Feeds

Europe hurts Tech Data

Margins not gross enough

  • alert
  • submit to reddit

Secure remote control for conventional and virtual desktops

Tech Data’s second quarter earnings could be almost 50 per cent lower than expected because of continued problems at its EMEA operation, the distribution giant confirmed yesterday.

Preliminary results released Tuesday show net sales for the quarter ending 31 July will come in between $4.8bn and $4.82bn, while net earnings will be $12.5m to $16.5m. Tech Data had expected sales of $4.7bn to $4.85bn, generating net income of $24m to $27m. The figures exclude the costs of its ongoing EMEA restructuring program.

Tech Data said its Americas region had performed well, but European operations had “impacted our overall earnings expectations for the quarter.” Gross margins were down, “principally in the EMEA region.” The overhaul of the European unit begun last quarter should boost operating performance in the region.

It added that the outlook excluded “any potential impairment charges for deferred tax assets, goodwill and other long-lived assets, which could be material, resulting from the decline in our EMEA operating performance.” ®

Related stories

Ingram Micro sales well up in Q2
C2000 extends credit lines for SME resellers
Tech Data ' pales beside Ingram Micro' - CSFB
IT distributors have 'compelling valuations'

Choosing a cloud hosting partner with confidence

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
Big Content outs piracy hotbeds: São Paulo, Beijing ... TORONTO?
MPAA calls Canadians a bunch of bootlegging movie thieves
Google Glassholes are UNDATEABLE – HP exec
You need an emotional connection, says touchy-feely MD... We can do that
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
Just don't blame Bono! Apple iTunes music sales PLUMMET
Cupertino revenue hit by cheapo downloads, says report
Hungary's internet tax cannot be allowed to set a precedent, says EC
More protests planned against giga-tariff for Tuesday evening
US court SHUTS DOWN 'scammers posing as Microsoft, Facebook support staff'
Netizens allegedly duped into paying for bogus tech advice
Verizon bankrolls tech news site, bans tech's biggest stories
No agenda here. Just don't ever mention Net neutrality or spying, ok?
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
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.
New hybrid storage solutions
Tackling data challenges through emerging hybrid storage solutions that enable optimum database performance whilst managing costs and increasingly large data stores.
Business security measures using SSL
Examines the major types of threats to information security that businesses face today and the techniques for mitigating those threats.