Insight Enterprises, Inc. Reports First Quarter 2008 Results

FINANCIAL SUMMARY TABLE (IN THOUSANDS, EXCEPT PER SHARE DATA AND PERCENTAGES) Three Months Ended March 31, ------------------------------------------------------------------
---- Insight Enterprises, Inc. 2008 2007 % change ----------------------------------------------- ----------- ---------- Net sales $1,107,789 $1,123,975 (1%) Gross profit $ 153,155 $ 153,175 - Earnings from operations $ 18,301 $ 23,417 (22%) Operating margin 1.7% 2.1% Net earnings from continuing operations $ 10,520 $ 12,296 (14%) Diluted EPS from continuing operations $ 0.22 $ 0.25 (12%) Net earnings $ 10,520 $ 17,268 (39%) Diluted EPS $ 0.22 $ 0.35 (37%) North America ------------------------------------ Net sales $ 766,424 $ 777,201 (1%) Gross profit $ 104,015 $ 111,916 (7%) Earnings from operations $ 11,787 $ 17,146 (31%) EMEA ------------------------------------ Ne
t sales $ 318,222 $ 327,376 (3%) Gross profit $ 45,375 $ 38,471 18% Earnings from operations $ 6,954 $ 6,460 8% APAC ------------------------------------ Net sales $ 23,143 $ 19,398 19% Gross profit $ 3,765 $ 2,788 35% Loss from operations $ (440) $ (189) (133%)

INSIGHT ENTERPRISES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (IN THOUSANDS, EXCEPT PER SHARE DATA) (UNAUDITED) Three Months Ended March 31, ----------------------- 2008 2007 ----------- ----------- Net sales $1,107,789 $1,123,975 Costs of goods sold 954,634 970,800 ----------- ----------- Gross profit 153,155 153,175 Operating expenses: Selling and administrative expenses 132,954 129,758 Severance and restructuring expenses 1,900 - ----------- ----------- Earnings from operations 18,301 23,417 Non-operating (income) expense: Interest income (601) (658) Interest expense 2,716 4,305 Net foreign currency exchange gain (937) (654) Other expense, net 319 217 ----------- ----------- Earnings from continuing operations before income taxes 16,804 20,207 Income tax expense 6,284 7,911 ----------- ----------- Net earnings from continuing operations 10,520 12,296 Net earnings from a discontinued operation - 4,972 ----------- ----------- Net earnings $ 10,520 $ 17,268 =========== =========== Net earnings per share - Basic: Net earnings from continuing operations $ 0.22 $ 0.25 Net earnings from a discontinued operation - 0.10 ----------- ----------- Net earnings per share $ 0.22 $ 0.35 =========== =========== Net earnings per share - Diluted: Net earnings from continuing operations $ 0.22 $ 0.25 Net earnings from a discontinued operation - 0.10 ----------- ----------- Net earnings per share $ 0.22 $ 0.35 =========== =========== Shares used in per share calculations: Basic 48,540 49,010 =========== =========== Diluted 48,905 49,291 =========== ===========

INSIGHT ENTERPRISES, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (IN THOUSANDS) (UNAUDITED) March 31, December 31, 2008 2007 ------------- ------------- ASSETS Current assets: Cash and cash equivalents $ 105,696 $ 56,718 Accounts receivable, net 812,371 1,072,612 Inventories 88,869 98,863 Inventories not available for sale 27,251 21,450 Deferred income taxes 21,792 22,020 Other current assets 36,975 38,916 -------------- ------------- Total current assets 1,092,954 1,310,579 Property and equipment, net 158,541 158,467 Goodwill 311,995 306,742 Intangible assets, net 79,329 80,922 Deferred income taxes 181 392 Other assets 13,189 10,076 ------------- ------------- $ 1,656,189 $ 1,867,178 ============= ============= LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 465,736 $ 685,578 Accrued expenses and other current liabilities 113,057 113,891 Current portion of long-term debt - 15,000 Deferred revenue 40,004 42,885 ------------- ------------- Total current liabilities 618,797 857,354 Long-term debt 203,500 187,250 Deferred income taxes 31,272 27,305 Other liabilities 20,339 20,075 ------------- ------------- 873,908 1,091,984 ------------- ------------- Stockholders' equity: Preferred stock - - Common stock 482 485 Additional paid-in capital 384,386 386,139 Retained earnings 343,086 340,641 Accumulated other comprehensive income - foreign currency translation adjustments 54,327 47,929 ------------- ------------- Total stockholders' equity 782,281 775,194 ------------- ------------- $ 1,656,189 $ 1,867,178 ============= =============

INSIGHT ENTERPRISES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (IN THOUSANDS) (UNAUDITED) Three Months Ended March 31, --------------------- 2008 2007 ---------- ---------- Cash flows from operating activities: Net earnings from continuing operations $ 10,520 $ 12,296 Plus: net earnings from a discontinued operation - 4,972 ---------- ---------- Net earnings 10,520 17,268 Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation and amortization 8,464 8,913 Provision for losses on accounts receivable 668 884 Write-downs of inventories 1,697 1,654 Non-cash stock-based compensation 2,439 2,265 Gain on sale of discontinued operation - (7,937) Excess tax benefit from employee gains on stock-based compensation (108) (41) Deferred income taxes 4,441 (2,676) Changes in assets and liabilities: Decrease in accounts receivable 275,543 182,155 Decrease (increase) in inventories 2,554 (3,989) Decrease in other current assets 2,691 2,360 Increase in other assets (195) (5,993) Decrease in accounts payable (238,788) (135,422) Decrease in deferred revenue (3,927) (12,768) Increase (decrease) in accrued expenses and other liabilities 1,160 (7,294) ---------- ---------- Net cash provided by operating activities 67,159 39,379 ---------- ---------- Cash flows from investing activities: Proceeds from sale of a discontinued operation, net of direct expenses (900) 28,694 Purchases of property and equipment (6,441) (8,376) ---------- ---------- Net cash (used in) provided by investing activities (7,341) 20,318 ---------- ---------- Cash flows from financing activities: Borrowings on long-term financing facility 122,000 121,000 Repayments on long-term financing facility (117,000) (163,000) Repayments on term loan (3,750) (3,750) Net repayments on line of credit - (7,000) Proceeds from sales of common stock under employee stock plans 2,976 2,363 Excess tax benefit from employee gains on stock-based compensation 108 41 Payment of payroll taxes on stock-based compensation through shares withheld (1,943) - Repurchases of common stock (14,999) - Increase (decrease) in book overdrafts 458 (31,456) ---------- ---------- Net cash used in financing activities (12,150) (81,802) ---------- ---------- Foreign currency exchange effect on cash flows 1,310 (432) ---------- ---------- Increase (decrease) in cash and cash equivalents 48,978 (22,537) Cash and cash equivalents at beginning of period 56,718 54,697 ---------- ---------- Cash and cash equivalents at end of period $ 105,696 $ 32,160 ========== ==========

INSIGHT ENTERPRISES, INC. AND SUBSIDIARIES QUARTERLY SELECT OPERATING SEGMENT STATISTICS (UNAUDITED) Three Months Ended March 31, ------------------- North America 2008 2007 Change ----------------------------------- --------- --------- -------- Number of shipping days 64 64 - Number of account executives 1,292 1,274 1% Net sales per account executive(a) $580,405 $613,661 (5%) Gross profit per account executive(b) $ 78,770 $ 88,366 (11%) Sales mix (as a % of net sales):(c) Networking and connectivity 12% 11% 11% (d) Notebooks and PDAs 11% 11% (1%)(d) Servers and storage 10% 12% (16%)(d) Desktops 8% 7% 20% (d) Printers 4% 5% (16%)(d) Memory and processors 3% 4% (27%)(d) Supplies and accessories 4% 5% (24%)(d) Monitors and video 5% 5% (4%)(d) Miscellaneous 9% 8% 2% (d) --------- --------- Hardware 66% 68% (4%)(d) Software 31% 29% 4% (d) Services 3% 3% 11% (d) --------- --------- 100% 100% ========= ========= EMEA -----------------------------------[FEED_CRLF
]Number of shipping days(e) 62 64 (2 days) Number of account executives 605 513 (f) 18% Net sales per account executive(a) $541,193 $662,034 (18%) Gross profit per account executive(b) $ 77,169 $ 77,798 - Sales mix (as a % of net sales):(c) Networking and connectivity 4% 4% 12% (d) Notebooks and PDAs 9% 8% 2% (d) Servers and storage 8% 8% (3%)(d) Desktops 4% 4% (12%)(d) Printers 3% 4% (10%)(d) Memory and processors 1% 2% (36%)(d) Supplies and accessories 4% 4% (3%)(d) Monitors and video 4% 4% 1% (d) Miscellaneous 3% 3% (14%)(d) --------- --------- Hardware 40% 41% (4%)(d) Software 59% 58% (2%)(d) Services 1% 1% (4%)(d) --------- --------- 100% 100% ========= =========

(a) Calculated as net sales for the quarter divided by the average number of account executives. The average number of account executives is calculated as the number of account executives at the end of the quarter plus the number of account executives at the beginning of the quarter divided by two. (b) Calculated as gross profit for the quarter divided by the average number of account executives. The average number of account executives is calculated as the number of account executives at the end of the quarter plus the number of account executives at the beginning of the quarter divided by two. (c) Beginning in the three months ended March 31, 2008, we have combined servers with storage in reporting our sales mix and are reporting desktops separately to conform with how we internally analyze our results. All prior period information has been reclassified for comparative purposes. (d) Represents growth/decline in category net sales. (e) Represents shipping days for the United Kingdom as it makes up the largest percentage of net sales in our EMEA segment. (f) Number of account executives for the three months ended March 31, 2007 has been changed to conform to the current period presentation. This presentation also conforms to the definition of an account executive in our North America operating segment.