Tech Data has reported net sales for its fiscal 2008 third quarter ended Oct. 31 of $5.9 billion, an increase of 9.1 percent from $5.4 billion in the prior-year period and a Q3 record for the company.
Third quarter net income totaled $40.9 million, compared to net income of $9.6 million for the prior-year period. Net sales in the Americas (including the United States, Canada, Latin America and export sales to the Caribbean) were $2.9 billion, or 49 percent of worldwide net sales, representing an increase of 10.3 percent over the third quarter of fiscal 2007 and a decrease of .9 percent from the second quarter of fiscal 2008.
Net sales in Europe totaled $3 billion, or 51 percent of worldwide net sales, representing an increase of 7.9 percent (1.7 percent decrease on a local currency basis) over the third quarter of fiscal 2007 and an increase of 12.5 percent (9.2 percent increase on a local currency basis) over the second quarter of fiscal 2008.
Results for the comparable third quarter of fiscal 2007 included $6.1 million of restructuring charges and $2.8 million of consulting costs related to the company's European restructuring program which was completed in October 2006. Excluding these charges and costs, non-GAAP net income for the prior-year quarter ended October 31, 2006 totaled $18 million.
Robert Dutkowsky, Chief Executive Officer of Tech Data, said in a statement: "Steady market conditions during the quarter, coupled with Tech Data's sales execution, SMB focus, and product and inventory management efforts, drove record third-quarter net sales and a significant improvement in operating income year-over-year. Our European operations continue to strengthen and gain traction in the marketplace. While there is still work to do as we improve upon our execution and profitability, we are pleased to see our European operations performing at or ahead of our expectations and delivering stronger working capital metrics."
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