Exhibit 99.1
[INSIGHT LOGO]
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NASDAQ: NSIT FOR IMMEDIATE RELEASE
WEDNESDAY, JULY 17, 2002
INSIGHT ENTERPRISES, INC. ANNOUNCES
ANTICIPATED SECOND QUARTER 2002 RESULTS
TEMPE, ARIZONA - JULY 17, 2002 - INSIGHT ENTERPRISES, INC. (NASDAQ: NSIT) (the
"Company") today announced that it expects net sales for the second quarter of
2002 to be approximately $737 million compared to $505 million in the second
quarter of 2001. Second quarter diluted earnings per share are expected to be
between $0.26 and $0.29, compared to $0.26 in the same period last year. The
Company previously stated that it expected net sales and diluted earnings per
share to be between $720 million and $760 million and $0.31 and $0.35,
respectively. These results reflect three acquisitions made by the Company
during Q4 2001 and Q2 2002. The Company is a holding company with two operating
units, Insight Direct Worldwide, Inc. ("Insight") and Direct Alliance
Corporation.
The disappointing Q2 2002 results are due to the operating results experienced
by Insight's United Kingdom operations, which had operating losses in Q2 2002
compared to operating earnings in Q1 2002. It was not until the consolidation
process that it was determined that actual results were substantially lower than
expected. According to Timothy A. Crown, Chief Executive Officer, "Net sales in
the United Kingdom declined from $113 million in Q1 2002 to $89 million in Q2
2002, or 21%. The decline in net sales occurred primarily in the large
enterprise sector. Additionally, due to strong competitive pressures and reduced
demand, the gross profit percentage in the United Kingdom for Q2 2002 was lower
than expected."
Mr. Crown continued, "Effective today, both the president and chief operating
officer of Insight's United Kingdom operations have resigned and we have
replaced them with other executives from the Company who will operate the
business until permanent replacements are found."
Additional information will be provided when the Company reports its second
quarter results on July 25, 2002.
Certain statements in this release may be "forward-looking statements" within
the meaning of The Private Securities Litigation Reform Act of 1995. These
forward-looking statements may include projections of matters that affect sales,
gross profit, operating expenses or net earnings; projections of capital
expenditures; projections for growth; hiring plans; plans for future operations;
financing needs or plans; plans relating to our products; and assumptions
relating to the foregoing. Forward-looking statements 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 information. Some of the
important factors that could cause our actual results to differ materially from
those projected in forward-looking statements made by us include, but are not
limited to, the following: our ability to integrate Comark successfully and in a
timely manner including the conversion to one common information systems
platform, general economic and computer industry conditions, competition,
integration of past and future acquisitions, reliance on information systems,
reliance on suppliers, changes in supplier reimbursement programs, management of
growth, changing methods of distribution, rapid change in product standards,
inventory obsolescence, dependence on key personnel and sales or use tax
collection. These factors are discussed in greater detail under "Factors That
May Affect Future Results And Financial Condition" in the Company's Annual
Report on Form 10-K for the year ended December 31, 2001, as filed with the
Securities and Exchange Commission.
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Insight Enterprises, Inc. 1305 W. Auto Drive Tempe, Arizona 480-902-1001
FAX 480-350-1141
Page 2
July 17, 2002
About Insight
INSIGHT ENTERPRISES, INC., a Fortune 1000 company, is a holding company composed
of the following operating units: INSIGHT DIRECT WORLDWIDE, INC. ("Insight") is
a leading global direct marketer of computers, hardware and software, offering a
broad line of more than 200,000 brand name products primarily to businesses in
the United States, Canada, and the United Kingdom. Insight sells its products
via a staff of customer-dedicated account executives utilizing proactive
outbound telephone-based sales, a customer-focused direct sales force,
electronic commerce and electronic marketing and via the Internet. DIRECT
ALLIANCE CORPORATION is a business process outsourcing organization providing
marketplace solutions in the areas of direct marketing, direct sales, finance
and logistics using state-of-the-art proprietary technology, infrastructure and
processes. For additional information about Insight Enterprises, Inc., call
(480) 902-1001 in the United States or visit www.insight.com.
CONTACTS: STANLEY LAYBOURNE KAREN MCGINNIS
CHIEF FINANCIAL OFFICER, SENIOR VICE PRESIDENT-
SECRETARY AND TREASURER FINANCE
TEL. 480-350-1142 TEL. 480-333-3074
EMAIL slaybour@insight.com EMAIL kmcginni@insight.com
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Insight Enterprises, Inc. 1305 W. Auto Drive Tempe, Arizona 480-902-1001
FAX 480-350-1141