ePlus(PLUS)2024-05-22 22:03Revenue Breakdown - For the year ended March 31, 2024, the technology business accounted for 98% of net sales, with 85% from the product segment, 7% from professional services, and 6% from managed services[24]. - Revenue by customer end market includes 25% from telecommunications, media and entertainment, 17% from technology, 15% from state and local government and educational institutions, 13% from healthcare, and 11% from financial services[22]. - Sales to Verizon Communications Inc. represented 19%, 22%, and 24% of net sales for the years ended March 31, 2024, 2023, and 2022, respectively[22]. - The financing business segment accounted for 2% of net sales and 16% of operating income for the year ended March 31, 2024[24]. - For the year ended March 31, 2024, the three largest distributors accounted for over 25% of product segment net sales[71]. Market Trends and Strategies - The company focuses on multi-cloud strategies to assist customers in aligning cloud strategy with business objectives and optimizing cloud deployments for cost and security[25]. - The company has identified increasing sophistication and incidences of IT security breaches as a significant market trend, necessitating enhanced cybersecurity measures[26]. - The company aims to address the lack of sufficient internal IT resources at mid-sized and large enterprises, which is driving demand for third-party services[29][31]. - The company anticipates continued competition from local, regional, national, and international firms, as well as from disruptive technologies impacting the IT solutions market[32][33]. - The company recognizes AI as a potentially transformational force that will significantly impact product offerings and business operations in the long run[70]. Investment and Growth - The company is investing in engineering and technology resources to stay at the forefront of technology trends, particularly in cloud and managed services[20]. - The company achieved a compound annual growth rate of 8.8% in net sales and 8.9% in consolidated gross profit from fiscal year 2020 to fiscal year 2024[54]. - The company has successfully integrated nearly 30 acquisitions since 1997, focusing on broadening product offerings and geographic reach[51]. - The company aims to expand its geographic footprint and improve technology delivery capabilities in international markets[60]. Employee Development and Workforce - The employee count increased by 20.3% from March 31, 2020, to March 31, 2024, with 82.2% of the increase in customer-facing roles[55]. - The company focuses on recruiting and developing employees, offering professional development programs and competitive compensation[61]. - The sales and marketing department saw an increase of 75 employees, while professional services added 66 employees compared to the previous year[79]. - As of March 31, 2024, the company employed a total of 1,900 employees, an increase of 146 from the previous year[76][79]. - The GRIT program has graduated over 300 participants since its inception, focusing on introducing middle school girls to technology careers[78]. Technology and Solutions - The technology solutions offered leverage partnerships with leading firms such as AWS, Cisco, and Microsoft, among others[18]. - The managed services segment includes offerings such as AWS, Microsoft Azure, and Managed Security Services, enhancing customer experience through integrated solutions[59]. - The company has a strategic focus on cloud solutions, leveraging partnerships with leading vendors to assist customers in their cloud journey[48]. - The company provides enhanced financing solutions that automate the IT procurement process, reducing costs for customers[42]. Risk Management - The company has implemented conservative underwriting policies and disciplined credit approval processes to manage risk[72]. - The company has seen an increase in interest rate risks and foreign currency risks due to market volatility and inflation[313]. - The company has foreign currency exposure primarily in British Pounds, Euros, and Indian Rupees, but believes it will not materially affect its financial position[315][316]. - The company has adopted an Employee Stock Purchase Plan in 2022 to enhance employee relations and retention[80]. Operational Efficiencies - The company emphasizes operational efficiencies through investments in technology infrastructure and process re-engineering[62].