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ScanSource, Inc. Sales Units

Automatic Identification and Data Capture (AIDC) and Point-of-Sale (POS)

 - ScanSource - North America 
 - ScanSource - Europe
 - ScanSource - Latin America

Electronic Security

 - ScanSource Security

Voice, Video, Data, Communications

 - Catalyst Telecom 
 - ScanSource Communications
ScanSource Communications - UK
ScanSource Communications - Germany

SCANSOURCE ACHIEVES RECORD QUARTERLY SALES

Contact: Richard P. Cleys, VP and CFO
ScanSource, Inc.
(864) 286-4358


GREENVILLE, SC - August 19, 2010 - ScanSource, Inc. (NASDAQ:SCSC), the leading international distributor of AIDC (automatic identification and data capture), point of sale, communications, and electronic security products for the reseller market, today announced complete financial results for its fourth quarter and fiscal year ended June 30, 2010.

Quarter Ended June 30, 2010   Fiscal Year Ended June 30, 2010
Net sales    $582 million   Net sales $2,115 million
Net income    $14.0 million   Net income    $48.8 million
Diluted EPS    $0.52 per share   Diluted EPS    $1.82 per share

                                                               
“The ScanSource teams delivered excellent results for the June quarter across all product lines,” said Mike Baur, CEO, ScanSource, Inc. “This quarter we sold to an increasing number of customers and were pleased to see a resurgence of big deals.”

For the quarter ended June 30, 2010, net sales increased 32% to $582 million compared to $441 million for the quarter ended June 30, 2009. Operating income also increased by 5% to $21 million from $20 million in the comparable prior year quarter. Net income increased 12.4% to $14 million for the quarter ended June 30, 2010 versus $12.5 million for the quarter ended June 30, 2009. The effective tax rate for the quarter was 33.1%, compared to 37.4% for the fourth quarter of the prior year. Diluted earnings per share increased 10.6% to $0.52 in the current quarter compared to $.47 in the fourth quarter of the prior year.

For the year ended June 30, 2010, net sales increased $267 million, or 14.4% to $2.1 billion, compared to the prior year ended June 30, 2009. Fiscal year operating income also increased 2.2% to $75.8 million from $74.1 million for the prior fiscal year. Net income increased 2.4% to $48.8 million compared to $47.7 million for the prior fiscal year. The effective tax rate for the year was 35.6% compared to 37.0% for the prior fiscal year. Diluted earnings per share increased 1.7% to $1.82 compared to $1.79 in the prior fiscal year.

Forecast for Next Quarter
The Company announced its revenue forecast for the first quarter of fiscal 2011. ScanSource expects net revenues for the September 2010 quarter could range from $555 million to $575 million.

Safe Harbor Statement
This press release contains comments that are “forward looking” statements that involve risks and uncertainties; these statements are subject to the safe harbor created by the Private Securities Litigation Reform Act of 1995. Any number of important factors could cause actual results to differ materially from anticipated results, including, but not limited to macroeconomic circumstances that could impact our business, such as currency fluctuations, continued adverse capital and credit market conditions and a prolonged economic downturn. For more information concerning factors that could cause actual results to differ from anticipated results, see the Company’s annual report on Form 10-K for the year ended June 30, 2009 filed with, and the Company’s annual report on Form 10-K for the year ended June 30, 2010 to be filed with, the Securities and Exchange Commission.

About ScanSource, Inc.
ScanSource, Inc. (NASDAQ:SCSC) is a leading international distributor of specialty technology products, consisting of seven sales units in North America, Latin America and Europe.
ScanSource POS and Barcoding in North America, Latin America and Europe delivers AIDC and POS solutions; Catalyst Telecom in the U.S. and ScanSource Communications in North America and Europe, provide voice, video and converged communications equipment; and ScanSource Security in North America offers physical security solutions. Founded in 1992, the company ranks #881 on the Fortune 1000. For more information, call the toll-free sales telephone number at 800.944.2432 or visit www.scansourceinc.com.