Businessweek

ScanSource, Inc., together with its subsidiaries, operates as a wholesale distributor of specialty technology products. The company has two geographic distribution segments: the North American distribution segment serving the United States and Canada from its Southaven, Mississippi distribution center and an International segment serving Latin America and Europe from distribution centers located in Florida, Mexico, Brazil and Belgium. The North American distribution segment sells products through four sales units: automated identification and data capture (AIDC) and point-of-sale (POS) equipment sold by the ScanSource POS and Barcoding sales unit; voice, data, video and converged communications equipment sold by the Catalyst Telecom and ScanSource Communications sales units; and physical security and wireless infrastructure products sold by the ScanSource Security sales unit. The International Distribution segment markets AIDC, POS, communications and security products through its ScanSource Latin America sales unit; AIDC and POS products through its ScanSource Europe sales unit; and communication products through its ScanSource Communications sales unit in Europe. North American Distribution ScanSource POS and Barcoding Sales Unit: The ScanSource POS and Barcoding sales unit markets AIDC and POS products which interface with computer systems used to automate the collection, processing and communication of information for commercial and industrial applications, including retail sales, distribution, shipping, inventory control, materials handling and warehouse management. The bar code family of products is referred to as automatic identification and data capture because it includes all types of portable data collection terminals, wireless products, bar code label printers and scanners. POS products are those PC-based products that have replaced electronic cash registers in retail and hospitality environments and the peripheral products that attach to them. These peripheral devices include such items as cash drawers, pole displays, signature capture units, display monitors and magnetic strip readers. In addition to these peripheral devices, ScanSource POS and Barcoding also sells products that attach to the POS network in the store, including kiosks, network access points, routers and digital signage displays. Catalyst Telecom Sales Unit: The Catalyst Telecom sales unit markets voice, data and converged communication systems and is a distributor of Avaya communications solutions, including Avaya Enterprise Solutions, Small and Medium Enterprise (SME) and Internet protocol (IP) products. ScanSource Communications Sales Unit: The ScanSource Communications sales unit is a comprehensive value-added distributor of total communications solutions, including video and audio conferencing products; telephony solutions including Voice over IP (VoIP); and computer telephony building blocks. ScanSource Security Sales Unit: The ScanSource Security sales unit focuses on hardware distribution of electronic security equipment. The product offering includes identification, access control, video surveillance, intrusion-related and wireless infrastructure products. International Distribution The International Distribution segment markets AIDC, POS and communications products to technology resellers and integrators in the Latin American and European markets. In addition, the company distributes specialty security technologies in Latin America. In 2011, the company purchased all of the shares of CDC Brasil S.A. (CDC), formerly known as CDC Brasil Distribuidora LTDA, a corporation organized under the laws of the Federative Republic of Brazil, in order to expand its reach in the Latin American market. CDC is included with its ScanSource Latin America operating unit. Products and Markets The company markets approximately 100,000 products from approximately 250 hardware and software vendors to 30,000 reseller customers primarily from its central warehouses in Mississippi, Florida, Mexico, Brazil and Belgium. AIDC technology incorporates the capabilities for electronic identification and data processing without th