow Intelisys the recurring revenue business. The company had another record quarter for Intelisys up 26% year-over-year growth with the fastest growth coming from the excellent line card of cloud suppliers. Sixth opportunity, the company’s Network1 business in Brazil also had strong performance across all of the technologies.
SCSC in the fourth quarter of FY 18 has reported the adjusted earnings per share of 77 cents, missing the analysts’ estimates for the adjusted earnings per share of 78 cents. The company had reported the adjusted revenue growth of 8 percent to $993.85 million in the fourth quarter of FY 18, beating the analysts’ estimates for revenue by 0.66%. The revenue grew due to sales growth in both Worldwide segments. Organic sales growth, which excludes the impact from foreign currency translation and a recent acquisition, is of 5.0% in the fourth quarter. Non-GAAP operating income increased 11% to $30.8 million, primarily due to higher net sales and the addition of the POS Portal acquisition
For the first quarter of FY19, SCSC expects net sales to range from $950 million to $1.01 billion, diluted earnings per share to range from $0.56 to $0.62 per share and non-GAAP diluted earnings per share to range from $0.83 to $0.89 per share.