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Tech Data has stellar quarter
A 17 percent gain in sales in the Americas puts an added bounce in the company's stock.
By Madhusmita Bora, Times Staff Writer
Published August 23, 2007
Strong sales in the Americas and currency gains in Europe drummed up second-quarter profits and record sales for Clearwater-based Tech Data Corp. "It's the best quarter and the best balance sheet in a long time," said Bob Dutkowsky, CEO of Tech Data, a computer products distributor and the largest public company by revenues in the Tampa Bay area. Wall Street celebrated the results sending stocks soaring 9.3 percent in pre-market trading. Dutkowsky said the company will continue to look for new business opportunities and product lines, while talking up and recruiting more customers. "It's important to note that we are not declaring victory here," he said. "We are running a marathon and not sprinting." Tech Data shares closed at $37.70 on Wednesday, up 7.01 percent. The computer products distributor reported earnings of $7.2-million, or 13 cents per share, compared with a year-ago loss of $155.5-million, or $2.81 per share. Sales for the quarter ended July 31 jumped 13.6 percent, to $5.6-billion, compared with $4.9-billion a year ago. The results accounted for a $20.9-million charge related to the company's exodus from Israel, the United Arab Emirates and the closure of a European logistics center. The operating income in Europe improved 91 basis points, the company said. Net sales in the Americas region, comprising Latin America, the United States, Canada and exports to the Caribbean, climbed 17 percent. In Europe sales jumped 10.3 percent. The sales numbers in the Americas bettered industry standards, said Ben Radinsky, an analyst with Bear, Stearns & Co. "The silver lining is the continued gains in solid growth in terms of guidance," Radinsky said. Tech Data predicts third-quarter sales of $5.75-billion to $5.9-billion, surpassing analyst predictions of $5.67-billion. Madhusmita Bora can be reached at mbora@sptimes.com or (813) 225-3112.
[Last modified August 22, 2007, 23:02:08]
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