Channel Stocks On The Rise In Q3

Channel stocks were back on the rise in the third quarter, with seven of 10 companies sampled by Channelweb.com posting gains of at least 15 percent for their Sept. 30 closing prices, compared to their June 30 closing prices. During that period, the Dow Jones increased 15 percent and Nasdaq 15.7 percent, indicating that many channel companies fared better than average. Here's a closer look at some third-quarter numbers.

June 30, 2009: $1.15
Sept. 30, 2009: $3.49
Change: 203.5%


Bell Micro's stock soared dramatically in September after the company announced that it was current in filing with the SEC. The San Jose, Calif.-based distributor had been conducting an internal audit of its financial results dating back to 2006.

"The company can now move forward with a renewed management focus on serving our customers and executing our business plans," said Don Bell, president and CEO, in a statement.

June 30, 2009: $21.24
Sept. 30, 2009: $28.15
Change: 32.5%


The Melville, N.Y.-based distributor reported earnings ahead of revised expectations in late July. CEO Mike Long said in a statement that Arrow had been able to "radically simplify the business while remaining focused on our long-term goals."

Sales in its Enterprise Computing Solutions business fell 19 percent in the second quarter, indicative of larger companies holding back on IT spending, but the company has managed its costs through the recession.

"We continue to invest in opportunities to enhance our growth and enable us to become a more efficient and productive organization, despite the challenges of a weakening economy," Long said in a statement.

June 30, 2009: $32.71
Sept. 30, 2009: $41.61
Change: 27.2%


Tech Data's second-quarter earnings surged 59 percent and topped Wall Street expectations in late August, despite a 16-percent decline in sales. CEO Bob Dutkowsky also said the third quarter was expected to improve "with some moderation compared to the decline in the first half of the fiscal year."

June 30, 2009: $9.66
Sept. 30, 2009: $12.21
Change: 26.4%


A 26 percent improvement wasn't enough to save the job of former CEO Rich Fennessy, who was ousted on Sept. 8. When Tony Ibarguen took over on an interim basis, the stock didn't register any jump (it closed at $11.84 that date, down 4 cents).

June 30, 2009: $21.03
Sept. 30, 2009: $25.97
Change: 23.5%


Shares of Avnet closed as high as $27.33 (on Sept. 10) before falling back slightly in the last three weeks. In early August, the Phoenix-based distributor posted a $30.9 million loss on sales of $3.77 billion, a 21-percent decline.

June 30, 2009: $24.99
Sept. 30, 2009: $30.48
Change: 22%


Synnex announced stellar third fiscal quarter numbers on Sept. 21, including a 5-percent increase in earnings and a drop in sales of only 2 percent, which meant it was gaining market share on competitors. But its shares have fallen 5 percent since that announcement.

June 30, 2009: $24.52
Sept. 30, 2009: $28.32
Change: 15.5%


The Greenville, S.C.-based distributor reported a 20.4 percent decline in sales and a 14.3 percent decline in earnings during its fourth fiscal quarter announced in late August.

"We had excellent results in certain areas of our business, specifically our security and communications sales units," said Mike Baur, CEO, in a statement. "Overall, we are pleased with our North American sales results, which are improving. And while our international business remains flat, we continue to be cautiously optimistic."

June 30, 2009: $5.25
Sept. 30, 2009: $5.44
Change: 3.6%




PC Connection's stock has remained relatively stable during the last 90 days, closing at no less than $5.22 and no more than $6.26. At the end of July, the Merrimack, N.H.-based solution provider reported a $6.5 million loss on $377.3 million in sales, a 16.1-percent revenue decline compared to the year-ago quarter.

In early August, the company's GovConnection subsidiary was awarded a Mcirosoft GSA LAR (Large Account Reseller) authorization.

June 30, 2009: $6.76
Sept. 30, 2009: $6.86
Change: 1.5%


Like PC Connection, PC Mall is heavily focused on product sales, which have slumped in the recession. During the third quarter, the Torrance, Calif.-based company reported a 2 percent increase in public sector business sales for the second quarter, but SMB business fell 34 percent. Hoping to capitalize on a trendy market, the company's PC Mall Gov subsidiary formed a health-care-focused division during the third quarter.

June 30, 2009: $17.50
Sept. 30, 2009: $16.85
Change: -3.7%




Shares of Ingram Micro fell more than 9 percent on July 30 after the company reported that its earnings fell 57 percent and sales fell 25 percent in the quarter. Wall Street may have been spooked after CEO Greg Spierkel hinted that the Santa Ana, Calif.-based distributor might get more price aggressive in the market to capture back some lost share. Spierkel later said that Ingram had put enough new tools in place that would allow it to be more competitive.