Tech Data Quarter Sales Climb 13 PercentBy Jessica Davis | 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
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.