SCSC ScanSource Inc

ScanSource, Inc. (NASDAQ:SCSC), a 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 third quarter ended March 31, 2009.

Quarter End 3/31/09 capsule:

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Net sales $390 million

Net income $9.2 million

Diluted EPS $0.35 per share

�Although we are disappointed in the weak sales results across all of our businesses,� said Mike Baur, CEO, ScanSource, Inc., �we are satisfied with our overall operating results.�

For the quarter ended March 31, 2009, net sales decreased 24.2% to $390 million compared to $514 million for the quarter ended March 31, 2008. Quarterly operating income decreased 20.4% to $15.1 million from $19.0 million for the comparable prior year quarter. The effective tax rate for the quarter was 37.6%, compared to 38.8% for the prior year quarter. Net income decreased 16.3% to $9.2 million for the quarter ended March 31, 2009 versus $11.0 million for the quarter ended March 31, 2008.

Forecast for Next Quarter

The Company announced its revenue forecast for the fourth quarter of fiscal 2009. ScanSource expects net revenues for the June 2009 quarter could range from $ 390 million to $ 430 million.

Safe Harbor Statement

This news 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, 2008 filed with the Securities and Exchange Commission.

About ScanSource

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 #854 on the Fortune 1000. For more information, call the toll-free sales telephone number at 800.944.2432 or visit www.scansourceinc.com.

SCANSOURCE, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE SHEETS(In thousands) � March 31, 2009 June 30, (unaudited) 2008 * Assets

Current Assets

Cash and cash equivalents $ 114,391 $ 15,224 Trade & notes receivable, net 252,919 360,154 Other receivables 5,837 8,052 Inventories 218,407 280,077 Prepaid expenses and other assets 5,539 5,556 Deferred income taxes � 11,593 � � 11,428 Total current assets 608,686 680,491 � Property and equipment, net 22,516 22,420 Goodwill 32,705 36,121 Other assets, including identifiable intangible assets � 30,645 � � 33,174 Total assets $ 694,552 � $ 772,206 � Liabilities and Shareholders' Equity �

Current Liabilities

Current portion of long-term debt $ - $ - Short-term borrowings - 7,649 Trade accounts payable 197,907 265,284 Accrued expenses and other liabilities � 29,530 � � 38,922 Total current liabilities 227,437 311,855 � Long-term debt 30,429 29,576 Borrowings under revolving credit facility - 27,047 Other long-term liabilities � 9,332 � � 7,975 Total liabilities � 267,198 � � 376,453 � �

Shareholders' Equity

Common stock 102,888 96,097 Retained earnings 325,318 290,134 Accumulated other comprehensive income (loss) � (852 ) � 9,522 Total shareholders' equity � 427,354 � � 395,753 Total liabilities and shareholders' equity $ 694,552 � $ 772,206 � * Derived from audited financial statements at June 30, 2008. SCANSOURCE, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED INCOME STATEMENTS (UNAUDITED)(In thousands, except per share data) � � � � � Quarter ended Nine months ended March 31, March 31, 2009 2008 2009 2008 � Net sales $ 389,815 $ 514,420 $ 1,406,733 $ 1,621,455 Cost of goods sold � 342,280 � � 462,701 � � 1,251,368 � � 1,452,435 � Gross profit � 47,535 � � 51,719 � � 155,365 � � 169,020 � �

Selling, general and administrative expenses

� 32,418 �

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� 32,723 � � 101,225 � � 99,238 � Operating income 15,117 18,996 54,140 69,782 � Other expense (income): Interest expense 609 1,097 1,810 4,496 Interest income (344 ) (401 ) (1,119 ) (1,108 ) Other expense (income) � 54 � � 286 � � (2,228 ) � (118 ) Other expense (income), net � 319 � � 982 � � (1,537 ) � 3,270 � Income before income taxes 14,798 18,014 55,677 66,512 � Provision for income taxes � 5,569 � � 6,986 � � 20,492 � � 25,347 � Net income $ 9,229 � $ 11,028 � $ 35,185 � $ 41,165 � � Per share data: Net income per common share, basic $ 0.35 � $ 0.42 � $ 1.33 � $ 1.59 � � Weighted-average shares outstanding, basic � 26,463 � � 26,038 � � 26,412 � � 25,934 � � Net income per common share, diluted $ 0.35 � $ 0.42 � $ 1.32 � $ 1.56 � � Weighted-average shares outstanding, diluted � 26,565 � � 26,423 � � 26,572 � � 26,325 �