CLEARWATER, Fla. – Tech Data Corp. said that net sales for the first quarter ended April 30 were US$5.4 billion, an increase of 9.3 percent from $4.9 billion in the first quarter of fiscal 2007.
The company recorded income from continuing operations of $9.9 million (all figures in U.S. dollars), or $.18 per diluted share based upon Generally Accepted Accounting Principles (“GAAP”). This compares to $8.9 million for the prior-year period.
Results for the first quarter of fiscal 2008 include an $8.8 million charge related to the company’s closure of its operations in the United Arab Emirates (UAE).
“Our first quarter progress validates that our strategic initiatives are on the right track,” said CEO Robert Dutkowsky. “We continue to hone our position for long-term success, and while we know we still have work to do, it is clear that our renewed focus on the marketplace and our efforts to optimize our product and customer portfolio mix are beginning to take hold.”
Net sales in the Americas (including the United States, Canada, Latin America and export sales to the Caribbean) were $2.5 billion, or 46 per cent of worldwide net sales, representing an increase of 6.1 per cent over the first quarter of fiscal 2007 and a decrease of 1.0 per cent over the fourth quarter of fiscal 2007.
Net sales in Europe (including Europe, the Middle East and export sales to Africa) totaled $2.9 billion, or 54 per cent of worldwide net sales, representing an increase of 12.2 per cent over the first quarter of fiscal 2007 and a decrease of 19.3 percent over the seasonally stronger fourth quarter of fiscal 2007.
Gross margin for the first quarter of fiscal 2008 was 4.72 percent compared to 4.80 percent in the prior-year first quarter. The decline in gross margin was attributable to higher inventory costs, including those related to the closure of the UAE operations.
For the first quarter of fiscal 2008, operating income was $29.7 million, or .55 percent of net sales. This compared to operating income of $29.0 million, or .59 percent of net sales in the first quarter of fiscal 2007.
On a regional basis, operating income in the Americas was 1.54 percent of net sales compared to 1.59 percent of net sales in the first quarter of fiscal 2007. The decrease was primarily attributable to an increase in sales and operations staff to support growth and various strategic initiatives.
For the second quarter ending July 31, the company anticipates net sales to be in the range of $5.20 billion to $5.35 billion. This assumes year-over-year mid-single digit growth in the Americas and low-to-mid single digit growth in Europe on a local currency basis.
