PC Connection Inc (CNXN) 2025 Q3 法說會逐字稿

Good afternoon, and welcome to the third quarter 2025 connection earnings conference call. My name is Marvin, and I'll be the coordinator for today. (Operator Instructions) As a reminder, this conference call is the property of Connection and may not be recorded or rebroadcast without specific permission from the company.

下午好，歡迎參加 2025 年第三季互聯業務收益電話會議。我叫馬文，我將擔任今天的協調員。（操作員說明）提醒各位，本次電話會議的所有權歸 Connection 所有，未經本公司明確許可，不得錄音或轉播。

On the call today are Tim McGrath, President and Chief Executive Officer; and Tom Baker, Senior Vice President and Chief Financial Officer. I'll now turn the call over to the company.

今天參加電話會議的有總裁兼執行長提姆·麥格拉斯，以及資深副總裁兼財務長湯姆·貝克。現在我將把電話轉接給該公司。

Thank you, operator, and good afternoon, everyone. I will now read our cautionary note regarding forward-looking statements. Any statements or references made during the conference call that are not statements of historical fact may be deemed to be forward-looking statements. Various remarks that management may make about the company's future expectations, plans and prospects constitute forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995.

謝謝接線員，大家下午好。現在我將閱讀我們關於前瞻性聲明的警示性說明。在電話會議期間所作出的任何非歷史事實的陳述或提及，均可被視為前瞻性陳述。管理階層對公司未來預期、計畫和前景所作的各種評論，均構成 1995 年《私人證券訴訟改革法案》安全港條款所指的前瞻性陳述。

Actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors, including those discussed in the Risk Factors section of the company's annual report on Form 10-K for the year ended December 31, 2024, which is on file with the Securities and Exchange Commission as well as in other documents that the company files from the commission from time to time.

由於各種重要因素，實際結果可能與這些前瞻性聲明所指出的結果有重大差異，這些因素包括公司截至 2024 年 12 月 31 日止年度的 10-K 表格年度報告「風險因素」部分中討論的因素（該報告已提交給美國證券交易委員會），以及公司不時向該委員會提交的其他文件中討論的因素。

In addition, any forward-looking statements represent management's view as of today and should not be relied upon as representing views as of any subsequent date. While the company may elect to update forward-looking statements at some point in the future, the company specifically disclaims any obligation to do so other than as required by law, even if estimates change. And therefore, you should not rely on these forward-looking statements as representing management's views as of any date subsequent to today.

此外，任何前瞻性陳述僅代表管理階層截至今日的觀點，不應被視為代表任何後續日期的觀點。雖然公司未來可能會選擇更新前瞻性聲明，但公司明確聲明，除法律要求外，即使估計發生變化，公司也沒有義務這樣做。因此，您不應將這些前瞻性陳述視為管理階層在今天之後任何日期的觀點。

During this call, non-GAAP financial measures will be discussed. A reconciliation between any non-GAAP financial measure discussed and its most directly comparable GAAP measure is available in today's earnings release and on the company's website at www.connection.com. Please note that unless otherwise stated, all references to third quarter 2025 comparisons are being made against the third quarter of 2024.

本次電話會議將討論非GAAP財務指標。今日發布的獲利報告以及公司網站 www.connection.com 上提供了所有討論的非GAAP財務指標與其最直接可比較的GAAP指標之間的調節表。請注意，除非另有說明，所有提及的2025年第三季比較均與2024年第三季進行比較。

Today's call is being webcast and will be available on Connection's website. The earnings release will be available on the SEC website at www.sec.gov and in the Investor Relations section of our website at www.ir.connection.com.

今天的電話會議將進行網路直播，並可在 Connection 的網站上觀看。獲利報告將在美國證券交易委員會網站 www.sec.gov 和我們網站投資者關係部分 www.ir.connection.com 上發布。

I would now like to turn the call over to our host, Tim McGrath, President and CEO. Tim?

現在我想把電話交給我們的主持人，總裁兼執行長提姆·麥格拉斯。提姆？

Thank you, Samantha. Good afternoon, everyone, and thank you for joining us today for Connection's Q3 2025 conference call. I'll begin this afternoon with an overview of our third quarter results and highlights of our performance. Then Tom will walk us through a more detailed look at our financials.

謝謝你，薩曼莎。各位下午好，感謝各位今天參加 Connection 2025 年第三季電話會議。今天下午我將首先概述我們第三季的業績和亮點。然後湯姆將帶領我們更詳細地了解我們的財務狀況。

I'm pleased to share that our third quarter was another solid one for the company. We continue to execute well, delivered record gross profit and expanded our margins despite some expected headwinds in parts of the business. Our overall results this quarter highlight our success in higher-value solutions, deeper customer relationships and consistent operational execution.

我很高興地告訴大家，公司第三季業績依然穩健。儘管部分業務面臨一些預期的不利因素，但我們依然保持了良好的運營，實現了創紀錄的毛利，並擴大了利潤率。本季整體業績凸顯了我們在高價值解決方案、更深層的客戶關係和持續營運執行方面的成功。

Let's start with the overall results. Gross profit increased 2.4% year-over-year to $138.6 million, the highest in our company's history. Gross margin expanded 90 basis points to 19.6%, driven by strong growth in cloud software, cybersecurity and services, all recognized on a net basis. Our Business Solutions and Enterprise Solutions segments both performed well with gross profit up 7.8% and 3.4%, respectively. As anticipated, the public sector business experienced some challenges this quarter given the timing of some large federal projects and ongoing funding uncertainty at the federal, state and local levels. We believe the budget issues have caused a temporary pause, not a shift in our long-term demand.

我們先來看整體結果。毛利年增 2.4%，達到 1.386 億美元，創公司歷史新高。毛利率成長 90 個基點至 19.6%，主要得益於雲端軟體、網路安全和服務業務的強勁成長，所有業務均以淨額確認。我們的商業解決方案和企業解決方案業務部門均表現良好，毛利分別成長了7.8%和3.4%。正如預期的那樣，由於一些大型聯邦計畫的時間表以及聯邦、州和地方各級持續存在的資金不確定性，公共部門業務在本季度遇到了一些挑戰。我們認為預算問題只是造成了暫時的停滯，並沒有改變我們的長期需求。

Total net sales were $709.1 million, down 2.2% from last year. The decline is largely the result of a decrease in net sales in the Public Sector Solutions segment, driven by large federal projects previously mentioned that did not repeat in Q3. If you exclude those, underlying sales were healthy, especially in cloud, storage and services.

總淨銷售額為7.091億美元，比去年下降2.2%。此次下滑主要是由於公共部門解決方案部門淨銷售額下降所致，而這主要是由於先前提到的大型聯邦計畫在第三季沒有再次出現所致。如果排除這些因素，基礎銷售情況良好，尤其是在雲端運算、儲存和服務領域。

Now let's take a look at the segments. In Business Solutions, we saw another strong performance. Net sales grew 1.7% to $256.8 million, while gross profit increased 7.8% to $68 million. Gross margin reached a record 26.5%, up 150 basis points year-over-year. These results reflect the continued strength of our cloud and cybersecurity offerings, two areas in which we built recurring profitable revenue streams.

現在我們來看看各個部分。在商業解決方案領域，我們看到了另一個強勁的表現。淨銷售額成長1.7%至2.568億美元，毛利成長7.8%至6,800萬美元。毛利率達到創紀錄的 26.5%，年增 150 個基點。這些結果反映了我們雲端運算和網路安全產品的持續強勁表現，這兩個領域是我們建立起持續獲利收入來源的領域。

In Public Sector Solutions, net sales were $132.5 million, down 24.3% from a year ago. The decline was driven by the timing of federal projects and reduced funding at the federal, state and local level. Even with lower revenue, gross margin increased 230 basis points to a record 17.2%. Thanks to a higher mix of cloud and cybersecurity solutions sales. Once funding cycles normalize, we expect this segment to rebound.

公共部門解決方案業務的淨銷售額為 1.325 億美元，比去年同期下降了 24.3%。下降的原因是聯邦計畫的時間安排以及聯邦、州和地方各級資金的減少。即使收入下降，毛利率仍增加了 230 個基點，達到創紀錄的 17.2%。由於雲端運算和網路安全解決方案的銷售額佔比提高。一旦融資週期恢復正常，我們預計這一領域將會反彈。

And in Enterprise Solutions, net sales grew 7.7% to $319.8 million, led by strong demand for advanced technologies and endpoint devices. Gross profit was up 3.4% to $47.8 million. Gross margin came in at 14.9%, down slightly due to changes in subscription license programs and software mix. The important takeaway is that we're continuing to win business in high-growth areas, particularly in AI infrastructure, data center modernization and edge computing.

在企業解決方案領域，淨銷售額成長 7.7% 至 3.198 億美元，主要得益於對先進技術和終端設備的強勁需求。毛利成長3.4%，達到4780萬美元。毛利率為 14.9%，由於訂閱許可計劃和軟體組合的變化而略有下降。最重要的結論是，我們正在高成長領域不斷贏得業務，尤其是在人工智慧基礎設施、資料中心現代化和邊緣運算領域。

Turning to profitability. Operating income was flat year-over-year, showing good cost discipline despite continued investments in areas of our business that will drive future growth. Net income was $24.7 million compared with $27.1 million last year, which included a onetime legal settlement and higher interest income. Diluted earnings per share came in at $0.97, down $0.05, while adjusted diluted earnings per share was also $0.97, flat from the prior year, another sign of earning consistency despite the challenges in the public sector environment.

轉向盈利。儘管我們持續投資於將推動未來成長的業務領域，但營業收入與去年持平，這表明我們保持了良好的成本控制。淨收入為 2,470 萬美元，而去年為 2,710 萬美元，其中包括一次性法律和解金和更高的利息收入。稀釋後每股收益為 0.97 美元，下降 0.05 美元；調整後稀釋後每股收益也為 0.97 美元，與上年持平，這再次表明，儘管公共部門環境面臨挑戰，但盈利仍然保持穩定。

Looking ahead, our strategy remains clear. We're focused on expanding our solutions-led business, deepening customer relationships and driving profitable growth in cloud, cybersecurity, AI and services. We're seeing strong engagement from customers who are modernizing their infrastructure and investing in AI-driven technologies. These are areas where we bring real customer value and where we expect to see continued momentum.

展望未來，我們的戰略依然明確。我們專注於拓展以解決方案為導向的業務，深化客戶關係，並在雲端運算、網路安全、人工智慧和服務領域推動獲利成長。我們看到，客戶對基礎設施進行現代化改造並投資人工智慧驅動技術展現了強烈的參與熱情。這些領域是我們能夠為客戶帶來真正價值的領域，也是我們期望能夠持續成長的領域。

While funding cycles and project timing can affect quarter-to-quarter results, we believe the long-term trends are all moving in the right direction. Our record gross profit, expanding margins and growing base of recurring and solution-driven revenue give us confidence as we finish the year and head into 2026.

雖然資金週期和專案進度可能會影響季度業績，但我們相信長期趨勢正在朝著正確的方向發展。我們創紀錄的毛利、不斷擴大的利潤率以及不斷增長的經常性收入和解決方案驅動型收入基礎，讓我們對即將結束的2026年充滿信心。

I'll now turn the call over to Tom to discuss additional financial highlights from our income statement, balance sheet and cash flow statement. Tom?

現在我將把電話交給湯姆，讓他來討論我們損益表、資產負債表和現金流量表中的其他財務亮點。湯姆？

Thanks, Tim. In the third quarter, SG&A expenses increased 2.9% year-over-year, primarily driven by higher personnel-related costs. We continue to take a disciplined approach to expense management. Notably, our headcount is down 2.8%, which has enabled us to keep our total payroll costs flat compared to last year. As a percentage of sales, SG&A increased 80 basis points to 15.3% of net sales compared to 14.5% in the prior year quarter, reflecting both the impact of higher benefit costs and sales mix dynamics.

謝謝你，提姆。第三季度，銷售、一般及行政費用年增 2.9%，主要原因是人員相關成本增加。我們繼續採取嚴格的費用管理方法。值得注意的是，我們的員工人數減少了 2.8%，這使我們能夠將總工資成本與去年持平。銷售、一般及行政費用佔銷售額的百分比從去年同期的 14.5% 上升 80 個基點至淨銷售額的 15.3%，這反映了福利成本上升和銷售組合動態變化的影響。

Operating income margin improved slightly to 4.3% compared to 4.1% last year, reflecting continued focus on profitability despite cost pressures. Interest income for the quarter was $3.7 million compared to $4.9 million last year, mainly due to lower average cash balances and lower interest rates during the period. Our effective tax rate for the quarter was 27.1%, up from 26% in the prior year.

儘管面臨成本壓力，但營業利潤率略微提高至 4.3%，高於去年的 4.1%，反映出公司繼續專注於獲利能力。本季利息收入為 370 萬美元，而去年同期為 490 萬美元，主要原因是本季平均現金餘額較低以及利率較低。本季實際稅率為 27.1%，高於上年度的 26%。

As a result, net income for the third quarter was $24.7 million compared to $27.1 million last year, a decrease of 8.6%. Diluted earnings per share were $0.97, down $0.05 year-over-year, while adjusted earnings per share remained flat at $0.97, demonstrating the underlying stability of our earnings profile.

因此，第三季淨收入為 2,470 萬美元，而去年同期為 2,710 萬美元，下降了 8.6%。稀釋後每股收益為 0.97 美元，年減 0.05 美元，而調整後每股收益保持不變，為 0.97 美元，這表明我們盈利狀況的基本穩定性。

On a trailing 12-month basis, adjusted EBITDA was $122.7 million compared to $123.6 million a year ago, essentially flat year-over-year, reflecting continued operational consistency. During the quarter, we returned capital to shareholders through both dividends and share repurchases. We paid a quarterly dividend of $0.15 per share and repurchased approximately 84,000 shares at an average price of $61.21 per share for a total cost of $5.1 million.

以過去 12 個月計算，調整後的 EBITDA 為 1.227 億美元，而去年同期為 1.236 億美元，與去年同期基本持平，反映出持續的營運穩定性。本季度，我們透過派發股利和股票回購的方式向股東返還了資本。我們按季度支付了每股 0.15 美元的股息，並以每股 61.21 美元的平均價格回購了約 84,000 股股票，總成本為 510 萬美元。

Year-to-date, we've repurchased over 1 million shares at an average price of $63.17 for a total cost of $65.4 million. At quarter end, $44.3 million remained available under our existing share repurchase authorization, providing continued flexibility to return capital to shareholders. We also announced today that our Board of Directors declared a quarterly dividend of $0.15 per share payable on November 28, 2025, to shareholders of record on November 11, 2025.

今年迄今，我們已回購超過 100 萬股股票，平均價格為每股 63.17 美元，總成本為 6,540 萬美元。截至季末，我們現有的股票回購授權下仍有 4,430 萬美元可用，這為我們繼續向股東返還資本提供了靈活性。我們今天也宣布，董事會已批准派發每股 0.15 美元的季度股息，將於 2025 年 11 月 28 日支付給 2025 年 11 月 11 日登記在冊的股東。

Turning to the balance sheet and cash flow. Operating cash flow for the first nine months of 2025 was $38 million. This reflects a $40 million increase in inventory and a $6.5 million increase in accounts receivable, partially offset by an $11.9 million increase in accounts payable. The increase in inventory was intentional, tied to our decision to stage inventory earlier in the year to support customer rollouts, and we continue to work that inventory down. The increase in accounts receivable was primarily due to the timing of customer payments.

接下來來看資產負債表和現金流量表。2025 年前九個月的經營現金流為 3,800 萬美元。這反映出庫存增加了 4,000 萬美元，應收帳款增加了 650 萬美元，但部分被應付帳款增加了 1,190 萬美元所抵銷。庫存增加是有意為之，與我們年初決定儲備庫存以支援客戶產品推廣有關，我們將繼續努力減少庫存。應收帳款增加主要是因為客戶付款時間的原因。

Cash generated from investing activities for the first nine months of 2025 totaled $49.3 million, driven by $108.8 million and proceeds from the sales of investments and $101.3 million in investment maturities, partially offset by $155.6 million of new investment purchases. Cash used in financing activities for the first nine months of 2025 was $77.8 million, reflecting our ongoing share repurchase activity of $65.5 million and dividend payments of $11.5 million to shareholders.

2025 年前九個月的投資活動產生的現金總額為 4,930 萬美元，其中 1.088 億美元來自投資出售所得，1.013 億美元來自投資到期，部分被 1.556 億美元的新投資購買所抵銷。2025 年前九個月用於融資活動的現金為 7,780 萬美元，其中包括 6,550 萬美元的持續股票回購活動和 1,150 萬美元的股東分紅。

We ended the quarter with a strong liquidity position, $399.2 million in cash, cash equivalents and short-term investments, which we believe provides ample flexibility to support our strategic priorities and shareholder returns going forward.

本季末，我們擁有強勁的流動性，現金、現金等價物和短期投資達 3.992 億美元，我們相信這為我們未來的戰略重點和股東回報提供了充足的靈活性。

Overall, we remain confident in the strength of our balance sheet, the resilience of our business model and our ability to execute with discipline. While we continue to manage through a dynamic cost environment, our focus remains on driving sustainable growth, improving operational efficiency and creating long-term value for shareholders. We believe our continued commitment to prudent capital allocation, margin discipline and strategic investment positions us well for the remainder of the year and beyond.

總體而言，我們對公司的資產負債表實力、商業模式的韌性以及我們嚴謹的執行能力仍然充滿信心。儘管我們仍在應對不斷變化的成本環境，但我們的重點仍然是推動永續成長、提高營運效率並為股東創造長期價值。我們相信，我們持續堅持審慎的資本配置、利潤率紀律和策略性投資，將使我們在今年餘下的時間以及未來幾年都處於有利地位。

I will now turn the call back over to Tim to discuss current market trends.

現在我將把電話轉回給提姆，讓他討論當前的市場趨勢。

Thanks, Tom. We executed well on our three-part growth strategy, driving data center modernization, digital workplace transformation and supply chain solutions against the backdrop of a challenging economic environment.

謝謝你，湯姆。在充滿挑戰的經濟環境下，我們成功執行了三部分成長策略，推動了資料中心現代化、數位化工作場所轉型和供應鏈解決方案。

Let me take a moment to walk through how our key verticals performed. In retail, we saw another strong quarter. Net sales grew 25% and gross profit was up 42% year-over-year. Retailers are really leaning into improving customer experience and several large brands chose Connection because of our proven ability to deliver tailored vertical market solutions.

讓我花點時間介紹一下我們主要垂直領域的表現。零售業又迎來了一個強勁的季度。淨銷售額年增 25%，毛利年增 42%。零售商正大力提升客戶體驗，許多大型品牌選擇 Connection 是因為我們擁有提供量身定制的垂直市場解決方案的成熟能力。

In financial services, net sales were up 23% and gross profit increased 19% year-over-year. The focus here remains on modernizing infrastructure and improving resiliency, areas where our solutions and expertise continue to resonate.

金融服務業淨銷售額年增 23%，毛利潤年增 19%。我們仍然致力於基礎設施現代化和提高韌性，而這些領域正是我們解決方案和專業知識能夠繼續發揮作用的領域。

Manufacturing grew 8% in net sales and 28% in gross profit year-over-year. This segment continues to navigate a lot of macro challenges from trade dynamics and inflation to workforce shortages and higher input costs. We've heard from many of our customers that these pressures are affecting demand and future outlooks.

製造業淨銷售額年增 8%，毛利潤年增 28%。該產業持續面臨許多宏觀挑戰，包括貿易動態、通貨膨脹、勞動力短缺和投入成本上升等。我們從許多客戶那裡了解到，這些壓力正在影響需求和未來前景。

That said, manufacturers are turning to Connection as a trusted partner to help modernize their operations, upgrade their legacy systems, and adopt AI, cybersecurity and new infrastructure solutions that their in-house teams may not be equipped to manage on their own.

也就是說，製造商們正在將 Connection 視為值得信賴的合作夥伴，以幫助他們實現營運現代化、升級傳統系統，並採用人工智慧、網路安全和新的基礎設施解決方案，而他們的內部團隊可能沒有能力自行管理這些解決方案。

As we look ahead, we're encouraged by several technology trends driving our pipeline and customer activity. The PC refresh continues as customers gradually replace their aging systems with higher-performing AI solutions. Data center modernization is gaining momentum, especially as customers repatriate workloads from the public cloud to get more cost predictability, better security and the benefits of server consolidation.

展望未來，我們受到推動我們業務成長和客戶活躍度的幾項技術趨勢的鼓舞。隨著客戶逐步以效能更高的AI解決方案取代老舊系統，PC更新換代仍在持續。資料中心現代化正在加速推進，尤其是在客戶將工作負載從公有雲遷移回資料中心以獲得更高的成本可預測性、更好的安全性和伺服器整合優勢的情況下。

AI-driven demand across the edge, security and smart endpoints continue to expand. Unstructured data at the edge is fueling demand for next-generation storage solutions. We're continuing to grow our technical services organization, helping customers design, implement, migrate and manage their IT infrastructure end-to-end. And we're investing in training and tools to ensure our teams are fully equipped to guide customers through AI and next-generation architectures.

AI驅動對邊緣運算、安全和智慧終端的需求持續成長。邊緣非結構化資料正在推動對下一代儲存解決方案的需求。我們正在不斷壯大我們的技術服務團隊，幫助客戶設計、實施、遷移和管理其端到端的 IT 基礎架構。我們正在投資培訓和工具，以確保我們的團隊能夠充分指導客戶使用人工智慧和下一代架構。

As we move into the fourth quarter of 2025, our backlog remains strong. In fact, it ended Q3 at its highest level in nearly two years, largely driven by our enterprise business. We feel confident about where we're headed, and we're continuing to invest in projects and programs that strengthen our sales capabilities, service delivery and systems, all while maintaining disciplined about cost management and productivity.

進入 2025 年第四季度，我們的訂單積壓情況依然強勁。事實上，第三季末的業績達到了近兩年來的最高水平，這主要得益於我們的企業業務。我們對自己的發展方向充滿信心，並將繼續投資於能夠增強銷售能力、服務交付和系統的專案和計劃，同時保持對成本管理和生產力的嚴格控制。

We're positioning Connection for sustained long-term growth, and we believe we can outperform the US IT market by 200 basis points for the rest of the year. Our strategy remains tightly aligned with how customers are evolving in the way they deploy, consume and manage technology. We help them navigate the complexity, modernize their infrastructure, and make confident informed decisions.

我們正在為 Connection 的持續長期成長做好準備，我們相信在今年剩餘的時間裡，我們的表現可以比美國 IT 市場高出 200 個基點。我們的策略始終與客戶在部署、使用和管理技術方面的變化緊密保持一致。我們幫助他們應對複雜情況，實現基礎設施現代化，並做出自信且明智的決策。

In a world where technology changes fast, expertise wins, and that's where Connection continues to differentiate.

在科技日新月異的世界裡，專業知識才是致勝之道，而這正是 Connection 持續脫穎而出的原因。

We'll now entertain your questions. Operator?

現在我們將回答各位的問題。操作員？

(Operator Instructions)

（操作說明）

Adam Tindle, Raymond James

亞當廷德爾，雷蒙德詹姆斯

I just wanted to start with some of those last comments there, Tim, where you were talking about some of the forward indicators that looked very positive here. I just wonder how you're thinking about year-end and Q4 being a typical budget flush year. What you're seeing here in the first month of Q4 relative to what you experienced in Q3? And is there a case to be made here that we might return to growth on the top line in Q4?

提姆，我想先談談你剛才提到的一些非常正面的前瞻性指標。我只是好奇你如何看待年底和第四季通常是預算充裕的時期。與第三季相比，您在第四季第一個月看到的情況有何不同？那麼，我們是否有理由相信，第四季營收能夠恢復成長？

Well, thanks, Adam. So yes, in our Enterprise segment, for the first time in many quarters, there is talk of budget flush. We do see our pipeline building there and a number of projects and opportunities that could well pass through the fourth quarter. So enterprise has some good solid momentum.

謝謝你，亞當。所以，是的，在我們的企業部門，幾個季度以來第一次出現了預算充裕的情況。我們看到我們的專案儲備正在增加，並且有很多項目和機會可能會在第四季度得到落實。因此，企業發展勢頭良好。

Also, I think our Business Solutions group has some good momentum and forecasting a good Q4. The wildcard remains our Public Sector business. The question really becomes when will that recover? We know that's going to happen. The timing, though, is still a big question mark.

此外，我認為我們的業務解決方案團隊發展勢頭良好，預計第四季度業績將不錯。最大的變數仍然是我們的公共部門業務。真正的問題是，這種情況何時才能恢復？我們知道這一定會發生。不過，具體時間仍是個很大的未知數。

Got it. Okay. And I wanted to ask about the backlog. I think you talked about Q3 backlog was the largest in years. I wonder just what's leading to that? Is this something -- I would imagine you would have liked to have shipped more, obviously, in the quarter. if I look at sort of the revenue numbers.

知道了。好的。我想問一下積壓的工作狀況。我想你之前說過，第三季的積壓訂單是多年來最多的。我想知道究竟是什麼原因導致了這種情況？我猜想，從營收數據來看，你們肯定希望本季能出貨更多。

So is this something that's -- that backlog is building because of incremental supply challenges? Or is it more the customers putting off projects and not wanting to accept delivery? Just some of the rationale for why that backlog build is happening and when you think it ultimately unentangles here?

所以，積壓訂單的增加是因為供應逐漸出現挑戰嗎？或者，更可能是客戶延後項目，不願收貨？請解釋一下造成積壓工作的原因，以及您認為這些問題最終何時會得到解決？

Well, thanks, Adam. I'll start, and I'll let Tom come in behind me. But clearly, the majority of our backlog is all customer-driven. I think it's solid. I don't feel there's any risk in our backlog, but it's absolutely customer-driven and the delays on the customer side.

謝謝你，亞當。我先來，讓湯姆跟在我後面。但很顯然，我們積壓的訂單大部分都是由客戶驅動的。我覺得它很結實。我不認為我們的積壓訂單有任何風險，但這完全是由客戶驅動的，延誤也出在客戶身上。

Adam, I'd say a couple of things. One, when you look at our revenue line, we had a lot of software and cloud in our numbers this quarter. And while that's a real headwind for the revenue line, the -- obviously, it came through in the gross margins were over 19.5%. So I think when you look at the gross profit line growing, 7.8% for PSG was pretty good and Enterprise numbers up as well.

亞當，我有幾點想說。首先，從我們的收入數據來看，本季我們的收入中有很多來自軟體和雲端服務。雖然這對營收來說是一個真正的阻力，但顯然，毛利率超過了 19.5%。所以我覺得，從毛利成長來看，PSG 的毛利成長了 7.8%，相當不錯，Enterprise 的表現也有所提升。

So I feel like things are better maybe than you look at the first glance that revenue line with the notable exception of Public Sector, which we had a really large rollout last year, and some of that will fall into next quarter as well. So we're thinking sales mid-single digits next quarter year-on-year. That's kind of how we're thinking.

所以我覺得情況可能比你第一眼看到的收入線要好，但公共部門是個明顯的例外，我們去年在公共部門進行了大規模的推廣，其中一些也將在下個季度實現。因此，我們預計下一季銷售額將年比實現個位數成長。我們也是這麼想的。

Okay. That's super helpful. Yeah, and that makes sense to kind of disaggregate and look at gross profit dollars. I guess maybe just last one for me real quick, and this is probably way too early to tell. But as you start to hear back from your vendors and your sales force and sort of the early indications on 2026, Tim, you mentioned PC refresh continuing.

好的。這太有幫助了。是的，這樣分解並查看毛利金額是有意義的。我想這可能是我最後一個問題了，現在下結論可能還太早。但是，隨著你開始收到供應商和銷售團隊的回饋，以及關於 2026 年的早期跡象，提姆，你提到 PC 更新換代仍在繼續。

I think there's some fear that, that's going to create some difficult comparisons in 2026. And just as we think about the year in total and budgets, sort of the moving parts and how your early take is on what IT spending will look like next year?

我認為有人擔心，這將導致2026年出現一些難以比較的情況。就像我們思考全年的整體情況和預算一樣，各種變動因素，以及您對明年 IT 支出狀況的初步看法是什麼？

So to begin with, we talk a lot about gross profit being a better indicator just based on the amount of solutions that are delivered on a net basis. But clearly, 2025 didn't prove out to be the year that the analysts and the pundits anticipated. And if we begin with the PC refresh, the latest numbers show that in terms of conversion to Windows 11, about 60% of the population have made that conversion.

首先，我們經常談到毛利潤是一個更好的指標，因為它是基於淨交付的解決方案數量計算的。但很顯然，2025 年並沒有像分析師和專家們預期的那樣發展。如果我們從 PC 更新換代說起，最新數據顯示，在升級到 Windows 11 方面，約有 60% 的用戶已經完成了升級。

So we think the refresh will still continue, but definitely at a lower pace. We just didn't see Windows 11 get the adoption and the time lag that we did see with Windows 10. But still a case for refresh continues. And as you know, the productivity around the newer technology clearly makes that case.

所以我們認為更新換代還會持續，但速度一定會放緩。我們沒有看到 Windows 11 像 Windows 10 那樣廣泛採用，也沒有看到它出現像 Windows 10 那樣的推廣延遲。但更新換代的必要性依然存在。如你所知，新科技帶來的生產力提升已經充分證明了這一點。

And the same is true when we think about the data center server consolidation, for example, many of our customers are looking at the ability to take 10 servers and bring them down to 2 or 7 servers and bring them down to 1. The power savings alone offset a lot of that expense and the productivity gains and the improvements in security really make that a very strong value proposition.

同樣的情況也發生在我們考慮資料中心伺服器整合的時候，例如，我們的許多客戶都在考慮將 10 台伺服器減少到 2 台，或將 7 台伺服器減少到 1 台。單是節省的電費就能抵銷許多開支，而生產力的提升和安全性的改善，更使之成為非常有價值主張的產品。

So for 2026, we see continued growth in data center, continued growth in cloud, in cyber. And we see certainly AI PC perhaps leveling off, but will continue to deliver some good results for us. So overall, we're thinking about mid-single digit for 2026 with the understanding that could go well above that as things start to normalize.

因此，對於 2026 年，我們預計資料中心、雲端運算和網路安全將持續成長。我們看到人工智慧個人電腦的發展或許會趨於平穩，但仍會繼續為我們帶來一些不錯的成果。所以總的來說，我們認為 2026 年的成長率會達到個位數中段，但隨著情況開始正常化，成長率可能會遠高於這個數字。

Understood. That's helpful. Thank you.

明白了。那很有幫助。謝謝。

Thank you.

謝謝。

Anthony Lebiedzinski, Sidoti.

Anthony Lebiedzinski，Sidoti。

Nice to see the record performance for gross profit. So first, maybe if you could just comment on the cadence of your sales during the quarter and the I know there was some noise with the netting as well. But just overall, maybe can you speak about the demand trends that you saw as you went from July through September?

很高興看到毛利創下歷史新高。首先，您能否就本季的銷售節奏發表一下看法？我知道網具方面也存在一些問題。但總的來說，您能否談談您從 7 月到 9 月觀察到的需求趨勢？

Yeah. July was like 34%-ish, 33%. August was down a bit and then September proved to be the best of the quarter. I think it was like 35%. So I think that's pretty typical, Anthony, when I look back at the past few years.

是的。7 月大概是 34% 左右，33%。8 月略有下滑，而 9 月則成為本季表現最好的月份。我記得好像是35%。所以我覺得這很典型，安東尼，當我回顧過去幾年的時候。

Got you. Okay. Thanks, Tom. And then just thinking about the Public Sector, obviously, it was down here in the quarter. As far as it relates to the federal government shutdown, did that have -- is that having an impact on your fourth quarter numbers now? Or how do we think about the potential impact that may have?

抓到你了。好的。謝謝你，湯姆。然後，就公共部門而言，顯然，它位於本季的底部。就聯邦政府停擺而言，這是否對你們第四季的業績產生了影響？或者，我們如何看待這可能產生的潛在影響？

Oh, good afternoon, Anthony, So thanks. Obviously, the federal government being shut down does affect the quarter. We're trying to forecast when we think that will change. But for right now, we clearly have orders and products that we can't ship because there's nobody there to receive them. And the longer this goes on, the more that will challenge the Public Sector business in the quarter.

哦，下午好，安東尼，謝謝。顯然，聯邦政府停擺確實會對本季業績產生影響。我們正在嘗試預測這種情況何時會改變。但就目前而言，我們顯然有一些訂單和產品無法發貨，因為沒有人接收它們。這種情況持續的時間越長，對本季公共部門業務的挑戰就越大。

So we're hoping this gets resolved. And when it does, we're hoping that we have that demand catch up and we finish back on plan. But for right now, it's a big concern.

所以我們希望這個問題能夠解決。到那時，我們希望需求能夠趕上來，我們能夠按計劃完成任務。但就目前而言，這是一個很大的問題。

Understood. Okay. And I know, Tim, you also talked about your expectations for the fourth quarter and a little bit for next year. That was more on the, I guess, on the revenue side. As far as just thinking about gross margins and your ability to leverage expenses, how do we think about just overall profitability as it relates to gross margins and operating margins here going forward?

明白了。好的。我知道，提姆，你也談到了你對第四季的預期，以及對明年的一些展望。我想，那更多是與收入方面有關的問題。如果只考慮毛利率和費用槓桿能力，那麼展望未來，我們該如何看待與毛利率和營業利潤率相關的整體獲利能力呢？

Yes. So the caveat of Public Sector is a little bit of a wildcard. We're thinking kind of mid-single digits year-over-year next quarter for growth. The margins -- the gross margins, I don't think will be as high as they were this quarter because I don't see all the same mix of cloud and software revenues coming through that could netted down. So I think probably year-on-year margins will be about flat. And then spending next quarter, depending on how high the revenues so probably be a little bit higher than this quarter in terms of G&A.

是的。所以，公共部門這個例外情況有點不確定。我們預計下個季度年增率將在個位數中等水準。利潤率——毛利率，我認為不會像本季那麼高，因為我看不到所有雲端和軟體收入都能像之前那樣抵銷掉這些收入。所以我認為同比利潤率可能會基本持平。然後，下個季度的支出將取決於收入的高低，因此在一般及行政費用方面可能會比本季度略高一些。

Okay. Got you. And then lastly for me, as far as just thinking about your strong cash position, are you still looking at potential acquisitions? How do we think about that?

好的。抓到你了。最後，就我個人而言，考慮到您雄厚的現金實力，您是否仍在考慮潛在的收購目標？我們該如何看待這個問題？

Thanks. So there's a lot of activity out there. We continue to look at tuck-in acquisitions that would enhance some of our solutions capability. And so we've got our eye out there. We're looking. But at this point, nothing to report.

謝謝。所以現在有很多活動。我們將繼續尋找能夠增強我們部分解決方案能力的補充性收購機會。所以我們已經密切注意著情況了。我們正在尋找。但目前尚無任何消息需要報告。

Understood. Well, thank you very much and best of luck.

明白了。非常感謝，祝你好運。

Thank you so much. Thank you.

太感謝了。謝謝。

Thank you. This concludes the question-and-answer session. I'll now turn it back to Tim McGrath for close the remarks.

謝謝。問答環節到此結束。現在我將把發言權交還給提姆·麥格拉斯，讓他做總結發言。

Thank you, Marvin. So I'd like to thank all of our customers, vendors, shareholders for their continued support and once again, our coworkers for their efforts and extraordinary dedication. I'd also like to thank all of you listening to the call this afternoon. Your time and your interest in Connection are appreciated. Have a great evening.

謝謝你，馬文。因此，我要感謝所有客戶、供應商、股東的持續支持，並再次感謝我們的同事們的努力和非凡的奉獻精神。我還要感謝今天下午收聽電話會議的各位。感謝您抽出時間並對 Connection 感興趣。祝你有個美好的夜晚。

Thank you for your participation in today's conference to just conclude the program, you may now disconnect.

感謝您參加今天的會議，會議到此結束，您可以斷開連接了。