30 Connection Proprietary & Confidential. Not for publication or redistribution © 2018 Connection All Rights Reserved. PC Connection, Inc. & SubsidiariesBusiness Segments – Sales & Margin RECONCILIATION OF CHANGES IN REVENUE STANDARD FOR SEGMENT NET SALES (Unaudited, in thousands) Three Months Ended June 30, ChangeAs Presented ChangePrevious Revenue Standard 2018 2017 Amount Percent Amount Percent Net sales As Presented Impact of NewRevenue Standard Previous Revenue Standard Business Solutions $ 270,042 $ 41,260 $ 311,302 $ 296,420 $ (26,378) (8.9%) $ 14,882 5.0% Enterprise Solutions 301,065 47,977 349,042 302,077 (1,012) (0.3%) 46,965 15.5% Public Sector Solutions 135,463 23,962 159,425 151,295 (15,832) (10.5%) 8,130 5.4% Total $ 706,570 $ 113,199 $ 819,769 $ 749,792 $ (43,222) (5.8%) $ 69,977 9.3% RECONCILIATION OF CHANGES IN REVENUE STANDARD FOR SEGMENT GROSS PROFITS (Unaudited, in thousands) Three Months Ended June 30, ChangeAs Presented ChangePrevious Revenue Standard 2018 2017 Amount Percent Amount Percent Gross profits AsPresented Impact of NewRevenue Standard Previous Revenue Standard Business Solutions $ 47,329 $ 784 $ 48,113 $ 46,277 $ 1,052 2.3% $ 1,836 4.0% Enterprise Solutions 43,256 618 43,874 37,107 6,149 16.6% 6,767 18.2% Public Sector Solutions 16,883 - 16,883 16,286 597 3.7% 597 3.7% Total $ 107,468 $ 1,402 $ 108,870 $ 99,670 $ 7,798 7.8% $ 9,200 9.2% RECONCILIATION OF CHANGES IN REVENUE STANDARD FOR SEGMENT GROSS MARGINS (Unaudited, in thousands) Three Months Ended June 30, ChangeAs Presented ChangePrevious Revenue Standard 2018 2017 Amount Amount Gross margins AsPresented Impact of NewRevenue Standard Previous Revenue Standard Business Solutions 17.5% (207) 15.5% 15.6% 191 (16) Enterprise Solutions 14.4% (180) 12.6% 12.3% 208 29 Public Sector Solutions 12.5% (187) 10.6% 10.8% 170 (17) Total 15.2% (193) 13.3% 13.3% 192 (1)