The Channel logo

News

By | John Oates 24th May 2006 10:19

Tech Data profits evaporate

Ouch...

Computer 2000's parent, Tech Data saw its shares rise slightly yesterday, despite the company posting a big fall in first quarter profits.

The distie watched turnover fall by 2.4 per cent to $4.9bn for the first quarter of 2007, ended 31 April 2006.

Profits also fell sharply - from $33.5m in the first quarter of 2005 to $12.9m this year. The company blamed restructuring costs for the shortfall. During the period it sold off its European training business Azlan Training to Global Knowledge for an undisclosed amount.

Gross margins also declined from 5.22 per cent a year ago to 4.8 per cent.

In Europe the firm spent $4.9m sacking staff and $1.6m writing off fixed assets. It espects the total cost to reach or exceed the high end of estimates.

Looking forward, Tech Data forecasts restructuring costs in Europe of between $11m and $13m in the current quarter. It predicts net sales of between $4.95bn and $5.1bn and profits of $17m and $20m.

See all the figures on Tech Data's website here. ®

alert Send corrections

Opinion

Alexandre Mesguich

Change is order of day as tech giants shift strategy gears
Partnership

Frank Jennings

Confused? No problem, we have 5, no 6, no 7... lots of standards

Chris Mellor

VC sequence could end not with a bang, but a whimper
Sad man stares glumly over boxed contents of desk. Image via shutterstock (Baranq)

Features

money trap conceptual illustration
Big boys snare the unwary with too-good-to-be-true deals
Angus Highland cow
Pet carriers not wanted for whitebox stampede
FBcoldstoragearray
Sorry OpenStack and Open Compute, we're not all Facebook
Gary Kovacs, CEO of AVG. Pic: World Economic Forum
Scammy download sites? Government snooping? Run of the mill for Gary Kovacs