CDW reported quarterly revenue yesterday, with sales dropping over five per cent year on year.
But the stock exchange filing did not tell the whole story, with CEO Christine Leahy opening up on the quarter during an earnings call with investors. We've picked out the key information here.
The UK business grew
The wider CDW business may have seen sales decline in two of the three regions it operates, but the UK was a shining light amid a difficult quarter.
CDW does not break out UK figures, instead lumping it in with the Canadian business. Together the pair reported a sales drop of 8.4 per cent.
But on the earnings call Leahy said that the UK division had in fact reported growth.
"The UK team delivered high single digit growth in constant currency with strong public sector demand, driven by healthcare customers and more muted corporate customer demand," she said.
The Canadian unit saw revenue decrease double digits in constant currency.
The quarter started well
Leahy said that the first month of the quarter (April) had actually been positive, with a backlog in demand driven by the shift to remote working lagging over into the new quarter.
"For the quarte,r net sales performance varied by month and by customer end market," she said.
"As we shared on our last earnings call, we entered April with a healthy backlog of remote workforce enablement solution, which contributed to strong performance in April.
"As the quarter progressed, for some of our customer end markets projects were postponed and demand declined, as the economic toll of the crisis impacted customer spend. In other customer end markets, IT investment was prioritised and remained healthy."
M&A is still on the cards
Leahy touts the prospective of further acquisitions on most earnings call and this one was no different.
CDW announced the acquisition of cloud and digital transformation firm IGNW in July and said that further deals could be in the way.
"M&A is an important part of our capital allocation strategy to expand CDWs strategic capabilities," Leahy said.
"During our 35 plus year history, CDW had a successful track record of evolving customer needs in the IT industry, in part through acquisition.
"We absolutely will continue to look at potential targets. And we're very active in inbounds, we're very active in outbound."
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