Ingram Micro Earns $81.2M

The results compare with a loss of $8.3 million, or 6 cents per share, on revenue of $5.60 billion in the year-ago quarter.

The Santa Ana, Calif.-based distributor took a $13.6 million previously announced charge related to MicroWarehouse's bankruptcy filing but was helped by a lower tax rate and a $70.5 million benefit for the reversal of previously accrued income taxes related to the gain on the sale of SoftBank shares in 1999.

"The demand environment continues to be stable but not robust, with positive signals coming from many parts of the world," said Kent Foster, chairman and CEO of Ingram Micro, in a statement. "We are particularly pleased with the results of our European region, which generated a sequential sales improvement during the typically slow summer months. In addition, we maintained worldwide gross margins above 5.4 percent for the seventh consecutive quarter as a result of our profit-enhancement program, as well as intelligent pricing actions and superior customer programs."

North American sales were $2.56 billion, a decline of 17.4 percent vs. the year-ago quarter, which benefited from a Microsoft software licensing upgrade program.

In the fourth quarter, Ingram Micro expects sales to range from $5.70 billion to $5.90 billion, with net income excluding charges between $32 million and $37 million, or 21 cents and 24 cents per share.

"Our fourth-quarter guidance reflects seasonality generally in line with historical norms," Foster said in the statement. "Worldwide economic reports appear promising and the attitude of our customer base is relatively upbeat, yet our sales forecast does not reflect a surge in demand."