n North America, net sales were $865.5 million for the second quarter of 2010, up 21% from the second quarter of 2009. Net sales of hardware and software increased 27% and 21%, respectively, year over year, while net sales in the services category declined 15% year to year. Gross profit was up 20% year over year at $119.6 million with gross margin declining 20 basis points to 13.8% from 14.0% in the prior year quarter. Selling and administrative expenses in North America were $86.4 million during the second quarter of 2010, compared to $86.0 million in the second quarter of 2009. Selling and administrative expenses in the second quarter of 2010 include approximately $225,000 of professional fees and costs associated with the restatement remediation and ongoing litigation. Comparatively, selling and administrative expenses in the second quarter of 2009 included $2.6 million of professional fees and costs associated with the trade credits investigation and restatement quantification. Further, selling and administrative expenses in the three months ended June 30, 2010 were reduced by $2.9 million upon the collection of a single account receivable which we had specifically reserved as doubtful during the fourth quarter of 2009. The North America segment recorded $943,000 of severance and restructuring charges during the second quarter of 2010. There were no such charges in North America in the second quarter of last year. As a result, earnings from operations in North America were $32.3 million, or 3.7% of net sales, in the second quarter of 2010, compared to $13.8 million in the second quarter of 2009.
The Company’s EMEA operating segment reported net sales of $359.2 million for the second quarter of 2010, up 28% in U.S. dollars compared to the second quarter of 2009. Excluding the effects of foreign currency movements, net sales were up 36%. Net sales of hardware grew 13% year over year, software sales increased 34% and services sales grew by 31% compared to the second quarter of last year, all in U.S. dollars. Excluding the effects of foreign currency movements, hardware sales increased 18%, software sales increased 44% and services net sales increased 39% year over year. Gross profit was up 11% in U.S. dollars, 19% excluding the effects of foreign currency movements, while gross margin decreased to 12.9% for the second quarter of 2010 from 14.9% in the prior year quarter. Selling and administrative expenses in EMEA in the second quarter of 2010 were up 8%, or $2.7 million, compared to the second quarter of 2009 in U.S. dollars and, excluding the effects of foreign currency movements, were up 14% year over year. EMEA also recorded $375,000 in severance and restructuring expenses, net of adjustments, in the quarter ended June 30, 2010, compared to $1.9 million in severance and restructuring charges recorded during the second quarter of 2009. As a result, earnings from operations in EMEA were $9.6 million, or 2.7% of net sales, in the second quarter of 2010 compared to $6.1 million in the second quarter of 2009.
The Company’s APAC operating segment reported net sales of $52.9 million for the second quarter of 2010, up 25% from the second quarter of 2009 in U.S. dollars, 14% excluding the effects of foreign currency movements. Gross profit was $7.7 million, an increase of 22% year over year in U.S. dollars, 10% excluding the effects of foreign currency movements, while gross margin decreased to 14.6% for the second quarter of 2010 from 14.9% in the prior year quarter. Selling and administrative expenses in APAC increased 22% year over year in U.S. dollars, 8% excluding the effects of foreign currency movements. The APAC segment recorded no severance and restructuring charges during the quarter ended June 30, 2010, compared to $230,000 in severance and restructuring charges recorded during the second quarter of 2009. As a result, earnings from operations in APAC were $2.7 million, or 5.2% of net sales, in the second quarter of 2010, compared to $2.0 million in the second quarter of 2009.
Source:-http://www.marketwatch.com/story/insight-enterprises-inc-reports-second-quarter-2010-results-2010-08-04?reflink=MW_news_stmp
