May 29, 2003 (12:05 PM EDT)
Tech Data Reports Sharp Fall In Profits
Read the Original Article at InformationWeek
IT reseller and services company Tech Data Corp. said yesterday that sales for its first quarter ended April 30 were $3.91 billion, roughly flat when compared with last year when the company posted revenue of $3.92 billion during the same period. Net income was $21.5 million, or 38 cents per share, a sharp decline from a year ago when Tech Data reported earnings of $35.1 million, or 60 cents per share.
The results include some revenue and earnings booked by the Azlan Group, a U.K.-based distributor of networking products that Tech Data acquired in March.
In a statement, Tech Data chairman and CEO Steven Raymund blamed the drop in earnings on "difficult economic times." Raymund added that moves such as the Azlan acquisition will help diversify the company's revenue stream and give it a bigger footprint in more specialized IT markets.
Tech Data is unlikely to meet earnings estimates for its second quarter. The company forecasts profits during the period of between $19.5 million and $22 million, or 34 cents and 38 cents per share. Analysts had expected Tech Data to produce second-quarter earnings of 41 cents.