Feeds

Europe hurts Tech Data

Margins not gross enough

  • alert
  • submit to reddit

Remote control for virtualized 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'

Intelligent flash storage arrays

More from The Register

next story
MI6 oversight report on Lee Rigby murder: US web giants offer 'safe haven for TERRORISM'
PM urged to 'prioritise issue' after Facebook hindsight find
Assange™ slumps back on Ecuador's sofa after detention appeal binned
Swedish court rules there's 'great risk' WikiLeaker will dodge prosecution
You think the CLOUD's insecure? It's BETTER than UK.GOV's DATA CENTRES
We don't even know where some of them ARE – Maude
NSA mass spying reform KILLED by US Senators
Democrats needed just TWO more votes to keep alive bill reining in some surveillance
prev story

Whitepapers

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.
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.
Designing and building an open ITOA architecture
Learn about a new IT data taxonomy defined by the four data sources of IT visibility: wire, machine, agent, and synthetic data sets.
How to determine if cloud backup is right for your servers
Two key factors, technical feasibility and TCO economics, that backup and IT operations managers should consider when assessing cloud backup.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?