Ingram Micro Q3 results buoyed by weak dollar
Worldwide sales leap
Computer distie giant Ingram Micro said yesterday that it saw third quarter profit shoot up 15 per cent driven by strong sales in Asia and Europe.
Revenue rose by more than a billion dollars to $8.61bn from $7.51bn last year.
Ingram Micro said a weaker dollar contributed about five percentage points to its overall revenue growth.
Net income beat company expectations and jumped 24 per cent to $72.4m, or 41 cents per share, compared to the same period last year when the firm notched up $58.5m, or 38 cents per share.
In July this year, Ingram Micro reported a second quarter net income loss of $1.4m and consequently forecast a Q3 net income of around $67m to $71m. It had expected revenue of between $8.3bn to $8.5bn.
Europe, the Middle East, and Africa (EMEA) sales were said to be up 18 per cent in Q3 to $2.86bn, buoyed by a robust Euro. Sales in the Asia Pacific region leapt an impressive 36 per cent to $1.86bn.
Ingram Micro sales in North America rose at a more conservative pace of four per cent to $3.5bn while Latin American sales climbed nine per cent to $382m.
The firm splashed more cash on operating expenses compared to the same year ago period, spending $364m, or 4.23 per cent of revenues, versus $311.8m, or 4.15 per cent of revenues in Q3 2006. Ingram Micro attributed the extra cost to the "unfavourable impact" of warranty sales.
The Santa Ana-based firm, which is the world's largest computer distie, had a cloud over its head while an ongoing Securities and Exchange Commission (SEC) investigation cost Ingram Micro an estimated $15m, which had some impact on the firm's Q2 results.
An SEC Wells notice was issued which related to a number of transactions with McAfee Inc, formerly Network Associates Inc, between 1998 and 2000.
Ingram Micro said it expected to see fourth quarter net income grow in the range of $103m, or 58 cents per share, to $108m, or 61 cents per share. It said it hoped to see sales hit somewhere between $9.7bn to $9.95bn.
Despite the healthy figures, shares in Ingram Micro are currently trading on Wall Street at $19.4, down 2.66 per cent on the previous close.
The full results can be viewed here. ®