Insight Enterprises
Annual Report 2002

Plain-text annual report

I N S I G H T E N T E R P R I S E S , I N C . 2002 ANNUAL REPORT I n s i g h t E n t e r p r i s e s , I n c . A N N U A L R E P O R T 2 0 0 2 Dear Stockholders, Customers, Vendors and Employees, During 2002 and continuing into 2003, economic conditions continue to affect the IT industry, and many businesses worldwide have either tightened or frozen their IT budgets. This motivated us to examine our business model and refine our vision of the next wave of industry change. Although the timing is uncertain, a rebound in IT spending is inevitable. But, customer needs have been evolving and the industry is being challenged to identify new approaches to satisfy those needs. We are preparing to satisfy and potentially influence the evolving customer needs in our industry. Timothy A. Crown Chief Executive Officer We believe the marketplace is shifting from a primary concern with product pricing toward an appreciation that, when certain services are provided with the products, the customer can achieve a complete technology solution. The ability to offer a wide range of product and service solutions in a timely and efficient manner will be important to our ability to expand our market penetration as businesses increase their rates of investment in new and updated technology. In 2002, we undertook the challenge of growing our business through a major acquisition. We added both scale, and advanced service capabilities in North America. As a result of the acquisition, we increased our presence with larger corporations, government entities and educational institutions. We also continue to focus on our historically targeted customer group of small-to-medium-sized businesses. This strategic move enabled us to redefine our business model and position the company for sustainable long-term growth. We have made great strides integrating this acquisition into our Insight North American operations during 2002 and will concentrate in 2003 on completing system conversions and maximizing efficiencies. These are not easy tasks, but I believe we will complete them successfully by the end of 2003 and achieve an even more efficient operating model as we enter 2004. Insight North America’s new business model extends beyond straight product resale to provide total technology solutions. We still offer competitively priced products, but now, with our advanced integration and custom configuration labs, we are able to offer additional layers of advanced service and financing options, customized to individual customer needs. We continue to invest in our sales force and our relationships with customers and vendors. We are also capitalizing on our internal “Centers of Excellence” which maintain dedicated personnel and conduct continual training focused on specialized topics in hardware, software and service categories. Although we remain challenged by the current environment of political and economic uncertainty, we are extending the benefits of our acquired service capabilities throughout all of our customer groups. Our offerings have risen to a level above directly comparable industry competitors. We believe this provides a distinct advantage in the marketplace. We are deploying new marketing strategies and branding initiatives to increase customer awareness and highlight the breadth of capabilities that differentiate us from our competitors. We continue to pursue our commitment to global expansion. Despite some U.K. integration issues in the second quarter, we ended the year with strong new management in Insight U.K. We have refined our European focus and are targeting the small-to-medium-sized business customer, since we believe this to be the European market segment with the fewest barriers to entry and the greatest opportunity for market penetration. Our Direct Alliance subsidiary continues to sustain enduring relationships with its manufacturing clients. Direct Alliance managed to perform well despite the sluggish economy, and is now offering multi-lingual, multi-currency capabilities that assist its clients as they expand into European and Asian markets. As you review our annual report, you will be assessing our past performance, weighing it against the present, and making calculated predictions about our future. We perform a similar analysis in the development of our business strategies. During the past 14 years, the success of Insight Enterprises has been based on our anticipation of industry changes and marketplace needs. Strategically timed changes to our business model have enabled the Company to grow from a small reseller of hard drives to one of the leading providers of IT products and services. While we learn from our past successes, we understand that we must continue to look ahead and be proactive in order to stay competitive and optimize returns for our stockholders. We anticipate that Insight Enterprises will be ahead of the curve as it cultivates a growing following of business customers seeking the efficiency of a single source for total IT solutions. We hope to see positive changes in the economy as 2003 unfolds, and we thank our employees, customers, vendors and stockholders for believing in the vision of Insight Enterprises. Sincerely, Timothy A. Crown CEO, Insight Enterprises, Inc. (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:6)(cid:4)(cid:11)(cid:12)(cid:10)(cid:11)(cid:12)(cid:4)(cid:13)(cid:11)(cid:8)(cid:14)(cid:14)(cid:15)(cid:6)(cid:14)(cid:10)(cid:16)(cid:12)(cid:6)(cid:17)(cid:14)(cid:8)(cid:11)(cid:18)(cid:19) (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:6)(cid:4)(cid:11)(cid:12)(cid:10)(cid:11)(cid:12)(cid:4)(cid:13)(cid:11)(cid:8)(cid:14)(cid:14)(cid:15)(cid:6)(cid:14)(cid:10)(cid:16)(cid:12)(cid:6)(cid:17)(cid:14)(cid:8)(cid:11)(cid:18)(cid:19) I n s i g h t E n t e r p r i s e s , I n c . Insight Enterprises, Inc. is a leading provider of information technology (“IT”) products and services to businesses in the United States, Canada and the United Kingdom. The company’s offerings include brand name computing products, advanced IT services and outsourcing of business processes. Major brands recognized by customers are “Insight” and related Insight-branded subsidiaries, and “Direct Alliance Corporation.” The company has approximately 4,500 employees worldwide and generated sales of $2.9 billion for its most recent fiscal year, which ended December 31, 2002. B o a r d o f D i r e c t o r s Seated: Timothy A. Crown, Chief Executive Officer and Director; Eric J. Crown, Vice President and Chairman of the Board. Standing: Stanley Laybourne, Executive Vice President, Chief Financial Officer, Treasurer and Director; Robertson C. Jones, Director and Chairman of the Nominating Committee; Larry A. Gunning, Director and Chairman of the Compensation Committee; Michael M. Fisher, Director and Chairman of the Audit Committee. INVESTOR INFORMATION Company background information and all publicly disclosed communications including press releases, SEC filings and financial reports are updated in real time and available to view and/or download online on the investor relations ANNUAL MEETING OF STOCKHOLDERS Wednesday, May 14, 2003, 3:00 pm portion of the www.insight.com Web site. Additional hard Insight Enterprises, Inc. 1305 West Auto Drive Tempe, Arizona 85284 CORPORATE OFFICES Insight Enterprises, Inc. 1305 West Auto Drive Tempe, AZ 85284 (480) 902-1001 copies of the Company's 2002 Annual Report on Form 10-K are available to stockholders upon request without charge. To submit your request for additional information, • Visit us on the Web at www.insight.com TRANSFER AGENT Wells Fargo Bank Minnesota, N.A. Shareowner Services P.O. Box 64854 • Call the Investor Relations Hotline at (800) 546-0586 or (480) 902-1001 • Mail your request to: St. Paul, Minnesota 55164 Insight Enterprises, Inc. (800) 468-9716 INDEPENDENT ACCOUNTANTS KPMG LLP One Arizona Center 400 East Van Buren Street Phoenix, Arizona 85004 Investor Relations 1305 W. Auto Drive Tempe, Arizona 85284 Insight Direct Worldwide, Inc. www.insight.com 800.INSIGHT PlusNet Technologies Limited www.plus.net.uk 011.44.114.220.0097 Direct Alliance Corporation www.direct-alliance.com 800.998.8071 

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