CEO Mark Marron pointed to a challenging year-over-year comparison but highlighted the company's record sales and a robust pipeline of booked orders. While product shipment delays caused by the ongoing memory chip shortage impacted immediate results, the managed services segment hit a $50 million revenue quarter for the first time. This performance underscores a shift toward a services-led model, which the company views as a critical long-term growth driver.
In section Releases
ePlus Reports Mixed First Quarter Results Amid Chip Shortages
ePlus reported a modest 1% increase in first-quarter net sales to $649.1 million, even as the company navigated supply chain hurdles and extended lead times for hardware. Despite reaching a milestone in managed services revenue, the firm saw a decline in net earnings from continuing operations to $30.3 million.
The company ended the quarter with $449 million in cash, providing a buffer for potential acquisitions and shareholder returns. Reflecting this financial stability, the Board of Directors declared a quarterly dividend of $0.27 per share and authorized a new stock repurchase program for up to 1.5 million shares. Looking ahead, management reiterated its fiscal 2027 guidance, projecting mid-single-digit growth for net sales and adjusted EBITDA, provided that market conditions remain stable.
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