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

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.