Make us your home page

Tech Data posts higher sales, record profits

Despite worse-than-expected market conditions in both Europe and the United States, Tech Data Corp. posted higher sales and record profits in its fiscal third quarter.

The Clearwater-based computer parts distributor, Tampa Bay's biggest public company by revenue, reported Monday that sales for the quarter ended Oct. 31 rose 7 percent to $6.59 billion, with better results in both the Americas and Europe. The strengthening of certain foreign currencies against the dollar gave a boost to results by approximately 3 percentage points.

Its net income increased to $53.5 million, or $1.26 per share, compared to $50.5 million, or $1.07 per share, in the year-ago period.

Tech Data CEO Robert Dutkowsky gave kudos to his teams in the United States and overseas for navigating "a moderating demand environment."

The results fells shy of analysts' expectations of $1.27 per share net income on revenues of $6.74 billion, according to a Thomson Reuters forecast. But Dutkowsky was undaunted, saying it's hard to be disappointed when his company has its best quarterly profits in its 37-year history and the 12th quarter in a row of double-digit earnings growth.

"Clearly the IT spending has slowed down even faster than what Wall Street analysts thought," he said in an interview. "We can only grow as fast as IT spending grows."

To offset sluggish conditions in Europe overall and restrained consumer demand worldwide, Tech Data has been selective in pursuing pockets of sales strength.

"People may not be updating their PCs or buying new video games or replacing their big-screen TVs," Dutkowsky said. But "people continue to buy smartphones and cellphones at record rates. (They) continue to buy tablets and notebooks. … It's not all doom and gloom is the point."

It's a similar story in corporate spending, he said. Sales of peripheries like printers and displays are down, but companies are investing more in tablets, cellphones and software that expands the life of their existing computer system.

Looking ahead, Tech Data projected flat to low single-digit sales growth in the fourth quarter, not including the affect of currency fluctuations.

Amid a broader sell-off in the market Monday, shares in Tech Data closed at $47.48, down 42 cents or about 1 percent.

Tech Data posts higher sales, record profits 11/21/11 [Last modified: Monday, November 21, 2011 10:21pm]
Photo reprints | Article reprints

© 2017 Tampa Bay Times


Join the discussion: Click to view comments, add yours

  1. In advertising, marketing diversity needs a boost in Tampa Bay, nationally


    TAMPA — Trimeka Benjamin was focused on a career in broadcast journalism when she entered Bethune-Cookman University.

    From left, Swim Digital marketing owner Trimeka Benjamin discusses the broad lack of diversity in advertising and marketing with 22 Squared copywriter Luke Sokolewicz, University of Tampa advertising/PR professor Jennifer Whelihan, Rumbo creative director George Zwierko and Nancy Vaughn of the White Book Agency. The group recently met at The Bunker in Ybor City.
  2. Tampa Club president seeks assessment fee from members


    TAMPA — The president of the Tampa Club said he asked members last month to pay an additional assessment fee to provide "additional revenue." However, Ron Licata said Friday that the downtown business group is not in a dire financial situation.

    Ron Licata, president of the Tampa Club in downtown Tampa. [Tampa Club]
  3. Under Republican health care bill, Florida must make up $7.5 billion


    If a Senate bill called the Better Care Reconciliation Act of 2017 becomes law, Florida's government would need to make up about $7.5 billion to maintain its current health care system. The bill, which is one of the Republican Party's long-promised answers to the Affordable Care Act imposes a cap on funding per enrollee …

    Florida would need to cover $7.5 billion to keep its health care program under the Republican-proposed Better Care Reconciliation Act of 2017.  [Times file photo]
  4. Amid U.S. real estate buying binge by foreign investors, Florida remains first choice

    Real Estate

    Foreign investment in U.S. residential real estate recently skyrocketed to a new high with nearly half of all foreign sales happening in Florida, California and Texas.

    A National Association of Realtors annual survey found record volume and activity by foreign buyers of U.S. real estate. Florida had the highest foreign investment activity, followed by California and Texas. [National Association of Realtors]
  5. Trigaux: Tampa Bay health care leaders wary of getting too far ahead in disruptive times


    Are attempts to repeal Obamacare dead for the foreseeable future? Might the Affordable Care Act (ACA), now in dire limbo, be revived? Will Medicaid coverage for the most in need be gutted? Can Republicans now in charge of the White House, Senate and House ever agree to deliver a substitute health care plan that people …

    Natalia Ricabal of Lutz, 12 years old, joined other pediatric cancer patients in Washington in July to urge Congress to protect Medicaid coverage that helped patients like Ricabal fight cancer. She was diagnosed with Ewing's sarcoma in 2013 and has undergone extensive treatments at BayCare's St. Joseph's Children's Hospital in Tampa. [Courtesy of BayCare]