Tech Data net income more than doubled to $23m in Q1 FY09 (Q1 2008: $9m) on sales up 12.3 per cent to $6.1bn (Q1'08: $5.4bn).
The skinny profits show how little room there is for error in the computer distribution business. Gross margins improved year-on-year from 4.72 per cent to 4.86 per cent, on the back of better pricing and inventory management. Also last year's results included costs associated with the closure of the company's UAE subsidiary.
During the quarter, Tech Data improved its cash position by $33.4m to take its money pile to $520.7m, as of April 30, 2008.
For Q2, Tech Data forecasts sales of $6bn-$6.2bn, on the assumption that, year-on-year, North America sales are flat and that Europe produces mid-to-high single digit growth. Helping Europe along will be Scribona AG, a Nordic distie that Tech Data bought last week for $83m. Tech Data expects Scribona to bring up to $900m a year in revenue to the table.
Tech Data's earnings statement is here. ®