What changed in this filing

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Item 1. Financial Statements

2025-07-30 compared with 2025-04-30 · 161 added, 68 removed, 310 unchanged (42% of the section changed)

27 unchanged sentences

Retained earnings

Accumulated other comprehensive income

Accumulated other comprehensive (loss) income

Treasury stock, at cost

7 unchanged sentences

Three Months Ended

Six Months Ended

Cost of sales

13 unchanged sentences

Three Months Ended

Six Months Ended

Other comprehensive loss:

Unrealized losses on available-for-sale investments, net of tax of $ 30 and $ 38 for the three months ended March 31, 2025 and 2024, respectively

Unrealized losses on available-for-sale investments, net of tax of $ 30 and $ 60 for the three and six months ended June 30, 2025, respectively, and net of tax of $ 11 and $ 49 for the three and six months ended June 30, 2024, respectively

Comprehensive income

4 unchanged sentences

(amounts in thousands)

Three Months Ended March 31, 2025

Three Months Ended June 30, 2025

Accumulated Other

1 unchanged sentence

Paid-In Capital

Comprehensive Income (Loss)

Balance - December 31, 2024

Comprehensive (Loss) Income

Balance - March 31, 2025

Stock-based compensation expense

2 unchanged sentences

Repurchase of common stock for treasury

Issuance of common stock under Employee Stock Purchase Plan

Dividend declaration ($ 0.15 per share)

Other comprehensive loss, net of tax

Balance - June 30, 2025

Three Months Ended June 30, 2024

Accumulated Other

Treasury Shares

Paid-In Capital

Comprehensive (Loss) Income

Balance - March 31, 2024

Three Months Ended March 31, 2024

Stock-based compensation expense

Restricted stock units vested

Shares withheld for taxes paid on stock awards

Repurchase of common stock for treasury

Issuance of common stock under Employee Stock Purchase Plan

Dividend declaration ($ 0.10 per share)

Other comprehensive loss, net of tax

Balance - June 30, 2024

See notes to unaudited condensed consolidated financial statements.

Six Months Ended June 30, 2025

Accumulated Other

1 unchanged sentence

Paid-In Capital

Comprehensive Income (Loss)

Comprehensive (Loss) Income

Balance - December 31, 2024

3 unchanged sentences

Repurchase of common stock for treasury

Issuance of common stock under Employee Stock Purchase Plan

Dividend declaration ($ 0.15 per share)

Other comprehensive loss, net of tax

Balance - March 31, 2024

Balance - June 30, 2025

Six Months Ended June 30, 2024

Accumulated Other

Treasury Shares

Paid-In Capital

Comprehensive (Loss) Income

Balance - December 31, 2023

Stock-based compensation expense

Restricted stock units vested

Shares withheld for taxes paid on stock awards

Repurchase of common stock for treasury

Issuance of common stock under Employee Stock Purchase Plan

Dividend declaration ($ 0.10 per share)

Other comprehensive loss, net of tax

Balance - June 30, 2024

See notes to unaudited condensed consolidated financial statements.

3 unchanged sentences

(amounts in thousands)

Three Months Ended

Six Months Ended

Cash Flows (used in) provided by Operating Activities:

3 unchanged sentences

Stock-based compensation expense

Deferred income taxes

Amortization of discount on short-term investments, net

18 unchanged sentences

Purchase of common stock for treasury shares

Payments for excise tax on treasury purchases

Dividend payments

Issuance of stock under Employee Stock Purchase Plan

Payment of payroll taxes on stock-based compensation through shares withheld

Net cash used in financing activities

Increase in cash and cash equivalents

Increase (decrease) in cash and cash equivalents

Cash and cash equivalents, beginning of period

10 unchanged sentences

AND SUBSIDIARIES

PART I―FINANCIAL INFORMATION

Item 1―Financial Statements

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENT S

8 unchanged sentences

Subsequent events have been evaluated through the date of issuance of these financial statements.

The operating results for the three months ended March 31, 2025 may not be indicative of the results expected for any succeeding quarter or the entire year ending December 31, 2025.

The operating results for the three and six months ended June 30, 2025 may not be indicative of the results expected for any succeeding quarter or the entire year ending December 31, 2025.

Certain amounts in the prior period’s condensed consolidated financial statements have been reclassified to conform with the current period presentation.

13 unchanged sentences

The Company classifies investments as short-term when their remaining contractual maturities are one year or less from the balance sheet date, and as long-term when the investment has a remaining contractual maturity of more than one year from the balance sheet date.

The Company records investments at fair value with unrealized gains and losses recorded as a component of accumulated other comprehensive income on the condensed consolidated balance sheets.

Included in interest income, net on the condensed consolidated statements of income is interest income on cash equivalents and short-term investments of $ 3,801 and $ 4,565 for the three months ended March 31, 2025 and 2024, respectively.

The Company records investments at fair value with unrealized gains and losses recorded as a component of accumulated other comprehensive (loss) income on the condensed consolidated balance sheets.

Included in interest income, net on the condensed consolidated statements of income is interest income on cash equivalents and short-term investments of $ 3,217 and $ 7,018 for the three and six months ended June 30, 2025, respectively, and $ 4,655 and $ 9,220 for the three and six months ended June 30, 2024, respectively.

Treasury Stock, at Cost

The total repurchases for the three months ended March 31, 2025 and 2024 were recorded as treasury stock of $ 45,162 and $ 188 , respectively.

The total repurchases for the six months ended June 30, 2025 and 2024 were recorded as treasury stock of $ 60,863 and $ 3,788 , respectively.

Such costs reflect the applicable one percent excise tax imposed by the Inflation Reduction Act of 2022 on the net value of certain stock repurchases made after December 31, 2022.

On April 30, 2025, the Company announced that its Board of Directors authorized a $ 50,000 increase to the share repurchase program, which was incremental to the approximately $ 14,919 remaining as of March 31, 2025.

Severance Expenses

The severance expenses recorded for the three months ended March 31, 2025 were related to an involuntary reduction in the Company’s workforce to lower the Company’s cost structure and included cash severance and other related termination benefits.

The majority of these costs are expected to be paid within a year of termination.

Included in accrued expenses and other liabilities on the condensed consolidated balance sheets as of March 31, 2025 was $ 2,858 related to unpaid severance expenses.

The severance expenses recorded for the six months ended June 30, 2025 and the three and six months ended June 30, 2024 were related to involuntary reductions in the Company’s workforce to lower the Company’s cost structure and included cash severance and other related termination benefits.

The majority of these costs are expected to be paid within a year of the applicable termination.

Included in accrued expenses and other liabilities on the condensed consolidated balance sheets as of June 30, 2025 was $ 1,394 related to unpaid severance expenses.

Recently Issued Financial Accounting Standards

11 unchanged sentences

The Company disaggregates revenue from its arrangements with customers by type of products and services, as it believes this method best depicts how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors.

The following tables represent a disaggregation of revenue from arrangements with customers for the three months ended March 31, 2025 and 2024, along with the segment for each category (in thousands).

Three Months Ended March 31, 2025

The following tables represent a disaggregation of revenue from arrangements with customers for the three months ended June 30, 2025 and 2024, along with the segment for each category (in thousands).

Three Months Ended June 30, 2025

Public Sector

5 unchanged sentences

Total Net sales

Three Months Ended March 31, 2024

Three Months Ended June 30, 2024

Public Sector

5 unchanged sentences

Total Net sales

The following tables represent a disaggregation of revenue from arrangements with customers for the six months ended June 30, 2025 and 2024, along with the segment for each category (in thousands).

Six Months Ended June 30, 2025

Public Sector

Notebooks/Mobility

Servers/Storage

Net/Com Products

Displays and Sound

Other Hardware/Services

Total Net sales

Six Months Ended June 30, 2024

Public Sector

Notebooks/Mobility

Servers/Storage

Net/Com Products

Displays and Sound

Other Hardware/Services

Total Net sales

Contract Balances

The following table provides information about contract liabilities from arrangements with customers as of March 31, 2025 and December 31, 2024 (in thousands).

March 31, 2025

The following table provides information about contract liabilities from arrangements with customers as of June 30, 2025 and December 31, 2024 (in thousands).

June 30, 2025

December 31, 2024

Contract liabilities, which are included in accrued expenses and other liabilities

Changes in the contract liability balances during the three months ended March 31, 2025 and 2024 are as follows (in thousands):

Changes in the contract liability balances during the six months ended June 30, 2025 and 2024 are as follows (in thousands):

Balance at December 31, 2024

1 unchanged sentence

Amounts recognized as revenue as performance obligations satisfied

Balance at March 31, 2025

Balance at June 30, 2025

Balance at December 31, 2023

1 unchanged sentence

Amounts recognized as revenue as performance obligations satisfied

Balance at March 31, 2024

Balance at June 30, 2024

Note 3–Fair Value Measurements

Cash equivalents and short-term investments as of March 31, 2025 and December 31, 2024 consist of the following (in thousands):

March 31, 2025

Cash equivalents and short-term investments as of June 30, 2025 and December 31, 2024 consist of the following (in thousands):

June 30, 2025

Amortized Cost

17 unchanged sentences

All short-term investments had stated maturity dates of less than one year.

The Company has recorded the securities at fair value on its condensed consolidated balance sheets and unrealized gains and losses are reported as a component of accumulated other comprehensive income.

The amount of realized gains and losses reclassified into earnings and the related adjustments to deferred taxes are based on the specific identification of the securities sold or securities that reached maturity date.

8 unchanged sentences

Unobservable inputs that are supported by little or no market activities and are based on significant assumptions and estimates.

As of March 31, 2025 and December 31, 2024, the fair value of the Company’s investments were all measured using level 1 inputs.

As of June 30, 2025 and December 31, 2024, the fair values of the Company’s investments were all measured using level 1 inputs.

Note 4–Earnings Per Share

1 unchanged sentence

Diluted earnings per share is computed using the weighted average number of shares outstanding adjusted for the incremental shares attributable to non-vested stock units and stock options outstanding, if dilutive.

The following table sets forth the computation of basic and diluted earnings per share for the three months ended March 31, 2025 and 2024 (in thousands, except per share data):

Three Months Ended March 31,

The following table sets forth the computation of basic and diluted earnings per share for the three and six months ended June 30, 2025 and 2024 (in thousands, except per share data):

Three Months Ended June 30,

Six Months Ended June 30,

Denominator for basic earnings per share

2 unchanged sentences

Earnings per share:

For the three months ended March 31, 2025 and 2024, the Company had no outstanding non-vested stock units that were excluded from the computation of diluted earnings per share because including them would have had an anti-dilutive effect.

For the three and six months ended June 30, 2025 and 2024, the Company had no outstanding non-vested stock units that were excluded from the computation of diluted earnings per share because including them would have had an anti-dilutive effect.

Note 5 – Leases

The Company leases certain facilities from a related party, which is a company affiliated with it through common ownership.

As of March 31, 2025, there were no additional significant operating leases that have not yet commenced.

Refer to the following table for quantitative information related to the Company’s leases for the three months ended March 31, 2025 and 2024 (dollars in thousands):

Three Months Ended March 31, 2025

Three Months Ended March 31, 2024

As of June 30, 2025, there were no additional significant operating leases that have not yet commenced.

Refer to the following table for quantitative information related to the Company’s leases for the three and six months ended June 30, 2025 and 2024 (dollars in thousands):

Three Months Ended June 30, 2025

Six Months Ended June 30, 2025

Related Parties

10 unchanged sentences

Capitalized operating leases

As of March 31, 2025, future lease payments over the remaining term of capitalized operating leases were as follows (in thousands):

Three Months Ended June 30, 2024

Six Months Ended June 30, 2024

Related Parties

Capitalized operating lease cost

Short-term lease cost

Total lease cost

Other Information

Cash paid for amounts included in the measurement of lease liabilities and capitalized operating leases:

Operating cash flows

Weighted-average remaining lease term (in years):

Capitalized operating leases

Weighted-average discount rate:

Capitalized operating leases

As of June 30, 2025, future lease payments over the remaining term of capitalized operating leases were as follows (in thousands):

For the Years Ended December 31,

2025, excluding the three months ended March 31, 2025

2025, excluding the six months ended June 30, 2025

Imputed interest

Lease liability balance at March 31, 2025

As of March 31, 2025, the right-of-use, or ROU, asset had a balance of $ 2,808 .

Lease liability balance at June 30, 2025

As of June 30, 2025, the right-of-use, or ROU, asset had a balance of $ 2,219 .

The long-term lease liability was $ 634 and the short-term lease liability, which is included in accrued expenses and other liabilities on the condensed consolidated balance sheets, was $ 1,917 .

1 unchanged sentence

The long-term lease liability was $ 1,552 and the short-term lease liability, which is included in accrued expenses and other liabilities on the condensed consolidated balance sheets, was $ 1,805 .

Note 6–Accumulated Other Comprehensive Income

Accumulated other comprehensive income, which is included as a component of stockholders’ equity, is comprised of unrealized gains and losses on short-term investments, net of tax.

The changes in accumulated other comprehensive income were as follows (in thousands):

Three Months Ended

March 31, 2025

Note 6–Accumulated Other Comprehensive (Loss) Income

Accumulated other comprehensive (loss) income, which is included as a component of stockholders’ equity, is comprised of unrealized gains and losses on short-term investments, net of tax.

The changes in accumulated other comprehensive (loss) income were as follows (in thousands):

Six Months Ended

June 30, 2025

Balance - December 31, 2024

Other comprehensive income (loss) before reclassifications, net of tax

Less amounts reclassified from accumulated other comprehensive income, net of tax

Other comprehensive loss before reclassifications, net of tax

Less amounts reclassified from accumulated other comprehensive (loss) income, net of tax

Net other comprehensive loss

Balance - March 31, 2025

Three Months Ended

March 31, 2024

Balance - June 30, 2025

Six Months Ended

June 30, 2024

Balance - December 31, 2023

Other comprehensive income (loss) before reclassifications, net of tax

Less amounts reclassified from accumulated other comprehensive income, net of tax

Other comprehensive loss before reclassifications, net of tax

Less amounts reclassified from accumulated other comprehensive (loss) income, net of tax

Net other comprehensive loss

Balance - March 31, 2024

Included in amounts reclassified from accumulated other comprehensive income, net of tax for the three months ended March 31, 2025 is $ 76 of realized gain, which is included in “Other income” on the unaudited condensed consolidated statements of income.

Balance - June 30, 2024

Included in amounts reclassified from accumulated other comprehensive (loss) income, net of tax for the six months ended June 30, 2025 is $ 76 of realized gain, which is included in “Other income” on the unaudited condensed consolidated statements of income.

Note 7–Segment Information

5 unchanged sentences

Most of the operating costs associated with the Headquarters/Other functions are charged to the operating segments based on their estimated usage of the underlying functions.

The Company reports these charges to the operating segments as “Allocations”.

The Company reports

these charges to the operating segments as “Allocations”.

Headquarters/Other amounts that are not allocated to the operating segments are shown as reconciling items in the tables below.

2 unchanged sentences

The CODM uses operating income for each segment in the annual budget, periodic forecasting, and quarterly results processes.

Segment information applicable to the Company’s operating segments and the related reconciliations to consolidated amounts for the three months ended March 31, 2025 and 2024 are shown below (in thousands):

Three Months Ended March 31, 2025

Segment information applicable to the Company’s operating segments and the related reconciliations to consolidated amounts for the three and six months ended June 30, 2025 and 2024 are shown below (in thousands):

Three Months Ended June 30, 2025

Public Sector

8 unchanged sentences

Income before taxes

Six Months Ended June 30, 2025

Public Sector

Cost of sales

Personnel costs

Allocated corporate overhead

Depreciation and amortization

Other segment expenses 1

Operating income (loss)

Unallocated Headquarters/Other expenses

Interest income, net

Income before taxes

Segment assets

1 unchanged sentence

Consolidated assets

Three Months Ended March 31, 2024

Three Months Ended June 30, 2024

Public Sector

4 unchanged sentences

Other segment expenses 1

Operating income

Unallocated Headquarters/Other expenses

Interest income, net

Income before taxes

Six Months Ended June 30, 2024

Public Sector

Cost of sales

Personnel costs

Allocated corporate overhead

Depreciation and amortization

Other segment expenses 1

Operating income (loss)

8 unchanged sentences

Assets reported under the Headquarters/Other are managed by corporate headquarters, including cash and cash equivalents, short-term investments, inventories, property and equipment, ROU assets, and intercompany balance, net.

As of March 31, 2025 and 2024, total assets for the Headquarters/Other were presented net of intercompany balance eliminations of $ 61,063 and $ 15,039 , respectively.

As of June 30, 2025 and 2024, total assets for the Headquarters/Other were presented net of intercompany balance eliminations of $ 46,339 and $59,751 , respectively.

The Company’s capital expenditures consist largely of IT hardware and software purchased to maintain or upgrade its management information systems.

9 unchanged sentences

Cash receipts were automatically applied against any outstanding borrowings.

During the three months ended March 31, 2025 and 2024, the Company borrowed incremental amounts that were each repaid in full.

These borrowings for the three months ended March 31, 2025 and 2024 totaled $ 732 and $ 8,349 , respectively;

During the six months ended June 30, 2025 and 2024, the Company borrowed incremental amounts that were each repaid in full.

These borrowings for the six months ended June 30, 2025 and 2024 totaled $ 732 and $ 10,560 , respectively;

however, at no time were the outstanding borrowings greater than the $ 50,000 limit under the credit facility.

The Company had no outstanding borrowings under the credit facility immediately prior to the expiration of the credit facility, or as of March 31, 2024.

The Company had no outstanding borrowings under the credit facility immediately prior to the expiration of the credit facility, or as of June 30, 2024.

Note 10–Supplier Finance Programs

5 unchanged sentences

The agreements with the financial institutions are collateralized by the inventory purchased through the financing agreements.

The Company’s outstanding payment obligations under the supplier finance programs, which are included in accounts payable on the condensed consolidated balance sheets, were $ 50,668 and $ 47,763 at March 31, 2025 and December 31, 2024, respectively.

The rollforward of the Company’s outstanding obligations confirmed as valid under the supplier finance programs for the three months ended March 31, 2025 is as follows (in thousands):

The Company’s outstanding payment obligations under the supplier finance programs, which are included in accounts payable on the condensed consolidated balance sheets, were $ 62,448 and $ 47,763 at June 30, 2025 and December 31, 2024, respectively.

The rollforward of the Company’s outstanding obligations confirmed as valid under the supplier finance programs for the six months ended June 30, 2025 is as follows (in thousands):

Confirmed obligations outstanding at December 31, 2024

1 unchanged sentence

Confirmed invoices paid

Confirmed obligations outstanding at March 31, 2025

Confirmed obligations outstanding at June 30, 2025

Note 11–Subsequent Events

The One Big Beautiful Bill Act, or OBBBA, was enacted on July 4, 2025.

The OBBBA includes significant provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions.

The legislation has multiple effective dates, with certain provisions effective in 2025 and others implemented through future years.

We are currently assessing its impact on our consolidated financial statements.

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-Q

Item 1. Financial Statements