Tech Data Reports Record Q3

By Sara Driscoll  |  Print this article Print


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The distribution giant sees sales and operating profit both up for its fiscal third quarter 2008.

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."
Sara Driscoll began her journalism career at 16 years old on her local newspaper, The Watford Observer. Working part time, she covered a range of beats. Leaving to complete her Journalism Degree at Bournemouth University, UK, Sara then went on to graduate and work for Emap. She began as a reporter on APR, Emap's construction title, being promoted to senior reporter with a year.Sara then joined VNU Business Publications as Deputy News Editor on CRN, the weekly trade title for channel players. She covered industry/business news from vendors, distributors and resellers, product announcements, partner announcements as well as market and trend analysis, research and in depth articles to predict up and coming trends in the sector. She was promoted within a year to News Editor, a year later to Deputy Editor and the following year became Editor. Sara remained editor of CRN for three years, launching the magazine on new platforms including CRN TV and eBooks, as well as several magazine and web site redesigns. She was called on for expert industry comment from various publications including appearing on live BBC news programs. Sara joined Ziff Davis Enterprise as Editor of eWeek Channel Insider. She runs the title in all formats – online up to the minute news, newsletters, emails alerts and events. She also manages the brand of Channel Insider in all formats - events, shows, awards, panel debates and roundtables.Sara can be reached at:sara.driscoll@ziffdavisenterprise.com

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