Daisytek Reports Earnings Increase, Offers To Acquire European Distributor

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Daisytek International reported $3.9 million in net income, or 20 cents per diluted share, compared with $3.1 million in earnings, or 21 cents per diluted share, in the year-ago quarter.

Revenue in the quarter increased 23 percent to $324 million, compared with $264.1 million for the same period last year.

"Daisytek has again delivered earnings and revenue to meet expectations despite the uncertain global economic climate," said Jim Powell, president and CEO of Plano-based Daisytek.

Daisytek also said it made an offer to acquire full control of ISA International, a $510 million distributor in Europe that indirectly owns 47 percent of Kingfield Heath, a U.K.-based wholesaler of office products.

The directors of ISA intend to unanimously recommend Daisytek's proposed offer, and 56.5 percent of shareholders have committed to accept it, according to both companies.

"Both ISA and Kingfield Heath have shown progress over the last six months, and despite short-term funding issues, we believe they represent excellent potential for future returns. Our investment, and proposed offer for 100 percent of ISA, is an important step in our vision to become the world's largest distributor of computer supplies, office products and accessories," Powell said.

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