PC Connection Inc., a direct marketer of computer-related products, had a good first quarter, reporting net sales of $225 million, compared with $168.6 million for the same period last year. Net income also went up–from $3 million in the first quarter of 1998 to $4.4 million.
However, gross profit margin as a percentage of net sales went down–to 12%, compared with 13% last year. This was mostly due to growth of systems and outbound telemarketing sales, which generally carry lower margins, the company said.
Outbound telemarketing sales jumped by more than 50% to $128.7 million, compared with $85.3 million last year. Inbound sales totaled $84.3 million–an 8.3% increase over the first quarter of 1998.
Internet sales totaled $12 million, reflecting a 13% rise. The Internet now contributes 5.4% of total company net sales.
COO Wayne Wilson said in a statement that the firm mailed “a near record number of catalogs” during the quarter, while adding 60 outbound corporate telemarketing account managers.
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