Tech Data CEO: Company Is 'Winning In The Marketplace' Following Key Acquisition


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Tech Data CEO Bob Dutkowksy said the company has gained market share in several key countries and product categories following its $2.6 billion acquisition of Avnet Technology Solutions.

The Clearwater, Fla.-based distributor said its published growth rates indicate that both Tech Data's broad line and advanced technology businesses performed well in comparison with other companies.

"Our combined teams across the company are not only competing; they are winning in the marketplace," Dutkowsky told Wall Street analysts on Thursday. "It was a strong performance for Tech Data, and one that we would stack up against our competitors."

[Related: Tech Data Ramps Up Program To Help Avnet TS Partners Master Microsoft Azure, Legacy Partners Master AWS And IBM SoftLayer, Bluemix]

Dutkowsky's comments come four months after competitor Arrow Electronics announced that it had agreements in place to grab more than $350 million in annual business from other distributors in the coming quarters. Dutkowsky said Tech Data expects to continue gaining profitable market share in key geographies and segments as the company expands its capabilities in next-generation technologies. 

Tech Data is trying to position the recently acquired Technology Solutions business to have a focus beyond data centers. "We're building a distributor that doesn't care where the workload moves," Dutkowsky said.

The distributor said it is recruiting new vendors and building new skills in areas like converged infrastructure, solid-state infrastructure and software-defined computing, Dutkowsky said. This will enable Tech Data to select architectures that will give the distributor an advantage in the marketplace, Dutkowsky said.

"The data center is in transition, and we are transitioning our business along with that transition," Dutkowsky said. "In some regard, I think we're leading it."  

Tech Data saw sales for the quarter ended April 30 climb to $7.66 billion, up 29 percent from $5.96 billion the year earlier. That handily beat Seeking Alpha's projection of $7.32 billion.

Net income, meanwhile, fell to $30.7 million, or $0.82 per share, down 8 percent from $33.4 million, or $0.94 per share, last year. On a non-GAAP basis, however, net income was $70.1 million, or $1.87 per share, up 89 percent from $37 million, or $1.05 per share, last year. That smashed Seeking Alpha's non-GAAP earnings estimate of $1.39 per share in the most recent quarter.

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