PCM, Inc. reported unaudited consolidated earnings results for the first quarter ended March 31, 2018. For the quarter, the company reported net sales were $542,832,000 compared to $522,760,000 a year ago. Operating profit was $6,242,000 compared to $4,711,000 a year ago. Income before income taxes was $3,955,000 compared to $3,196,000 a year ago. Net income was $2,811,000 or $0.23 per diluted share compared to $4,172,000 or $0.31 per diluted share a year ago. EBITDA was $10,022,000 compared to $8,371,000 a year ago. Adjusted EBITDA was $11,016,000 compared to $9,696,000 a year ago. Non-GAAP net income was $4,150,000 or $0.34 per diluted share compared to $3,606,000 or $0.27 per diluted share a year ago. Net cash provided by operating activities was $39,471,000 compared to net cash used in operating activities of $13,524,000 a year ago. Purchases of property and equipment were $1,479,000 compared to $6,033,000 a year ago. Consolidated net sales growth primarily resulted from an $18.1 million increase in sales made in the company's new United Kingdom segment, but was negatively impacted by an $18.0 million increase in sales reported on a net basis.

The company tracking to a record year in sales, gross profit and adjusted EPS for 2018, as the company begin reaping the benefits of the company's 2017 investments in security, cloud, hybrid data center and managed services. The company reiterated the company's 2018 guidance for non-GAAP earnings per share to be in a range of $2.00 - $2.10 per share, including the results of the company's UK segment, which the company anticipates being profitable for the full year of 2018. Giving effect to the new revenue standard, which is being reflected in the company's guidance for the first time, and that some of the company's high growing areas of the business such as security are now reported on a net basis, the company expects full year 2018 growth will be approximately 4%. The company also raising the company's gross margin guidance from approximately 15% to a range of 15.0% - 15.5% for the full year.

Further, given the seasonality of the company's state, local and educational component of the company's public sector business, and given the historic strength of netted down revenue in the second quarter, among other factors, the company expects revenue growth in the third and fourth quarter of 2018 to exceed that of the second quarter.