PCM, Inc. reported unaudited consolidated earnings results for the first quarter ended March 31, 2017. For the quarter the company reported net sales were $524,399,000 compared to $498,029,000 a year ago. Operating profit was $4,473,000 compared to $1,519,000 a year ago. Income before income taxes was $2,958,000 compared to $45,000 a year ago. Net income was $4,027,000 or $0.30 basic and diluted per share compared to $156,000 or $0.01 basic and diluted per share a year ago. EBITDA was $8,133,000 compared to $5,591,000 a year ago. Adjusted EBITDA was $9,610,000 compared to $7,636,000 a year ago. Non-GAAP net income was $3,550,000 or $0.26 diluted per share compared to $2,432,000 or $0.20 diluted per share a year ago. Net cash used in operating activities was $13,524,000 compared to net cash provided by operating activities of $44,126,000 a year ago. Purchases of property and equipment were $6,033,000 compared to $785,000 a year ago.

The company expects adjusted EPS, which excludes the UK investment, in the range of $0.44 to $0.49 on net sales of $580 million to $600 million, which continues to exclude sales under the transferred customer. For the year, the company continues to believe that it will deliver net sales of $2.34 billion to $2.38 billion and adjusted EPS of $2.00 to $2.15, with adjusted EPS ramping sequentially for each of the quarters of this year. The company raised gross margin guidance from a range of 13.75% to 14.25% to a range of 14.0% to 14.5% for each of the remaining quarters in 2017. The company expects that annual effective tax rate to be approximately 35.6%. Further, the company's current plan is to spend approximately $4.0 million launching its UK business in 2017, with some offset generated by incremental revenue and gross profit, and believe that its UK operations will be profitable and accretive in 2018.