ScanSource Restructures Communications Business in Europe for Profitable Growth
ScanSource, Inc. (NASDAQ: SCSC), the leading international value-added distributor of specialty technology products, today announced the restructuring of its Communications business unit in Europe to support a pan-European strategy for profitable growth. The restructuring includes new leadership and also provides cost savings from the elimination of positions and the centralization of support services.
In support of this new structure, ScanSource has named Rudy De Meirsman as Managing Director for ScanSource Europe Communications, a newly-created position. Mr. De Meirsman is responsible for implementing a pan-European strategy for the Communications business unit and leading a focused, dynamic team. He reports to Buck Baker, Interim President of ScanSource Europe.
Mr. De Meirsman joined ScanSource in 2010 and previously served as the Senior Director of Merchandising for ScanSource’s Communications business unit in Europe. He has over 20 years of experience in technology distribution, including sales and marketing leadership positions with Plextor Europe and distributor Tech Data.
“Rudy has proven himself as a leader with the experience we need to take the next step in our Communications business in Europe. These moves will provide focused leadership and operational efficiencies, as we continue to implement our pan-European strategy to serve our key partners, including Avaya, Extreme, LifeSize, and ShoreTel,” said Baker.
The restructuring includes the elimination of positions to set the cost structure in line with current operations and move to more global shared support services. The organizational structure provides focused business unit leadership, as well as dedicated merchandising, sales and technical support teams, at a scale for profitable growth. In addition, ScanSource will move certain European support functions to centralized global teams in the United States to gain efficiencies.
The annualized cost savings in connection with the restructuring, principally associated with the elimination of positions, are estimated to be approximately $3.1 million. The Company expects to incur approximately $1.2 million in associated one-time costs, which include related severance expenses, during the quarter ending March 31, 2013.
“ScanSource continues to adapt our business model to better address the changing demands of the global marketplace. The new scale of our operations fits with our present vendor and sales opportunities, while positioning us for future expansion as we add to our vendor portfolio and pan-European geographic reach,” said Mike Baur, Chief Executive Officer of ScanSource, Inc. “This strategy will allow us to be more efficient, while positioning our Communications business unit in Europe for profitable growth.”
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 or forecasted results, including, but not limited to, factors affecting costs and efficiencies expected to be associated with the Company’s pan-European strategy and macroeconomic circumstances that could impact the strategy and business independent of the new structure created by the company. For more information concerning factors that could cause actual results to differ from anticipated results, see the Company's periodic reports on Form 10-K and Form 10-Q. Except as may be required by law, the company expressly disclaims any obligation to update these forward-looking statements to reflect events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events.
About ScanSource, Inc.
ScanSource, Inc. (NASDAQ:SCSC) is the leading international distributor of specialty technology products, operating from dedicated business units in North America, Latin America and Europe. ScanSource POS & Barcode delivers AIDC (automatic identification and data capture) and POS (point-of-sale) solutions; Catalyst Telecom and ScanSource Communications provide voice, video, data and converged communications equipment; ScanSource Security offers physical security solutions; and ScanSource Services Group delivers value-added support programs and services. Founded in 1992, the company ranks #760 on the Fortune 1000. For more information, call the toll-free sales telephone number at 800.944.2432 or visit www.scansourceinc.com.
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