PCM, Inc. announced unaudited consolidated earnings results for the fourth quarter and year ended December 31, 2017. For the quarter, the company reported net sales of $563,448,000 against $586,627,000 a year ago. Operating loss was $41,000 compared to operating profit of $9,207,000 a year ago. Loss from before income taxes was $2,242,000 compared to income from before income taxes was $7,657,000 a year ago. Net loss was $2,595,000 or $0.22 per diluted share compared to net income of $4,710,000 or $0.37 per diluted share a year ago. EBITDA was $3,762,000 compared to $13,069,000 a year ago. Adjusted EBITDA was $8,428,000 compared with $14,553,000 a year ago. Adjusted income before income taxes was $3,456,000 compared with $10,577,000 a year ago. Non-GAAP net income was $2,091,000 compared with $6,506,000 a year ago. Non-GAAP diluted earnings per share were $0.17 compared with $0.51 a year ago.

For the year, the company reported net sales of $2,193,436,000 against $2,250,587,000 a year ago. Operating profit was $11,441,000 compared to $34,791,000 a year ago. Income from before income taxes was $4,075,000 compared to $28,708,000 a year ago. Net income was $3,091,000 or $0.24 per diluted share compared to $17,593,000 or $1.40 per diluted share a year ago. EBITDA was $26,150,000 compared to $50,575,000 a year ago. Adjusted EBITDA was $43,571,000 compared with $54,779,000 a year ago. Adjusted income before income taxes was $25,929,000 compared with $38,738,000 a year ago. Non-GAAP net income was $15,687,000 compared with $23,740,000 a year ago. Non-GAAP diluted earnings per share were $1.20 compared with $1.89 a year ago. Net cash used in operating activities was $65,474,000 compared to net cash provided by operating activities was $96,513,000 a year ago. Purchases of property and equipment were $17,325,000 compared with $8,705,000 a year ago.

For the year 2018, the company expected sales, gross profit and adjusted EPS, with the major headwinds that impacted 2017 top line growth behind and as The company expects to begin to reap the benefits of 2017 investments in security, cloud, hybrid data center and managed services. The company are forecasting 2018 revenue growth of approximately 5% over 2017, which is above projected IT spending growth rates. 2018 is off to a good start, with growth for the first two months in line with this forecast, including a return to growth in gross billings for public sector segment. Gross margin is expected to remain at the increased levels the company achieved in 2017 as the company continue focus on sales of advanced solutions and services. As such, the company is forecasting non-GAAP earnings per share in 2018 to grow significantly and be in the range of $2.00 - $2.10, including the results of the UK segment. The company continued to expect full year profit for 2018 and effective tax rate in 2018 to be in the 29% range. In 2018, The company expects working capital trends to return to normalized levels, which should provide a boost to cash flow in 2018. The company currently are targeting interest expense to rise nearly $2 million in 2018 over 2017 levels. The company currently expect that it will have reduced revenues with no change to gross profit dollars by upwards of $20 million more in 2017 or less then 1% of sales. 2018 revenue growth of approximately 5% over 2017, which is above provide protected IT spending growth rates.