ScanSource (SCSC) 8-K Scansource Achieves Record Quarterly Sales

Exhibit 99.1

FOR IMMEDIATE RELEASE

Contact:	Richard P. Cleys
	VP and CFO
	ScanSource, Inc.
	(864) 286-4358

SCANSOURCE ACHIEVES RECORD QUARTERLY SALES

Company Reports Fourth Quarter and Fiscal Year End Results

GREENVILLE, SC — August 19, 2010—ScanSource, Inc. (NASDAQ:SCSC), the leading international distributor of AIDC (automatic identification and data capture), point of sale, communications, and electronic security products for the reseller market, today announced complete financial results for its fourth quarter and fiscal year ended June 30, 2010.

Quarter ended June 30, 2010:			Fiscal Year ended June 30, 2010:
Net sales	$	582 million	Net sales	$	2,115 million
Net income	$	14.0 million	Net income	$	48.8 million
Diluted EPS	$	0.52 per share	Diluted EPS	$	1.82 per share

“The ScanSource teams delivered excellent results for the June quarter across all product lines,” said Mike Baur, CEO, ScanSource, Inc. “This quarter we sold to an increasing number of customers and were pleased to see a resurgence of big deals.”

For the quarter ended June 30, 2010, net sales increased 32% to $582 million compared to $441 million for the quarter ended June 30, 2009. Operating income also increased by 5% to $21 million from $20 million in the comparable prior year quarter. Net income increased 12.4% to $14 million for the quarter ended June 30, 2010 versus $12.5 million for the quarter ended June 30, 2009. The effective tax rate for the quarter was 33.1%, compared to 37.4% for the fourth quarter of the prior year. Diluted earnings per share increased 10.6% to $0.52 in the current quarter compared to $.47 in the fourth quarter of the prior year.

ScanSource Reports Fourth Quarter Results

For the year ended June 30, 2010, net sales increased $267 million, or 14.4% to $2.1 billion, compared to the prior year ended June 30, 2009. Fiscal year operating income also increased 2.2% to $75.8 million from $74.1 million for the prior fiscal year. Net income increased 2.4% to $48.8 million compared to $47.7 million for the prior fiscal year. The effective tax rate for the year was 35.6% compared to 37.0% for the prior fiscal year. Diluted earnings per share increased 1.7% to $1.82 compared to $1.79 in the prior fiscal year.

Forecast for Next Quarter

The Company announced its revenue forecast for the first quarter of fiscal 2011. ScanSource expects net revenues for the September 2010 quarter could range from $555 million to $575 million.

Safe Harbor Statement

This press release contains comments that are “forward looking” statements that involve risks and uncertainties; these statements are subject to the safe harbor created by the Private Securities Litigation Reform Act of 1995. Any number of important factors could cause actual results to differ materially from anticipated results, including, but not limited to macroeconomic circumstances that could impact our business, such as currency fluctuations, continued adverse capital and credit market conditions and a prolonged economic downturn. For more information concerning factors that could cause actual results to differ from anticipated results, see the Company’s annual report on Form 10-K for the year ended June 30, 2009 filed with, and the Company’s annual report on Form 10-K for the year ended June 30, 2010 to be filed with, the Securities and Exchange Commission.

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ScanSource Reports Fourth Quarter Results

About ScanSource, Inc.

ScanSource, Inc. (NASDAQ:SCSC) is a leading international distributor of specialty technology products, consisting of seven sales units in North America, Latin America and Europe.

ScanSource POS and Barcoding in North America, Latin America and Europe delivers AIDC and POS solutions; Catalyst Telecom in the U.S. and ScanSource Communications in North America and Europe, provide voice, video and converged communications equipment; and ScanSource Security in North America offers physical security solutions. Founded in 1992, the company ranks #881 on the Fortune 1000. For more information, call the toll-free sales telephone number at 800.944.2432 or visitwww.scansourceinc.com.

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ScanSource Reports Fourth Quarter Results

ScanSource, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets (Unaudited)

(in thousands)

	June 30,			June 30,
	2010			2009*
Assets
Current assets:
Cash and cash equivalents	$	34,605		$	127,664
Accounts receivable, less allowance of $21,907 at June 30, 2010 $16,883 at June 30, 2009		357,749			291,037
Inventories		346,610			216,829
Prepaid expenses and other assets		16,762			18,032
Deferred income taxes		12,066			8,735
Total current assets		767,792			662,297
Property and equipment, net		23,528			21,035
Goodwill		33,785			34,087
Other assets, including identifiable intangible assets		34,645			31,212
Total assets	$	859,750		$	748,631
Liabilities and Shareholders’ Equity
Current liabilities:
Current portion of long-term debt	$	—		$	—
Short-term borrowings		—			—
Accounts payable		287,864			228,408
Accrued expenses and other liabilities		35,027			30,443
Income taxes payable		7,948			3,799
Total current liabilities		330,839			262,650
Deferred income taxes		—			—
Long-term debt		30,429			30,429
Borrowings under revolving credit facility		—			—
Other long-term liabilities		11,631			10,106
Total liabilities		372,899			303,185
Shareholder’s equity:
Common stock		111,951			104,461
Retained earnings		386,634			337,822
Accumulated other comprehensive income		(11,734	)		3,163
Total shareholders’ equity		486,851			445,446
Total liabilities and shareholders’ equity	$	859,750		$	748,631

* Derived from audited financial statements at June 30, 2009.

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ScanSource Reports Fourth Quarter Results

ScanSource, Inc. and Subsidiaries

Condensed Consolidated Income Statements (Unaudited)

(in thousands, except per share information)

	Quarter ended June 30,						Twelve months ended June 30,
	2010			2009			2010			2009 *
Net sales	$	582,342		$	441,236		$	2,114,979		$	1,847,969
Cost of goods sold		525,519			387,753			1,896,052			1,639,121
Gross profit		56,823			53,483			218,927			208,848
Operating expenses:
Selling, general and administrative expenses		35,840			33,505			143,151			134,730
Operating income		20,983			19,978			75,776			74,118
Other expense (income):
Interest expense		365			366			1,472			2,176
Interest income		(228	)		(286	)		(1,387	)		(1,405	)
Other, net		(150	)		(78	)		(50	)		(2,307	)
Other expense (income)		(13	)		2			35			(1,536	)
Income before income taxes		20,996			19,976			75,741			75,654
Provision for income taxes		6,947			7,473			26,929			27,966
Net income	$	14,049		$	12,503		$	48,812		$	47,688
Per share data:
Net income per common share, basic	$	0.53		$	0.47		$	1.83		$	1.80
Weighted-average shares outstanding, basic		26,669			26,542			26,605			26,445
Net income per common share, diluted	$	0.52		$	0.47		$	1.82		$	1.79
Weighted-average shares outstanding, diluted		26,937			26,704			26,869			26,588

* Derived from audited financial statements at June 30, 2009.

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