What changed in this filing

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Item 1. Business

2024-03-07 compared with 2023-03-06 · 92 added, 84 removed, 291 unchanged (38% of the section changed)

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We provide a wide range of IT solutions, from the desktop to the cloud—including computer systems, data center solutions, software and peripheral equipment, networking communications, and other products and accessories that we purchase from manufacturers, distributors, and other suppliers.

Our Technology Solutions Group, or TSG, and state-of-the-art Technology Integration and Distribution Center, or TIDC, with ISO 9001:2015 certified technical configuration lab offer end-to-end services related to the design, configuration, and implementation of IT solutions.

In 2023, we restructured and combined our Technology Solutions Group and Technical Sales Organization into one organization to be referred to as our Technology Solutions Organization, or TSO.

Our TSO and state-of-the-art Technology Integration and Distribution Center, or TIDC, with ISO 9001:2015 certified technical configuration lab offer end-to-end services related to the design, configuration, and implementation of IT solutions.

Our team also provides a comprehensive portfolio of managed services and professional services.

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Our GlobalServe offering ensures worldwide coverage for our multinational customers, delivering global procurement solutions through our network of in-country suppliers in over 150 countries.

The “Connection®” brand includes Connection Business Solutions, Connection Enterprise Solutions, and Connection Public Sector Solutions, which provide IT solutions and services to small to medium-sized businesses, or SMBs, enterprise, and public sector markets.

The “Connection®” brand includes Connection Enterprise Solutions, Connection Business Solutions, and Connection Public Sector Solutions.

We united all of our subsidiaries into one cohesive brand, reflecting the promise of our blue arc and our mission to connect people with technology that enhances growth, elevates productivity, and empowers innovation.

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● Connection Enterprise Solutions – serving large enterprise customers

● Connection Business Solutions – serving SMBs

● Connection Business Solutions – serving small to medium-sized businesses, or SMBs

● Connection Public Sector Solutions – serving federal, state, and local government and educational institutions

Financial results for each of our segments are included in the financial statements attached hereto.

We generate sales through (i) outbound telemarketing and field sales contacts by sales representatives focused on the business, educational, healthcare, and government markets, (ii) our websites, and (iii) direct responses from customers responding to our advertising media.

We offer a broad selection of over 460,000 products at competitive prices, including products from vendors like Apple, Cisco Systems, Dell, Dell-EMC, Hewlett-Packard Inc., Hewlett-Packard Enterprise, Lenovo, Microsoft, and VMware, and we partner with more than 2,500 suppliers.

We generate sales through (i) outbound inside sales and field sales contacts by sales representatives focused on the business, educational, healthcare, retail, manufacturing, and government markets, (ii) our websites, and (iii) direct responses from customers responding to our advertising media.

We offer a broad selection of over 460,000 products at competitive prices, including products from vendors like Apple, Cisco, Dell Inc., Hewlett-Packard Inc., Hewlett-Packard Enterprise, Intel, Lenovo, Microsoft Corporation, and VMware, and we partner with more than 2,500 suppliers.

We are able to leverage our state-of-the art logistic capabilities to rapidly ship product to customers.

Since our founding in 1982, we have consistently served our customers’ needs by providing innovative, reliable, and timely service and technical support, and by offering an extensive assortment of industry-leading products through knowledgeable, well-trained sales and support teams.

Our strategy’s effectiveness is reflected in the recognition we have received, including being named to the Fortune 1000 and the CRN Solution Provider 500 for twenty-two straight years.

In recent years, we have received numerous awards, including the Microsoft Excellence in Operations, Double Gold Level Award for delivering market-leading operational excellence, Aruba Federal Public Sector Partner of the Year, HPE Federal GreenLake Partner of the Year, and HP U.S.

Personal Systems National Solution Provider of the Year Award, as well as being named to the CRN Tech Elite 250 for the seventh year.

Connection has also been twice named “America’s Best-in-State Employers” by Forbes.

Our technical experts hold more than 2,500 professional certifications, and we have been awarded industry-leading partner authorizations, including Microsoft Azure Expert Managed Service Provider status and Google Cloud premier partner status.

Our strategy’s effectiveness is reflected in the recognition we have received, including being named to the Fortune 1000 and the CRN Solution Provider 500 for twenty-three straight years.

In recent years, we have received numerous awards, including the Microsoft Excellence in Operations, Double Gold Level Award for delivering market-leading operational excellence, Modern Work, Surface Hub Reseller 2023 Microsoft US Partner of the Year Award, Aruba Federal Public Sector Partner of the Year, HPE Federal GreenLake Partner of the Year, and HP U.S.

Personal Systems National Solution Provider of the Year Award, as well as being named to the CRN Tech Elite 250 for the eighth year.

Connection has also been twice named “America’s Best-in-State Employers” by Forbes and included on Newsweek’s list of Most Trustworthy Companies in America in 2022 and 2023.

Our technical experts hold more than 5,000 professional certifications, and we have been awarded industry-leading partner authorizations, including Microsoft Azure Expert Managed Service Provider status.

We believe this pursuit of excellence and our ability to understand our customers’ needs and provide comprehensive and effective IT solutions has earned us strong brand name recognition and a broad and loyal customer base.

We also believe that through our strong vendor relationships we can provide an efficient supply chain and be an effective IT solution provider for our diverse customer base.

We also believe that through our strong vendor

relationships we can provide an efficient supply chain and be an effective IT solution provider for our diverse customer base.

We strive to identify the unique needs of our corporate, government, educational, and small business customers, and have designed our business processes to enable our customers to effectively manage their IT systems.

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Sales representatives are responsible for managing enterprise, commercial, and public sector accounts, as specialization and a deep understanding of unique customer environments are more important than ever.

These sales representatives focus on current and prospective customers and are supported by an increasing number of engineering, technical, and administrative staff through our TSG and Technical Sales Organization, or TSO.

These sales representatives focus on current and prospective customers and are supported by an increasing number of engineering, technical, and administrative staff through our TSO.

Our Industry Solutions Group, or ISG, provides our sales team and customers with insights and guidance customized to the unique needs of our vertical markets, including healthcare, retail, finance, and manufacturing.

We believe that increasing our salesforce productivity is important to our future success, and we have increased our headcount and investments in our sales and sales support teams accordingly.

We believe that increasing our sales force productivity is important to our future success, and we have increased our headcount and investments in our sales and sales support teams accordingly.

We market our products and services through our websites:

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In the fiscal year ended December 31, 2023, we generated approximately 37.7% of our sales from SMBs, 42.2% from medium-to-large businesses (Fortune 1000), and 20.1% from government and educational institutions.

The United States IT market that we serve is estimated to be approximately $200 billion.

The largest segment of this market is served by local and regional Value-Added Resellers, or VARs, many of whom we believe are transitioning from the hardware and software products business to higher-margin IT services.

The largest segment of the United States IT market that we operate within is served by local and regional value-added resellers, or VARs, many of whom we believe are transitioning from the hardware and software products business to higher-margin IT services.

We have transitioned from an end-user or desktop-centric computing supplier to a network or enterprise-wide IT solutions supplier.

We have also partnered with third-party technology and telecommunications service providers to offer our customers access to the same services and technical expertise as local and regional VARs, but with a more extensive product selection at generally lower prices.

Intense competition for customers has led manufacturers of our IT products to use all available channels, including solutions providers, to distribute their products.

Certain of these manufacturers who have traditionally used resellers to distribute their products have, from time to time, established their own direct marketing operations, including sales through the Internet.

Intense competition for customers has led manufacturers of the IT products we offer to use all available distribution channels, including solutions providers, to distribute their products.

Certain manufacturers who have traditionally used resellers to distribute their products have also, from time to time, established their own direct marketing operations, including sales through the Internet.

We believe new entrants to the IT solutions channel must overcome a number of obstacles, including:

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We believe that we have become our customers’ IT provider of choice by calming the confusion surrounding IT procurement and solving complex business challenges with innovative IT solutions designed to meet their increased productivity, mobility, virtualization, and security needs in a continuously evolving IT environment.

We provide enhanced value by assisting our customers in cost-effectively maximizing business opportunities provided by new technologies and advanced service solutions.

We offer our customers enhanced value by assisting them with both the design and implementation of IT solutions directed at cost-effectively maximizing the business opportunities created by new technologies and advanced service solutions.

The key elements of our business strategies include:

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● Offering a broad product selection at competitive prices .

We offer a broad range of IT products and solutions, including personal computers and related peripheral products, servers, storage, managed services, cloud solutions, and networking infrastructure, at costs that allow our customers to be more productive while maximizing their IT budgets.

Our advanced solution offerings include network, server, storage, and mission-critical onsite installation and support using proprietary cloud-based service management software.

We offer a broad range of IT products and solutions, including personal computers and related peripheral products, servers, storage, managed services, cloud solutions, and networking infrastructure, at costs that are designed to allow our customers to be more productive while maximizing their IT budgets.

Our integrated and advanced solution offerings include network, server, storage, and mission-critical onsite installation and support using proprietary cloud-based service management software.

We offer products and enhanced service capabilities with aggressive price and performance standards, all with the convenience of one-stop shopping for technology solutions.

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To better address their business needs, we have focused our solution service capabilities on several key areas:

data and automation, workplace transformation, cloud, cybersecurity, and managed services.

Our TSG and TSO are responsible for understanding the infrastructure needs of our customers, and for designing cost-effective technology solutions to address them.

data and automation, workplace transformation, cloud, cybersecurity, and technology services.

Our TSO is responsible for understanding the infrastructure needs of our customers, and for designing cost-effective technology solutions to address them.

We have also partnered with third-party providers to make available a range of IT support services, including asset assessment, implementation, maintenance, and disposal services.

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Since our founding in 1982, we have built a strong brand name and customer awareness.

We have been named to the Fortune 1000 and the CRN Solution Provider 500 for each of the last twenty-two years.

We actively work with our existing customers to become their IT provider of choice for products and enhanced solution services, while seeking to ensure our reputation of high-quality customer service, tailored marketing programs, and competitive pricing lead the way to expanding our share of the overall IT market.

We have been named to the Fortune 1000 and the CRN Solution Provider 500 for each of the last twenty-three years.

Through the use of creative, consistent marketing activities, our goal is to strengthen the Connection brand and reinforce our reputation as a trusted IT advisor with a history of innovation and customer-centric service.

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Our close partnerships with leading technology manufacturers and vendors provide our team with access to the latest product offerings, training assets, and support resources.

We have a history of strong relationships with vendors, and were among the first national solutions providers qualified by manufacturers to market computer systems to end users.

By working closely with our vendors to provide an efficient channel for the advertising and distribution of their products and solutions, we expect to expand market share and generate opportunities for optimizing partner incentive

We have a history of strong relationships with vendors, and were among the first global solutions providers qualified by manufacturers to market computer systems to end users.

By working closely with our vendors to provide an efficient channel for the advertising and distribution of their products and

solutions, we expect to expand market share and generate opportunities for optimizing partner incentive programs.

We promote communication and collaboration with our partner community at every level of our organization, from sales and product management to leadership.

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GROWTH STRATEGIES

Our growth strategies are designed to increase revenues by maximizing operational efficiencies while offering innovative products and value-added service offerings, increasing penetration of our existing customers, and expanding our customer base.

Our six key elements of growth are:

Our growth strategies are designed to increase revenues by maximizing operational efficiencies while offering innovative products and value-added service offerings, expanding our offerings to our existing customers, and expanding our customer base.

Our seven key elements of growth are:

● Expanding hardware and software offerings.

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We strive to accelerate solution and service growth by providing creative solutions to the increasingly complex hardware and software needs of our customers.

Our converged data center, networking, mobility, security, cloud solutions, lifecycle, and software services practice groups consist of industry-certified and product-certified engineers, as well as highly specialized third-party providers.

We believe our investment in these seven practice areas may increase our share of our customers’ annual IT expenditures by broadening the range of products and services they purchase from us.

Our cloud, cybersecurity, data center, workplace transformation, and technology services teams consist of industry-certified and product-certified engineers, as well as highly specialized third-party providers.

We believe our investment in these areas may increase our share of our existing customers’ annual IT expenditures by broadening the range of products and services they purchase from us.

● Delivering artificial intelligence, or AI, and automation solutions.

We believe that the AI services we offer can be deployed in tailored, efficient, and cost-effective manners to drive our clients’ success.

We currently offer AI workshops, which we deliver to customers, and AI infrastructure design and optimization services for core AI infrastructure.

We are currently in the process of expanding on these services to include other areas that represent a broader AI ecosystem of development.

Working alongside leaders within our partner ecosystem, we are expanding our capabilities and capacity to identify and bring to market the technologies and guidance that customers—across a broad range of industries and specialized verticals—require to ensure a seamless transition into the AI era.

We believe our focus on helping customers understand this intricate landscape, discover and define their unique AI value path, and realize its envisioned potential will enable us to serve as a trusted advisor and deliver a holistic approach to AI and automation that encompasses strategy, technical expertise, and integration.

● Targeting customer segments.

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We have also developed digital marketing capabilities, which include but are not limited to digital remarketing, digital buying guides, Google shopping integration, along with social media advertising and search engine optimization.

All of these aforementioned methods also help us fine tune and optimize our Internet marketing campaigns that focus on select markets, such as healthcare, retail, financial, and manufacturing.

All of these methods also help us to fine tune and optimize our Internet marketing campaigns that focus on select markets, such as healthcare, retail, finance, and manufacturing.

● Increasing productivity of our sales representatives .

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Cloud computing is a key driver of new IT spending as our customers seek scalable, cost-effective solutions.

We plan to expand our cloud-based solution sales and assist our customers in navigating the complex and growing field of cloud-solution offerings.

This focus on cloud includes investing in the training and certification resources required to help our customers adopt and optimize cloud technologies.

In 2022, we maintained Microsoft Azure Expert Managed Service Provider status as well as Google Cloud premier partner status—two exclusive designations that require an intensive auditing process and a proven record of delivering exceptional customer service and in-depth technical expertise around core cloud competencies.

We plan to expand our cloud-based solution sales and assist our customers in navigating the complex and growing field of multicloud-solution offerings.

This focus on cloud includes investing in the training and certification resources required to help our customers adopt and

optimize cloud technologies.

In 2023, we maintained Microsoft Azure Expert Managed Service Provider status—an exclusive designation that requires an intensive auditing process and a proven record of delivering exceptional customer service and in-depth technical expertise around core cloud competencies.

● Pursuing strategic acquisitions and alliances.

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Since our founding in 1982, our primary objective has been to provide products and services that meet the demands and needs of our customers and to supplement those products with up-to-date product information and excellent customer service and support.

We believe that offering our customers superior value, through a combination of product knowledge, consistent and reliable service and support, and leading products at competitive prices, differentiates us from other national solutions providers and serves as the foundation for developing a broad and loyal customer base.

We believe that offering our customers superior value, through a combination of product knowledge, consistent and reliable service and support, and leading products at competitive prices, differentiates us from other global solutions providers and serves as the foundation for developing a broad and loyal customer base.

We invest in training programs for our service and support personnel, with an emphasis on putting customer needs and service first.

Supplementing our salesforce, our TSG and TSO offer in-depth technical support across a wide range of advanced technology solutions.

Supplementing our sales force, our TSO offers in-depth technical support across a wide range of advanced technology solutions.

These teams of engineers and solution architects design end-to-end IT solutions tailored to our customers’ unique environments and serve as technology consultants.

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We sell our products through our direct marketing channels to (i) SMBs including small office/home office customers, (ii) government and educational institutions, and (iii) medium-to-large businesses.

We strive to be the primary supplier of IT products and solutions to our existing and prospective customers by providing exemplary customer service.

We strive to be the primary supplier of IT products and solutions to our customers by providing exemplary customer service.

We use multiple marketing approaches to reach existing and prospective customers, including:

● outbound telemarketing and field sales;

● outbound inside sales and field sales;

● digital, web, and print media advertising;

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Because our customers’ primary contact with us is through our sales representatives, we are committed to maintaining a qualified, knowledgeable, and motivated sales staff with a principal focus on customer service.

Outbound Telemarketing and Field Sales.

Outbound Inside Sales and Field Sales.

We seek to build loyal relationships with potential high-volume customers by assigning them to individual account managers.

We believe that customers respond favorably to one-on-one relationships with personalized, well-trained account managers.

Once established, these one-on-one relationships are

maintained and enhanced through frequent telecommunications and targeted electronic communications, as well as other marketing materials designed to meet each customer’s specific IT needs.

Once established, these one-on-one relationships are maintained and enhanced through frequent telecommunications and targeted electronic communications, as well as other marketing materials designed to meet each customer’s specific IT needs.

We pay most of our account managers a base annual salary plus incentive compensation.

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The Internet supports three key business initiatives for us:

● Customer choice — We have built our business on the premise that our customers should be able to choose how they interact with us - be it by telephone, or by means of their desktop or mobile device via email or the Internet.

● Customer choice — We have built our business on the premise that our customers should be able to choose how they interact with us - whether it be by telephone, or through the use of their desktop or mobile device via email or the Internet.

● Lowering transactions costs — Our website tools include robust product search features and Internet Business Accounts (customized Web pages), which allow customers to quickly and easily find information about products of interest to them.

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We conduct our business operations through three operating segments:

Business Solutions, Enterprise Solutions, and Public Sector Solutions.

Business Solutions Segment .

Our principal target markets in this segment are small to medium-sized business customers.

We use a combination of outbound telemarketing, including some on-site sales solicitation by business development managers, and Internet sales through customized Internet Business Accounts, to reach these customers.

Enterprise Solutions, Business Solutions, and Public Sector Solutions.

Enterprise Solutions Segment.

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Our strategy is to be the primary single source procurement portal for our large corporate customers.

Business Solutions Segment .

Our principal target markets in this segment are small to medium-sized business customers.

We use a combination of outbound inside sales, including some on-site sales solicitation by business development managers, and Internet sales through customized Internet Business Accounts, to reach these customers.

Public Sector Solutions Segment .

We use a combination of outbound inside sales, including some on-site sales solicitation by business development managers, and Internet sales through customized Internet Business Accounts, to

reach these customers.

We target each of the four distinct market sectors within this segment—federal government, higher educational institutions, school grades K-12, and state and local governments.

The following table sets forth the relative distribution of net sales by operating segment:

The following table sets forth the relative distribution of net sales by operating segment for the periods presented:

Years Ended December 31,

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We maintain an extensive database of customers and prospects.

However, no single customer accounted for more than 4% of our consolidated revenue in 2022, 2021, and 2020.

While no single agency of the federal government comprised more than 4% of consolidated revenue in 2022, 2021, and 2020, aggregate revenue to the federal government was 3.6%, 3.9%, and 4.6% in 2022, 2021, and 2020, respectively.

The federal government (and the other government entities we service) generally has the ability to terminate contracts, in whole or in part, with little or no prior notice, for convenience or for default based upon performance.

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We currently offer our customers over 460,000 IT products designed for business applications from more than 2,500 vendors.

These products consist of hardware, including devices, peripherals, accessories, servers, and networking products, along with software and services.

We select the products we sell based upon their technology and effectiveness, market demand, product

features, quality, price, margins, and warranties.

The following table sets forth our percentage of net sales for major product categories:

PERCENTAGE OF

These products consist of hardware, including devices, peripherals, accessories, servers, and networking products, along with cloud solutions, software and services.

We select the products and solutions we sell based upon their technology and

effectiveness, market demand, product features, quality, price, margins, and warranties.

The following table sets forth our percentage of net sales for major product categories for the periods presented:

Years Ended December 31,

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Servers/Storage

Net/Com Product

Net/Com Products

Displays and Sound

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PURCHASING AND VENDOR RELATIONS

Product purchases from Ingram Micro, Inc., TD Synnex Corporation, and Microsoft Corporation accounted for approximately 21%, 19%, and 11%, respectively, of our total product purchases in 2023.

Product purchases from Ingram Micro, Inc., TD Synnex Corporation, and Dell Inc.

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accounted for approximately 23%, 23%, and 12%, respectively, of our total product purchases in 2021.

Product purchases from Ingram Micro, Inc., TD Synnex Corporation and HP Inc.

accounted for approximately 21%, 15% and 12% respectively, of our total product purchases in 2020.

No other singular vendor supplied more than 10% of our total product purchases in 2023, 2022, and 2021.

We believe that, while we may experience some short-term disruption if products from Ingram Micro, Inc., TD Synnex Corporation, HP Inc., Dell Inc., or any of these vendors become unavailable to us, alternative sources are available.

Products manufactured by HP Inc.

collectively represented approximately 14%, 15% and 18% of our net sales in 2022, 2021 and 2020, respectively.

We believe that in the event we experience either a short-term or permanent disruption of supply of HP Inc.

We believe that, while we may experience some short-term disruption if products from Ingram Micro, Inc., TD Synnex Corporation, Microsoft Corporation, Dell Inc., or any of these vendors become unavailable to us, alternative sources are available.

Products manufactured by Microsoft Corporation, HP Inc., and Dell Inc.

represented approximately 15%, 13%, and 11%, respectively, of our total product purchases in 2023.

Products manufactured by HP Inc., Dell Inc., Microsoft Corporation, and Lenovo represented approximately 14%, 13%, 12%, and 11% of our total product purchases in 2022.

Products manufactured by HP Inc., Dell Inc., Microsoft Corporation, and Lenovo represented approximately 15%, 14%, 11%, and 10% of our total product purchases in 2021.

No other singular product manufacturer produced more than 10% of our total product purchases in 2023, 2022, and 2021.

We believe that in the event we experience either a short-term or permanent disruption of supply of Microsoft Corporation, HP Inc., or Dell Inc.

products, such disruption would likely have a material adverse effect on our results of operations and cash flows.

Throughout the year, we have seen continued improvement in the supply chain, although pockets of constraints still exist with a few suppliers, most notably with HPE and Cisco.

Throughout the year, we saw continued improvement in the supply chain as constraints brought on by the COVID-19 pandemic were resolved and products now are generally in adequate supply.

Many product suppliers reimburse us for advertisements or other cooperative marketing programs through various marketing vehicles.

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We generally pay vendors within stated terms, or earlier when favorable cash discounts are offered.

We believe our high volume of purchases enables us to obtain product pricing and terms that are competitive with those available to other national IT solutions providers.

We believe our high volume of purchases enables us to obtain product pricing and terms that are competitive with those available to other global IT solutions providers.

Although brand names and individual product offerings are important to our business, we believe that competitive products are available in substantially all of the merchandise categories offered by us.

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We also compete with:

● certain product manufacturers that sell directly to customers as well as some of our own suppliers, such as Apple, Dell, HP, and Lenovo;

● software publishers, such as Microsoft, VMware, Adobe, and Symantec;

● distributors that sell directly to certain customers, such as Apple, Dell, Lenovo, and HP;

● certain product manufacturers that sell directly to customers as well as some of our own suppliers, such as Apple, Dell Inc., HP Inc., and Lenovo;

● software publishers, such as Microsoft Corporation, VMware, and Adobe;

● distributors that sell directly to certain customers, such as Apple, Dell Inc., Lenovo, and HP Inc.;

● companies that develop and deliver on bespoke AI projects, such as Palantir and Scale.ai;

● local and regional VARs;

● cloud providers, such as Amazon Web Services, Google and Microsoft;

● large service providers and system integrators, such as Accenture, Dell EMC, Hewlett Packard Enterprise and IBM;

● communications service providers, such as AT&T, CenturyLink and Verizon;

● cloud providers, such as Amazon Web Services, Google and Microsoft Corporation;

● large service providers and system integrators, such as Accenture, CGI, and IBM;

● communications service providers, such as AT&T and Verizon;

● various franchisers, office supply superstores, and national computer retailers, such as Office Depot and Staples;

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INTELLECTUAL PROPERTY RIGHTS

Our trademarks include, among others, Connection®, PC Connection®, GovConnection®, MacConnection®, we solve IT®, Everything Overnight®, Mobile Connection®, Cloud Connection®, Education Connection®, MoreDirect A PC Connection Company®, WebSPOC®, Softmart®, GlobalServe®, Raccoon Character®, and their related logos and all iterations thereof.

Our trademarks include, among others, Connection®, PC Connection®, GovConnection®, MacConnection®, we solve IT®, Everything Overnight®, Mobile Connection®, Cloud Connection®, Education Connection®, MoreDirect™, WebSPOC®, Softmart®, GlobalServe®, Raccoon Character, Connection Cloud MarkITplace™, and their related logos and all iterations thereof.

We intend to use and protect these and our other marks, as we deem necessary.

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We do not maintain a traditional research and development group, but we work closely with computer product manufacturers and other technology developers to stay abreast of the latest developments in computer technology, with respect to the products we both sell and use.

For example, we recognize AI as a potentially transformational force and anticipate that AI will significantly impact our product offerings and the business operations of our clientele in the long term.

REGULATORY MATTERS

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Failure to comply with these laws, where applicable, can result in the imposition of significant civil and/or criminal penalties and private litigation.

Privacy and security laws, regulations, and other obligations are constantly evolving, may

conflict with each other to complicate compliance efforts, and can result in investigations, proceedings, or actions that lead to significant civil and/or criminal penalties and restrictions on data processing.

Privacy and security laws, regulations, and other obligations are constantly evolving, may conflict with each other to complicate compliance efforts, and can result in investigations, proceedings, or actions that lead to significant civil and/or criminal penalties and restrictions on data processing.

HUMAN CAPITAL

Our culture is reflected through our employees, who are driven to serve our customers, our partners, our communities and all of our stakeholders.

We provide our employees with diverse experiences, training, and engagement opportunities to build a stronger team.

We provide our employees with support, training, and engagement opportunities to build stronger and more diverse teams.

Our culture—and the employees who share that culture with our customers and communities—are essential to our success and our ability to attract and retain top talent.

Our Connection Cares initiative, launched in 2021, builds on the company’s long history of inclusivity and social responsibility with working groups focused on key areas:

employee recognition, charitable giving, sustainability, and diversity and inclusion.

Employees volunteer within these groups to share their ideas, conduct company-wide campaigns, and make a positive impact within our team and our wider community.

These activities, and the formal structure to support them, help ensure we are able to offer the work environment and corporate culture that today’s workforce demands.

employee recognition, charitable giving, sustainability, and diversity, equity, and inclusion.

Employees volunteer within these groups to share their ideas, conduct company-wide campaigns, and make a positive impact throughout the company and our wider community.

These activities, and the formal structure to support them, help ensure we are able to offer a supportive work environment and corporate culture that today’s workforce demands.

We focus on the following key areas in hiring and developing our employees:

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We further align our sales representatives’ compensation to their individual performance by providing excellent commission opportunities.

We provide a comprehensive benefits package to our employees, including healthcare, retirement plans with Company’s match, tuition assistance, inclusive parental leave policies, adoption assistance, paid time off, paid volunteer hours and philanthropic match programs based upon eligibility and location.

We provide a comprehensive benefits package to our employees, including medical coverage, retirement plans with matching contributions, tuition assistance, inclusive parental leave policies, adoption assistance, paid time off, paid volunteer hours, and wellness hours.

● Oversight and Management.

Our Board of Directors understands the importance of our inclusive, performance-driven culture to our ongoing success and is actively engaged with our President and Chief Executive Officer and our Vice President of Human Resources across a broad range of human capital management topics.

Our Board of Directors understands the importance of our inclusive, performance-driven culture to our ongoing success and is actively engaged with our President and Chief Executive Officer and our Senior Vice President of Human Resources across a broad range of human capital management topics.

As of December 31, 2023, we employed 2,703 persons (full-time equivalent), of whom 1,152 (including 332 management and support personnel) were engaged in sales-related activities, 616 were engaged in providing IT services and customer service and support, 607 were engaged in purchasing, marketing, and distribution-related activities, 124 were engaged in the operation and development of management information systems, and 204 were engaged in administrative and finance functions.

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AVAILABLE INFORMATION

We are subject to the informational requirements of the Exchange Act, and accordingly, we file reports, proxy and information statements, and other information with the Securities and Exchange Commission, or SEC.

We are subject to the informational requirements of the Securities Exchange Act of 1934 (the “Exchange Act”), and accordingly, we file reports, proxy and information statements, and other information with the Securities and Exchange Commission, or SEC.

The SEC maintains a website (http://www.sec.gov) that contains such reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC.

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We are not including the information contained in our website as part of, or incorporating by reference into, this Annual Report on Form 10-K.

We make available free of charge through our website our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K, and amendments to these reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act, as soon as reasonably practical after we electronically file these materials with, or otherwise furnish them to, the SEC.

We make available free of charge through our investor relations website our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K, and amendments to these reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act, as soon as reasonably practical after we electronically file these materials with, or otherwise furnish them to, the SEC.

In addition, we routinely post on the “Investor Relations” section of our website news releases, announcements, and other statements about our business, some of which may contain information that may be deemed material to investors.

Therefore, we encourage investors, the media, and others interested in our company to review the information we post on

the “Investor Relations” section of our corporate website.

Therefore, we encourage investors, the media, and others interested in our company to review the information we post on the “Investor Relations” section of our corporate website.

The contents of our corporate website are not, however, a part of this Annual Report on Form 10-K.

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.

What changed 10-K

Item 1. Business