Tech Data Quarter Sales Climb 13 Percent

By Jessica Davis  |  Posted 2011-05-23 Email Print this article Print
 
 
 
 
 
 
 

IT distributor Tech Data Corp. saw net sales grow by 13 percent on strength in Europe.

IT distributor Tech Data Corp. (NASDAQ:TECD) reported net income of $48.7 million on sales of $6.3 billion, for its fiscal first quarter ending April 30. The net sales marked a 13 percent increase from the same period a year ago.

"We are pleased to report another solid performance with record first quarter sales, net income and earnings per share," said Bob Dutkowsky, CEO, in a statement.

The earnings announcement comes just days after Tech Data’s Tech Select event where the company announced a new cloud initiative for partners, TDCloud.

The Clearwater, Fla.-based company noted that net sales in the Americas grew by 6 percent over the same period a year ago and net sales in Europe grew by 18 percent.

Tech Data also saw a gross margin improvement – 5.27 percent versus 5.21 percent in the prior year first quarter. "Solid sales, product diversification and effective execution of the company’s pricing and freight management practices were contributing factors in the gross margin performance," the company said in a statement.

Tech Data’s Dutkowsky said the company expects year-over-year organic growth in both regions on a local currency basis for the second quarter.

"For the fiscal year, we remain confident in our ability to achieve our stated goals of double-digit operating income and earnings growth, as well as return on invested capital within a range of 14 to 16 percent," Dutkowsky said.

 

 
 
 
 
 
Jessica Davis covers the channel for eWeek and Channel Insider. Her technology journalism career began well before anyone heard of the World Wide Web and has included stints at Infoworld, Electronic News/EDN, and the Philadelphia Business Journal. Her work has also appeared on CNN and Forbes.com. She has covered hardware, software and networking, as well as the business side of technology. She has won several journalism awards, including a national ASBPE award for best staff-written column, and was named Marketing Computers hardest working tech journalist on their inaugural list of top tech journalists. Jessica can be reached at jessica.davis@ziffdavisenterprise.com
 
 
 
 
 
























 
 
 
 
 
 

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