Insight expects drop in 1Q performance

Insight Enterprise shares fall after hours on forecast of declining 1Q performance

Associated Press

TEMPE, Ariz. (AP) -- Insight Enterprises Inc.'s shares sank in after-hours trading Thursday after the information-technology company said it expects its first-quarter revenue and profit will fall.

The Arizona-based company said it expects to earn between 22 and 27 cents per share for the quarter that ended March 31. That does not include approximately $2.7 million, or $1.9 million accounting for taxes, in severance and restructuring expenses tied to reorganization and job cuts.

Insight said its revenue may fall 5 percent to $1.2 billion because of poor sales in North America and weaker profit margins overseas.

Analysts had forecast earnings of 34 cents per share on revenue of $1.23 billion.

President and CEO Ken Lamneck said that based on the company's recent performance, management is reviewing opportunities to improve its business in these two regions but remains committed to its long-term strategy to expand and invest in other key markets.

The company said it will have no further comment until May 1, when it reports its full results for the quarter.

Shares of Insight Enterprises fell 3 percent after-hours to $17.96 on the news.

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