ScanSource, Inc.

Welcome to the ScanSource quarterly earnings conference call. All lines have been placed in a listen-only mode until the question and answer session. Today's call is being recorded. If anyone has any objections, you may disconnect at this time. I would now like to turn the call over to Mary Gentry, Senior Vice President, Finance and Treasurer. Madam, you may begin.

Good morning, and thank you for joining us. Our call will include prepared remarks from Mike Bauer, our chair and CEO, and Steve Jones, our chief financial officer. We will review our operating results for the quarter and then take your questions. We posted an earnings infographic that accompanies our comments and webcast in the investor relations section of our website. As you know, certain statements in our press release infographic and on this call are forward-looking statements and subject to risks and uncertainties that could cause actual results to differ materially from expectations. These risks and uncertainties include the factors identified in our earnings release and in our Form 10-K for the year ended June 30, 2024. Forward-looking statements represent our views only as of today, and ScanSource disclaims any duty to update these statements except as required by law. During our call, we will discuss both GAAP and non-GAAP results and have provided reconciliations on our website and in our Form 8-K. I'll now turn the call over to Mike.

Thanks, Mary. Thanks, everyone, for joining us today. The soft demand environment is lasting longer than we expected, and large deals remained a challenge in Q2. After our Q1 sequential quarter growth, we expected sequential quarter growth for Q2, but that did not happen, and instead net sales declined 4%. However, in a soft demand environment, we delivered gross profit growth and a strong gross profit margin. We are executing our hybrid distribution strategy, providing flexibility and choice with multiple sales models for hardware, SaaS, connectivity, and cloud. Our channel partners trust us to broaden their technology offerings and enable them to sell more of the technology stack, including devices, software, services, to meet the end customer's requirements. In addition, we give our channel partners the opportunity to build a successful stream of recurring revenue that will result in a more profitable and sustainable business. With our recent acquisitions, we have expanded recurring revenue opportunities for our channel partners. We acquired Resourcive, our advisory business, to build the channel model of the future to drive more value by understanding end customer needs. This includes increased offerings of next-gen technologies like CX, cybersecurity, and AI. We have a plan to develop tools at Resourcive that will also enable our Intellisys channel partners to more efficiently serve the technology needs of end customers. After our first full quarter of operations with Advantix, a managed connectivity experience MCX provider, We are excited about the reception of this opportunity by our channel partners. This represents a recurring revenue opportunity for many of our VARs and a great example of a hybrid solution combining devices and recurring revenue. The Advantix solution is a high margin recurring revenue add-on to mobile devices and a way to add more value in the barcode and mobility market. We also see the Advantix solution as a way to drive hardware demand by opening up new hybrid opportunities. Looking ahead, we are well positioned for profitable growth when demand returns. I'll now turn the call over to Steve to take you through our financial results and our outlook for fiscal year 2025. Thanks, Mike.