Tech Data Sees 1Q Sales, Profit Slip
For the quarter ended April 30, Tech Data posted sales of $4.94 billion, down from $5.06 billion a year earlier but slightly higher than Thomson Financial/First Call’s analyst projection of $4.93 billion.
First-quarter 2007 earnings came in at $12.9 million, or 23 cents per diluted share, compared with $33.5 million, or 57 cents per share, a year earlier. Analysts had forecast earnings of 32 cents per share, excluding restructuring and other charges.
In the first quarter, the Clearwater, Fla.-based distributor recorded $4.9 million in charges related to workforce reductions in EMEA and another $1.6 million related to the write-off of fixed assets and facility consolidation in the region. This quarter, Tech Data expects restructuring charges of $11 million to $13 million.
The first-quarter results also include earnings of $3.9 million, or 7 cents per share, for the discontinued operations of Tech Data’s EMEA training business, which has been sold.
Tech Data’s sales in the Americas were $2.4 billion, a 4 percent year-over-year increase, and its EMEA sales fell 7.5 percent to $2.6 billion.
For the fiscal second quarter, Tech Data projects sales of $4.95 billion to $5.10 billion and earnings of $17 million to $20 million, or 30 cents to 36 cents per share. Analysts had estimated earnings of 38 cents per share on $4.83 billion in sales for the second quarter.
Shares of Tech Data closed at $34.98 Monday, up 37 cents from May 19.