Feeds

Sales down at Black Box

Across the board

  • alert
  • submit to reddit

Black Box Corporation, the hyper-acquisitive networking equipment reseller, saw a big sales fall in the three months ended June 29, 2003, its Q1.

Group revenues were $128m, down 17 per cent from $154m last year. North American sales were $86m, down 20 per cent from last year's $36m. All other revenues were $8m, down 20 per cent from last year's $10m. Because Black Box buys so many companies, it would have been instructive for the reseller, to provide like-for-like sales, in the way that retailers do to strip out the effect of new store openings.

Net income for the quarter was $11.5m, 9 per cent of revenues, against $14.7m or 9.5 per cent of revenues last year. This remains a healthy margin for what is a dealership mostly selling commodity products and services and it shows the company has a strong grip on cost containment.

During the quarter, the company produced free cash flow of $16m. Here is what the money was used for: stock repurchases of $14 million; dividend payments of $1 million; and merger activity of $1 million. The Black Box also used $5 million of cash on hand for additional stock repurchases during the quarter.

Is it wise to buying back shares? If the company has excess capital it would be doing its stockholders a favour by distributing the cash by way of dividend. ®

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.