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
“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,”