6 unchanged sentences
Distribution Segment
−Removed: In our Distribution segment, which accounted for approximately 92% of our consolidated net sales and 83% of our consolidated gross profit during the year ended December 31, 2023, we distribute technology products from software developers, software vendors or original equipment manufacturers (“OEMs”) to resellers, and system integrators worldwide.
+Added: In our Distribution segment, which accounted for approximatel y 95 % of our consolidated net sales and 86% of our consolidated gross profit during the year ended December 31, 2024, we distribute technology products from software developers, software vendors or original equipment manufacturers (“OEMs”) to resellers, and system integrators worldwide.
We purchase software, maintenance/service agreements, networking/storage/security equipment and complementary products from our vendors and sell them to our reseller customers.
−Removed: The large majority of products we sell are “drop shipped” directly to the customers, which reduces physical handling by the Company and required investment in inventory.
+Added: The large majority of hardware products we sell are “drop shipped” directly to the customers, which reduces physical handling by the Company and required investment in inventory.
Generally, a vendor authorizes a limited number of companies to act as distributors of their product and sell their product to resellers.
−Removed: Our reseller customers include value-added resellers, or VARs, corporate resellers, government resellers, system integrators, direct marketers, and national IT superstores.
+Added: Our reseller customers include VARs, corporate resellers, government resellers, system integrators, direct marketers, and national IT superstores.
We combine our core strengths in customer service, marketing, distribution, credit and billing to allow our customers to achieve greater efficiencies in time to market in the IT channel in a cost-effective manner.
−Removed: While our Distribution business is characterized by low gross profit as a percentage of adjusted gross billings, or gross margin, and price competition, we have been able to operate profitably by leveraging an efficient and scalable business model with low capital investment requirements.
+Added: While our Distribution business is characterized by low gross profit as a percentage of gross billings, or gross billings margin, and price competition, we have been able to operate profitably by leveraging an efficient and scalable business model with low capital investment requirements.
The large majority of the products we sell are either digital products such as license authorizations, third party maintenance contracts, or hardware that is dropped shipped to the end customer directly by the vendor.
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We continually review the marketplace to identify new and emerging vendors and products to potentially add to our vendor partners.
−Removed: The Company operates a distribution facility in Eatontown, New Jersey and Dublin, Ireland.
+Added: The Company operates distribution facilities in Millersville, Maryland and Dublin, Ireland.
Solutions Segment
−Removed: We also provide comprehensive IT solutions directly to end users through our Solutions segment, which accounted for approximately 8% of our consolidated net sales and 17% of our consolidated gross profit during the year
−Removed: ended December 31, 2023.
+Added: We also provide comprehensive IT solutions directly to end users through our Solutions segment, which accounted for approximately 5 % of our consolidated net sales and 14% of our consolidated gross profit during the year ended December 31, 2024.
Products in this segment are acquired directly from OEMs, software developers or distributors and sold to end users.
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In 2020, we completed two acquisitions to add scale, broaden our geographic footprint, expand partner relationships and add cloud support capabilities.
−Removed: In 2022, we completed an acquisition that expanded our sales presence in the United Kingdom distribution operations.
−Removed: In 2023, we completed the acquisition of Data Solutions Holdings Limited (“Data Solutions”), which further expanded our geographic footprint and partner relationships in the United Kingdom and Ireland distribution operations.
+Added: In 2022, we completed an acquisition that expanded our sales presence in the United Kingdom software distribution markets.
+Added: In 2023, we completed the acquisition of Data Solutions Holdings Limited (“Data Solutions”), which further expanded our geographic footprint and partner relationships in the United Kingdom and Ireland software distribution markets.
+Added: In 2024, we completed the acquisition of Douglas Stewart Software & Services, LLC (“DSS”), which further strengthened our reach in the North American K-12 and higher education software distribution markets.
We plan to continue to evaluate acquisition opportunities as part of our overall capital allocation strategy and continuing growth plan.
An essential part of our ongoing operations and strategic growth plan in our Distribution segment is the continued recruitment of software vendors for which we become authorized distributors of their products.
−Removed: Through our Distribution segment, we sell a wide variety of technology products from a broad range of software vendors and manufacturers, such as Bluebeam Software, Flexera Software, Intel Software, Microsoft, Micro Focus, Mindjet, SmartBear Software, SolarWinds, Sophos, StorageCraft Technology, TechSmith, Trend Micro, Unitrends, Tintri and Extrahop.
+Added: Through our Distribution segme nt, we sell a wide variety of technology products from a broad range of software vendors and manufacturers, such as Bluebeam Software, Microsoft, Delinea, Micro Focus, SmartBear Software, SolarWinds, Sophos, TechSmith, Trend Micro, Unitrends, Tintri and Extrahop .
On a continuous basis, we screen new vendors and products for inclusion in our line card based on their features, quality, price, profit margins and current market trends.
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Our strategic growth plan is to expand our cloud offerings by leveraging these support services to other markets and products.
−Removed: For the year ended December 31, 2023, we had one vendor that accounted for 14% of our consolidated purchases and our largest five vendors generated approximately 40% of our consolidated purchases.
−Removed: For the year ended December 31, 2022, this same vendor accounted for 17% of our consolidated purchases.
+Added: For the year ended December 31, 2024, we had one vendor that accounted for 10% of our consolidated purchases and our largest five vendors generated approxim ately 29 % of our consolidated purchases.
+Added: For the year ended December 31, 2023, this same vendor accounted for 14% o f our consolidated purchases.
The loss of a key vendor or group of vendors could disrupt our product availability and otherwise have an adverse effect on the Company.
The Company predominantly sells third party software, software subscriptions, and maintenance.
−Removed: Sales of hardware and peripherals represented 6% of our adjusted gross billings in 2023 and 2022, respectively.
+Added: Sales of hardware and peripherals consistently represente d 6% of o ur gross billings in 2024 and 2023.
Our vendor and reseller partners are increasingly incorporating cloud and hybrid cloud products into their portfolios.
An essential part of our strategic growth plan is to provide value added services to our vendor partners and customers to enhance their ability to market these products.
−Removed: This includes maintaining infrastructure to facilitate licensing of cloud and SaaS products, providing technical support for cloud products, and providing integration and enablement
−Removed: We currently have the ability to provide support for these cloud services in North America, United Kingdom and Europe, and plan to continue to leverage these capabilities to provide cloud support services throughout our worldwide operations.
+Added: This includes maintaining infrastructure to facilitate licensing of cloud and SaaS products, providing technical support for cloud products, and providing integration and enablement services.
+Added: We currently have the ability to provide support for these cloud services in North America, the United Kingdom and Europe, and plan to continue to leverage these capabilities to provide cloud support services throughout our worldwide operations.
Marketing and Distribution
−Removed: We market products through creative marketing communications, including our web sites, local and on-line seminars, events, webinars, and social media.
+Added: We market products through creative marketing communications, including our web sites, local seminars, events, webinars, and social media.
We also use direct e-mail and printed material to introduce new products and upgrades, to cross-sell products to current customers, and to educate and inform existing and potential customers.
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As a result, an increasing proportion of our sales in 2024 were from VARs, driven by a continued focus on increasing sales to larger VARs with more than $1 million in annual sales.
−Removed: For the year ended December 31, 2023, the Company had two customers, both of whom are considered DMRs, that accounted for 20%, and 15%, respectively, of consolidated net sales and as of December 31, 2023, 15% and 6%, respectively, of total net accounts receivable.
−Removed: For the year ended December 31, 2022, these same two customers accounted for 21%, and 16%, respectively, of consolidated net sales and as of December 31, 2022, 16% and 18%, respectively, of total net accounts receivable.
+Added: For the year ended December 31, 2024, the Company had three c ustomers, all of which are considered DMRs, that accounted for 18%, 14% and 11%, respectively, of consolidated net sales and as of December 31, 2024, 12%, 6% and 19%, respectively, of total net accounts receivable.
+Added: For the year ended December 31, 2023, there were two customers that accounted for 20%, and 15%, respectively, of consolidated net sales and as of December 31, 2023, 15% and 6%, respectively, of total net accounts receivable.
Our top five customers accounted for 54% and 51% of consolidated net sales in 2024 and 2023, respectively.
The loss of a key customer or a group of customers could have an adverse effect on the Company.
−Removed: Net sales in Europe and the UK represented 19% and 14% of our consolidated net sales in 2023 and 2022, respectively.
+Added: Net sales in Europe and the United Kingdom represented 21 % and 19% of our consolidated net sales in 2024 and 2023, respectively.
Net sales to customers in Canada represented 6% and 7% of our consolidated net sales in 2024 and 2023, respectively.
12 unchanged sentences
Inventory management techniques, such as “drop shipping” allow the Company to offer a greater range of products without increased inventory requirements or cost of carrying inventory.
−Removed: Inventory levels may vary from period to period, due in part to increases or decreases in sales levels, the Company’s practice of making advance purchases when it deems the terms of such purchases to be attractive, and the
−Removed: addition of new vendor partners and products.
+Added: Inventory levels may vary from period to period, due in part to increases or decreases in sales levels, the Company’s practice of making advance purchases when it deems the terms of such purchases to be attractive, and the addition of new vendor partners and products.
From time to time, we may make advance payments to vendors to apply against future purchases from the vendor.
12 unchanged sentences
ARW), TD Synnex Corporation (NYSE:
−Removed: SNX) and Ingram Micro, as well as specialty distributors.
+Added: SNX) and Ingram Micro (NYSE:
+Added: INGM), as well as specialty distributors.
We believe we offer a compelling solution for emerging technology vendors seeking to establish the IT channel as a route to market, by offering broad distribution capabilities with more flexibility than some of our larger competitors.
12 unchanged sentences
The Company conducts its business under various trademarks and service marks including Climb Channel Solutions, Grey Matter, Climb Global Services and International Software Partners.
−Removed: The Company protects these
−Removed: trademarks and service marks and believes that they have significant value to us and are important factors in our marketing programs.
+Added: The Company protects these trademarks and service marks and believes that they have significant value to us and are important factors in our marketing programs.
We have registered and maintained Internet domain names, including “climbglobalsolutions.com”.
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As part of our compensation philosophy, we believe that we must offer and maintain market competitive compensation and benefit programs for our employees in order to attract and retain superior talent.
−Removed: In addition to
−Removed: competitive base wages, additional programs include the 2021 Omnibus Incentive Plan, a company matched 401(k) Plan, healthcare and insurance benefits, flexible spending accounts, paid time off and employee assistance programs.
+Added: In addition to competitive base wages, additional programs include the 2021 Omnibus Incentive Plan, a company matched 401(k) Plan, healthcare and insurance benefits, flexible spending accounts, paid time off and employee assistance programs.
Diversity and Inclusion
4 unchanged sentences
We have operations throughout North America and Europe.
−Removed: Our website address is www.climbglobalsolutions.com, and the other web sites maintained by our business include www.climbcs.com, www.greymatter.com and www.datasolutions.co.uk.
+Added: Our website address is www.climbglobalsolutions.com, and the other web sites maintained by our business include www.climbcs.com, www.greymatter.com and www.dss-edu.com.
Information contained on or accessible through our websites is neither a part of this Annual Report nor incorporated by reference herein, and any references to our website and the inclusion of our website address in this Annual Report are intended to be inactive textual references only.
7 unchanged sentences
The full text of the Code of Ethics and Business Conduct, is available at our web site, http://www.climbglobalsolutions.com.
−Removed: The Company intends to disclose any amendment to, or waiver from, a provision of the Code of Ethical Conduct that applies to its Chief Executive Officer or Chief Financial Officer on our web site.
+Added: The Company intends to disclose any amendment to, or waiver from, a provision of the Code of Ethics and Business Conduct that applies to its Chief Executive Officer or Chief Financial Officer on our web site.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.