By Connor Hart

Shares of ScanSource declined after the company said profit and revenue fell in its fiscal second quarter, dragged down by continued soft demand and a more-cautious technology spending environment.

The stock fell 11%, to $44.60, in afternoon trading Thursday. Shares are up 13% in the past year.

The cloud-technology company said net income fell to $17.1 million, or 70 cents a share, for its quarter ended Dec. 31, from $32.7 million, or $1.29 a share, a year earlier.

Adjusted earnings came in at 85 cents a share, missing the 91 cents a share of analysts, according to FactSet.

Second-quarter revenue fell to $747.5 million from $884.8 million last year.

Chief Executive Mike Baur said the soft demand environment has lasted longer than the company expected, and that completing large deals remains a challenge.

The company normally experiences an uptick in business in December, due to its focus on closing deals before the end of the year. "We thought that we would have a typical increase in large deals," Baur said, adding that these deals didn't materialize.

Despite this challenge, Baur said he believes the company can hit its fiscal outlook.

ScanSource backed its guidance for the fiscal year, ending in June, calling for revenue of $3.1 billion to $3.5 billion and adjusted earnings before interest, taxes, depreciation and amortization of $140 million to $160 million. Analysts polled by FactSet are looking for revenue of $3.23 billion and adjusted Ebitda of $148 million.

Write to Connor Hart at connor.hart@wsj.com

(END) Dow Jones Newswires

January 30, 2025 14:23 ET (19:23 GMT)

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