Feeds

Tech Data profits melt in Q2

Curse of EMEA strikes again

Protecting users from Firesheep and other Sidejacking attacks with SSL

Tech Data has given up hope of turning a profit in the second quarter after its figures were scuppered by a poor performance in EMEA.

The distributor’s preliminary results for the quarter ending July 31 show net sales of $4.94bn, compared to the $4.95bn to $5.1bn it had predicted. Last year it reported sales of $4.8bn.

Net income, excluding restructuring and consulting charges related to EMEA and other charges, is forecast to be “near breakeven”, a far cry from the previously forecast profit of $17m to $20m, excluding charges.

The figures were knocked off course because of lower than forecast sales in EMEA, and lower than expected gross margin, principally (presumably not exclusively) in that troublesome EMEA region.

The numbers were further strained because its original forecast included a 38 per cent effective tax rate, but because of the decline in EMEA income, its effective tax rate is now forecast to be 80 per cent or more.

Tech Data warned its numbers could be further dented by impairment charges for goodwill and/or an increase in the valuation allowance for deferred tax assets because of the decline in EMEA. These could be “substantial” it warned.

Chairman and CEO Steve Raymund said the Americas operation had performed to forecast in a tough market, but “It will undoubtedly take longer than originally anticipated to improve our operating performance in EMEA.”

Earlier this month, Ingram Micro also reported a softening EMEA market, but said it managed to meet its forecasts by making the best of other markets. ®

Choosing a cloud hosting partner with confidence

More from The Register

next story
Hey, Scots. Microsoft's Bing thinks you'll vote NO to independence
World's top Google-finding website calls it for the UK
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
OECD lashes out at tax avoiding globocorps' location-flipping antics
You hear that, Amazon, Google, Microsoft et al?
Show us your Five-Eyes SECRETS says Privacy International
Refusal to disclose GCHQ canteen menus and prices triggers Euro Human Rights Court action
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
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?
Security and trust: The backbone of doing business over the internet
Explores the current state of website security and the contributions Symantec is making to help organizations protect critical data and build trust with customers.