A strong performance from EMEA and APAC helped Insight Enterprises to raise sales nine per cent to $1.4bn in Q2.
But the US reseller giant declared a massive loss for the three months ended June 30, by writing off all the goodwill on its North America books. That amounts to a non-cash goodwill impairment charge of $313.9m, $201.2m net of tax - and a GAAP loss of $174m. We assume that much of this goodwill arises from the $287m acquisition of Software Spectrum, the US reseller bought in 2006.
Net sales rose four per cent to $957m in North America, with contributions from new acquisition Calence "more than compensating for" declines in legacy hardware sales.
EMEA produced "very strong" results, with net sales up 15 per cent to $382.3m and profit up 25 per cent. The quarter also saw the UK hardware business returns to growth, "reflecting actions taken late in the first quarter. During the quarter the company bought a UK networking reseller called MINX, to get its mitts on a coveted top drawer Cisco accreditation.
The much smaller APAC operations also had a gangbuster quarter, more than doubling sales and net earnings
Insight is maintaining full-year outlook of net income of $1.50-$1.60 a share. That's not taking into account one-offs such as goodwill impairment charges, restructuring and so on.