Difficult economic times blamed for drop in earnings.
IT reseller and services company Tech Data Corp. said yesterday that sales for its first quarter ended April 30 were $3.91 billion, roughly flat when compared with last year when the company posted revenue of $3.92 billion during the same period. Net income was $21.5 million, or 38 cents per share, a sharp decline from a year ago when Tech Data reported earnings of $35.1 million, or 60 cents per share.
The results include some revenue and earnings booked by the Azlan Group, a U.K.-based distributor of networking products that Tech Data acquired in March.
In a statement, Tech Data chairman and CEO Steven Raymund blamed the drop in earnings on "difficult economic times." Raymund added that moves such as the Azlan acquisition will help diversify the company's revenue stream and give it a bigger footprint in more specialized IT markets.
Tech Data is unlikely to meet earnings estimates for its second quarter. The company forecasts profits during the period of between $19.5 million and $22 million, or 34 cents and 38 cents per share. Analysts had expected Tech Data to produce second-quarter earnings of 41 cents.
How Enterprises Are Attacking the IT Security EnterpriseTo learn more about what organizations are doing to tackle attacks and threats we surveyed a group of 300 IT and infosec professionals to find out what their biggest IT security challenges are and what they're doing to defend against today's threats. Download the report to see what they're saying.
Infographic: The State of DevOps in 2017Is DevOps helping organizations reduce costs and time-to-market for software releases? What's getting in the way of DevOps adoption? Find out in this InformationWeek and Interop ITX infographic on the state of DevOps in 2017.
2017 State of IT ReportIn today's technology-driven world, "innovation" has become a basic expectation. IT leaders are tasked with making technical magic, improving customer experience, and boosting the bottom line -- yet often without any increase to the IT budget. How are organizations striking the balance between new initiatives and cost control? Download our report to learn about the biggest challenges and how savvy IT executives are overcoming them.