Insight Enterprises (NSIT) 8-K Insight Enterprises, Inc. Reports Third Quarter 2011 Results

Exhibit 99.1

FOR IMMEDIATE RELEASE Nasdaq: NSIT

INSIGHT ENTERPRISES, INC. REPORTS THIRD QUARTER
2011 RESULTS

TEMPE, AZ — November 2, 2011 — Insight Enterprises, Inc. (Nasdaq: NSIT)(the “Company”) today reported results of operations for the quarter ended September 30, 2011.

Third Quarter Highlights

For the third quarter of 2011 compared to the third quarter of 2010:

• Net sales increased 6% to $1.24 billion.

• Gross profit increased 6% to $163.5 million.

• Earnings from operations increased 12% to $27.9 million, or 2.3% of net sales.

• Net earnings increased 19% to $17.2 million.

• Diluted earnings per share increased 23% to $0.38.

• Repurchased approximately 2,024,000 shares of the Company’s common stock for $35.9 million (an average price of $17.71 per share), completing a $50 million share repurchase program.

“Solid sales performance combined with significant operating leverage led to double digit earnings growth and operating margin expansion in the third quarter” stated Ken Lamneck, President and Chief Executive Officer. “We executed very well to optimize our sales performance and continued to tightly manage our costs during the quarter.”

SEGMENT OVERVIEW

In North America, net sales were $913.6 million for the third quarter of 2011, up 5% from the third quarter of 2010. Net sales of hardware and services increased 7% and 15%, respectively, year over year, while net sales of software decreased 1% year to year. Gross profit of $114.6 million was up 4% year over year with gross margin decreasing to 12.5% from 12.7% in the third quarter of 2010. Selling and administrative expenses in North America increased 1% in the third quarter of 2011 compared to the third quarter of 2010 to $89.5 million. The North America segment had $476,000, $293,000 net of tax, of severance and restructuring expenses during the third quarter of 2011, compared to $199,000, $123,000 net of tax, of severance and restructuring expenses during the third quarter of 2010. As a result, earnings from operations in North America were $24.6 million, or 2.7% of net sales, in the third quarter of 2011, compared to $21.3 million, or 2.4% of net sales, in the third quarter of 2010.

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Insight Enterprises, Inc.     6820 South Harl Avenue     Tempe, Arizona 85283     480-902-1001     FAX 480-760-8958

Insight Q3 2011 Results, Page 2 November 2, 2011

The Company’s EMEA operating segment reported net sales of $289.1 million for the third quarter of 2011, up 8% in U.S. dollars compared to the third quarter of 2010. Excluding the effects of foreign currency movements, net sales increased 2% year over year. Net sales of hardware, software and services increased 4%, 10% and 22%, respectively, year over year, all in U.S. dollars. Excluding the effects of foreign currency movements, hardware sales were flat year to year, while software and services sales increased 3% and 15%, respectively, compared to the third quarter of 2010. Gross profit of $42.1 million was up 10% in U.S. dollars, 4% excluding the effects of foreign currency movements, while gross margin increased to 14.6% for the third quarter of 2011 from 14.2% in the third quarter of 2010. Selling and administrative expenses in EMEA in the third quarter of 2011 were up 10%, or $3.6 million, compared to the third quarter of 2010 in U.S. dollars and, excluding the effects of foreign currency movements, were up 4% year over year. EMEA recorded $53,000, $37,000 net of tax, of severance and restructuring expenses during the third quarter of 2011, compared to $99,000, $69,000 net of tax, of severance and restructuring expenses for the third quarter of 2010. As a result, earnings from operations in EMEA were $2.7 million, or 0.9% of net sales, in the third quarter of 2011 compared to $2.2 million, or 0.8% of net sales, in the third quarter of 2010.

The Company’s APAC operating segment reported net sales of $35.3 million for the third quarter of 2011, up 17% from the third quarter of 2010 in U.S. dollars, 3% excluding the effects of foreign currency movements. Gross profit was $6.8 million, an increase of 13% year over year in U.S. dollars, 1% excluding the effects of foreign currency movements, while gross margin decreased to 19.1% for the third quarter of 2011 from 19.8% in the third quarter of 2010. Selling and administrative expenses in APAC increased 31% year over year in U.S. dollars, 15% excluding the effects of foreign currency movements. As a result, earnings from operations in APAC were $599,000, or 1.7% of net sales, in the third quarter of 2011, compared to $1.3 million, or 4.3% of net sales, in the third quarter of 2010.

Throughout this “Segment Overview” section, the Company refers to changes in net sales, gross profit and selling and administrative expenses in EMEA and APAC excluding the effects of foreign currency movements. In computing these changes and percentages, the Company compares the current year amount as translated into U.S. dollars under the applicable accounting standards to the prior year amount in local currency translated into U.S. dollars utilizing the average translation rate for the current quarter.

Net of tax amounts referenced above were computed using the statutory tax rate for the taxing jurisdictions in the operating segment in which the related expenses were recorded.

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Insight Enterprises, Inc.     6820 South Harl Avenue     Tempe, Arizona 85283     480-902-1001     FAX 480-760-8958

Insight Q3 2011 Results, Page 3 November 2, 2011

UPDATED GUIDANCE

The Company expects demand for hardware and services in the remainder of 2011 to be consistent with levels experienced in the third quarter. Additionally, the Company expects software sales to increase from the third quarter due to seasonality in that category. As a result, the Company expects diluted earnings per share of $0.48 to $0.54 in the fourth quarter of 2011. This outlook reflects the effect of partner program changes and an effective tax rate of approximately 36% in the fourth quarter. For the full year, the Company expects diluted earnings per share to be between $1.95 to $2.01, excluding severance and restructuring expenses incurred during the year.

CONFERENCE CALL AND WEBCAST

The Company will host a conference call and live web cast today at 5:00 p.m. ET to discuss third quarter 2011 results of operations. A live web cast of the conference call (in listen-only mode) will be available on the Company’s web site atwww.insight.com, and a replay of the web cast will be available on the Company’s web site for a limited time following the call. To listen to the live web cast by telephone, call 1-888-396-2298 if located in the U.S., 617-847-8708 for international callers, and enter the access code 54416354.

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Insight Enterprises, Inc.     6820 South Harl Avenue     Tempe, Arizona 85283     480-902-1001     FAX 480-760-8958

Insight Q3 2011 Results, Page 4 November 2, 2011

Financial Summary Table
(in thousands, except per share data and percentages)

	Three Months Ended September 30,							Nine Months Ended September 30,
	2011		2010		% change			2011		2010		% change
Insight Enterprises, Inc.
Net sales	$	1,238,019	$	1,169,197		6	%	$	3,926,875	$	3,470,731		13	%
Gross profit	$	163,515	$	154,645		6	%	$	530,174	$	473,495		12	%
Earnings from operations	$	27,915	$	24,836		12	%	$	105,158	$	86,756		21	%
Net earnings	$	17,166	$	14,432		19	%	$	65,581	$	50,511		30	%
Diluted EPS	$	0.38	$	0.31		23	%	$	1.41	$	1.08		31	%
North America
Net sales	$	913,593	$	871,204		5	%	$	2,749,955	$	2,424,999		13	%
Gross profit	$	114,638	$	110,536		4	%	$	356,237	$	329,107		8	%
Earnings from operations	$	24,623	$	21,325		15	%	$	77,207	$	67,724		14	%
EMEA
Net sales	$	289,130	$	267,813		8	%	$	1,028,986	$	944,316		9	%
Gross profit	$	42,118	$	38,132		10	%	$	149,191	$	125,876		19	%
Earnings from operations	$	2,693	$	2,225		21	%	$	21,619	$	14,633		48	%
APAC
Net sales	$	35,296	$	30,180		17	%	$	147,934	$	101,416		46	%
Gross profit	$	6,759	$	5,977		13	%	$	24,746	$	18,512		34	%
Earnings from operations	$	599	$	1,286		(53	%)	$	6,332	$	4,399		44	%

	North America									EMEA									APAC
	Three Months Ended									Three Months Ended									Three Months Ended
	September 30,									September 30,									September 30,
							%									%									%
	2011			2010			change*			2011			2010			change*			2011			2010			change*
Sales Mix
Hardware		67	%		66	%		7	%		37	%		38	%		4	%		2	%		1	%		89	%
Software		26	%		28	%		(1	%)		61	%		60	%		10	%		93	%		97	%		12	%
Services		7	%		6	%		15	%		2	%		2	%		22	%		5	%		2	%		176	%
		100	%		100	%		5	%		100	%		100	%		8	%		100	%		100	%		17	%

* Represents growth/decline in category net sales on a U.S. dollar basis.

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Insight Enterprises, Inc.     6820 South Harl Avenue     Tempe, Arizona 85283     480-902-1001     FAX 480-760-8958

Insight Q3 2011 Results, Page 5 November 2, 2011

FORWARD-LOOKING INFORMATION

Certain statements in this release and the related conference call and web cast are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements, including the Company’s expectations about the amount of its 2011 diluted earnings per share, demand for hardware, software and services, the effect and timing of partner program changes and the Company’s effective tax rate for 2011, are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. Future events and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking statements. Some of the important factors that could cause the Company’s actual results to differ materially from those projected in any forward-looking statements, include, but are not limited to, the following, which are discussed in “Risk Factors” in Part I, Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2010:

• the Company’s reliance on partners for product availability and competitive products to sell as well as competition with the Company’s partners;

• the Company’s reliance on partners for marketing funds and purchasing incentives;

• disruptions in the Company’s information technology (“IT”) systems and voice and data networks, including risks and costs associated with the integration and upgrade of the Company’s IT systems;

• general economic conditions, including concerns regarding the Company’s ability to collect its accounts receivable and client credit constraints;

• actions of the Company’s competitors, including manufacturers and publishers of products the Company sells;

• changes in the IT industry and/or rapid changes in product standards;

• failure to comply with the terms and conditions of the Company’s commercial and public sector contracts;

• stockholder litigation and regulatory proceedings related to the restatement of the Company’s consolidated financial statements;

• the availability of future financing and the Company’s ability to access and/or refinance its credit facilities;

• the security of the Company’s electronic and other confidential information;

• the variability of the Company’s net sales and gross profit;

• the risks associated with the Company’s international operations;

• exposure to changes in, interpretations of, or enforcement trends related to tax rules and regulations;

• the Company’s dependence on key personnel; and

• intellectual property infringement claims and challenges to the Company’s registered trademarks and trade names.

Additionally, there may be other risks that are otherwise described from time to time in the reports that the Company files with the Securities and Exchange Commission. Any forward-looking statements in this release should be considered in light of various important factors, including the risks and uncertainties listed above, as well as others. The Company assumes no obligation to update, and does not intend to update, any forward-looking statements. The Company does not endorse any projections regarding future performance made by third parties.

Contacts:	Glynis Bryan	Helen Johnson
	Chief Financial Officer	Senior VP, Treasurer
	Tel. 480-333-3390	Tel. 480-333-3234
	Email glynis.bryan@insight.com	Email helen.johnson@insight.com

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Insight Enterprises, Inc.     6820 South Harl Avenue     Tempe, Arizona 85283     480-902-1001     FAX 480-760-8958

Insight Q3 2011 Results, Page 6 November 2, 2011

INSIGHT ENTERPRISES, INC. AND SUBSIDIARIES
Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2011			2010			2011			2010
Net sales	$	1,238,019		$	1,169,197		$	3,926,875		$	3,470,731
Costs of goods sold		1,074,504			1,014,552			3,396,701			2,997,236
Gross profit		163,515			154,645			530,174			473,495
Operating expenses:
Selling and administrative expenses		135,071			129,511			420,558			385,052
Severance and restructuring expenses		529			298			4,458			1,687
Earnings from operations		27,915			24,836			105,158			86,756
Non-operating (income) expense:
Interest income		(536	)		(161	)		(1,294	)		(467	)
Interest expense		1,753			1,899			5,209			5,957
Net foreign currency exchange loss (gain)		633			130			(531	)		743
Other expense, net		451			348			1,240			1,097
Earnings before income taxes		25,614			22,620			100,534			79,426
Income tax expense		8,448			8,188			34,953			28,915
Net earnings	$	17,166		$	14,432		$	65,581		$	50,511
Net earnings per share:
Basic	$	0.38		$	0.31		$	1.43		$	1.09
Diluted	$	0.38		$	0.31		$	1.41		$	1.08
Shares used in per share calculations:
Basic		44,886			46,268			46,001			46,193
Diluted		45,417			46,865			46,550			46,749

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Insight Enterprises, Inc.     6820 South Harl Avenue     Tempe, Arizona 85283     480-902-1001     FAX 480-760-8958

Insight Q3 2011 Results, Page 7 November 2, 2011

INSIGHT ENTERPRISES, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(In thousands)
(Unaudited)

	September 30,		December 31,
	2011		2010
ASSETS
Current assets:
Cash and cash equivalents	$	98,680	$	123,763
Accounts receivable, net		910,134		1,135,951
Inventories		115,169		106,734
Inventories not available for sale		33,827		50,677
Deferred income taxes		20,094		23,283
Other current assets		28,100		49,289
Total current assets		1,206,004		1,489,697
Property and equipment, net		137,373		141,399
Goodwill		16,474		16,474
Intangible assets, net		60,108		69,081
Deferred income taxes		65,262		73,796
Other assets		15,350		12,836
	$	1,500,571	$	1,803,283
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	576,920	$	881,688
Accrued expenses and other current liabilities		141,094		187,457
Current portion of long-term debt		1,012		997
Deferred revenue		37,351		67,373
Total current liabilities		756,377		1,137,515
Long-term debt		156,358		91,619
Deferred income taxes		1,830		5,011
Other liabilities		23,745		24,167
		938,310		1,258,312
Stockholders’ equity:
Preferred stock		—		—
Common stock		439		463
Additional paid-in capital		358,107		377,277
Retained earnings		188,471		149,349
Accumulated other comprehensive income — foreign currency translation adjustments		15,244		17,882
Total stockholders’ equity		562,261		544,971
	$	1,500,571	$	1,803,283

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Insight Enterprises, Inc.     6820 South Harl Avenue     Tempe, Arizona 85283     480-902-1001     FAX 480-760-8958

Insight Q3 2011 Results, Page 8 November 2, 2011

INSIGHT ENTERPRISES, INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)

	Nine Months Ended September 30,
	2011			2010
Cash flows from operating activities:
Net earnings	$	65,581		$	50,511
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization		29,033			28,515
Provision for losses on accounts receivable		3,387			546
Write-downs of inventories		6,319			4,875
Write-off of computer software development costs		1,390			—
Non-cash stock-based compensation		5,579			5,139
Excess tax benefit from employee gains on stock-based compensation.		(1,569	)		(912	)
Deferred income taxes		7,683			11,762
Changes in assets and liabilities:
Decrease in accounts receivable		230,630			143,709
Decrease (increase) in inventories		1,901			(32,676	)
Decrease (increase) in other current assets		21,021			(6,558	)
Increase in other assets		(2,169	)		(1,557	)
Decrease in accounts payable		(281,221	)		(110,705	)
Decrease in deferred revenue		(30,937	)		(11,414	)
Decrease in accrued expenses and other liabilities		(46,566	)		(43,727	)
Net cash provided by operating activities		10,062			37,508
Cash flows from investing activities:
Payment of additional purchase price consideration for Calence		—			(5,123	)
Purchases of property and equipment		(16,883	)		(12,631	)
Net cash used in investing activities		(16,883	)		(17,754	)
Cash flows from financing activities:
Borrowings on senior revolving credit facility		971,000			910,136
Repayments on senior revolving credit facility		(905,500	)		(892,636	)
Borrowings on accounts receivable securitization financing facility		40,000			45,000
Repayments on accounts receivable securitization financing facility		(40,000	)		(45,000	)
Payments on capital lease obligation		(746	)		(681	)
Net repayments under inventory financing facility		(33,214	)		(9,952	)
Payment of deferred financing fees		—			(490	)
Proceeds from sales of common stock under employee stock plans		38			49
Excess tax benefit from employee gains on stock-based compensation		1,569			912
Payment of payroll taxes on stock-based compensation through shares withheld		(2,544	)		(1,260	)
Repurchases of common stock		(50,000	)		—
Net cash (used in) provided by financing activities		(19,397	)		6,078
Foreign currency exchange effect on cash flows		1,135			(134	)
(Decrease) increase in cash and cash equivalents		(25,083	)		25,698
Cash and cash equivalents at beginning of period		123,763			68,066
Cash and cash equivalents at end of period	$	98,680		$	93,764

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Insight Enterprises, Inc.      6820 South Harl Avenue     Tempe, Arizona 85283     480-902-1001     FAX 480-760-8958