Tech Data Meets 3Q Expectations; Earns $32.8M

The Clearwater-based distributor earned $28.5 million, or 51 cents per share, in the year-ago quarter, which included $7 million in special charges. Sales in the third quarter were $3.81 billion, down 10 percent from the $4.22 billion for the same period last year.

Tech Data has earned $103.2 million, or $1.77 per share, on sales of $11.73 billion through the first three fiscal quarters, compared with net income of $74.3 million, or $1.34 per share, on sales of $13.03 billion for the same period last year.

"Such strong results speak volumes about Tech Data's ability to adjust well to the most challenging economic conditions in industry history," said Steve Raymund, chairman and CEO, in a statement. "The IT slowdown has profoundly affected the earnings of just about every IT company today. We're very pleased to have the right team and strategy in place to continually achieve our objectives."

U.S. sales declined 18 percent, while sales grew 3 percent in Europe and fell 17 percent in the rest of the world.

Software sales increased 11 percent, while revenue in peripherals, networking and systems declined 17 percent, 9 percent and 8 percent, respectively. Peripherals accounted for 43 percent of sales, systems 25 percent, software 18 percent and networking 14 percent.

Tech Data plans to sell its Argentina operations to local management, which will result in a charge of $2 million to $4 million, according to the company.

For the fourth quarter ending Jan. 31, 2003, Tech Data expects to report net income of $31 million to $34 million, or 53 cents to 58 cents per diluted share, on sales of $3.8 billion to $3.95 billion. Thomson Financial/First Call projected earnings of 64 cents for the fourth quarter. The forecasts excludes the special charges associated with Argentina.

Shares of Tech Data closed at $33.27 Monday, down 79 cents per share, or 2 percent.