Raise The GameCEO's LetterFinancialsWhat We DoClient SuccessesGovernance
2012 was a year of rapid transformation and financial success for Forsythe. It marks our 42nd consecutive year of profitability. Major changes occurred in the way our clients consume information technology. Key to this transformation was the emergence of the hybrid data center model. During 2012, Forsythe focused on helping its clients engineer, build, secure and operate hybrid data centers to support legacy and new workloads. These hybrid data centers include on-premise private facilities, off-premise private facilities, and off-premise public facilities. Using virtualization, automation and orchestration technologies, we helped our clients improve performance and reduce cost.

Forsythe had another successful year from a financial standpoint, with 2012 operating earnings increasing 16% as compared to 2011. The increase in operating earnings was driven by solid growth in GAAP Revenues, along with strong expense control across our operation.

Growth in gross margins came primarily from new product sales and leasing. In addition, we made significant progress in expanding our professional and managed services businesses.

This strong overall performance in 2012 is a credit to the hard work and dedication of our employee-owners and helped drive the ESOP share price 23% higher.

As part of Forsythe's growth plan, we acquired two companies this past year to enable us to provide broader solutions to our clients' information security needs, and to enhance our capabilities in managed hosting.

In August 2012, we acquired SOS Security, a leading provider of information security products and solutions based in Houston, Texas. This acquisition augments Forsythe's capabilities in managing risk and expands our presence in the Southwest. SOS is Forsythe's fourth security acquisition in the last 11 years.

We also acquired the Mentora Group, Inc., in September 2012. This provider of managed hosting, managed services and application performance testing helps Forsythe expand its managed and professional services business. It was a transformational step for the company to venture into the managed hosting business.

We are thrilled to have SOS Security and Mentora within the Forsythe fold. Mentora was our ninth acquisition since 2001 and both companies enable us to better meet our client's needs as they change and grow.

View our evolution timeline

We continue to deepen our relationships with our clients. Our 2012 retention rates are 100 percent for our top 50 clients, and 93 percent for our top 200.

We also enhanced our solutions portfolio beyond our two acquisitions and our hybrid data center offerings. We launched services across each line of business – in storage, compute, security and networking – to help our clients modernize their technology infrastructure to optimize performance and cost.

We continue to develop the capabilities of our people, earning 2,079 technical certifications in 31 technology areas, and achieving almost 1,000 hours of leadership development. Combining innovative tools with top talent allows us to deliver best-in-class infrastructure solutions to our clients. We also continue investing in new systems and process improvements to help boost productivity and rapidly scale our business.

Our employees always focus on achieving positive outcomes for our clients. The more than 900 employee-owners are committed to the following core values:

We are proud to be honored with the following 2012 recognitions and industry awards:
  • CRN Top Solution Provider (formerly VARBusiness 500) for the 18th straight year
  • Crain's 500 (list of top public and private companies in Chicago)
  • Computer Reseller News (CRN) Tech Elite 250
  • Monitor Top 100 Leasing Companies for the 20th year
  • Monitor Top Private Independents (past 5 years)
We see change continuing to accelerate. More data will be created during 2013 alone than all the data created from the beginning of time. By 2016, global mobile video traffic will more than quadruple, and the number of mobile Internet devices will exceed three times the global population. Most importantly, IT consumption models continue to change. More and more, IT is being consumed as a service. So with more change on the horizon, we stand poised and ready to help our clients explore new opportunities, modernize their infrastructure and prepare for what's ahead. We welcome the new opportunities and challenges that will propel our customers, partners and employees forward together.