Distie acquisition helps Tech Data beat the street
Sales and profits up
Tech Data increased sales for the three months ended 31 October 2010 by 9.2 per cent to $6.16bn.
The distie giant's profits for the period were up to $81m, compared to $65.1m for the same period last year.
This gives earnings per share of $1.07, compared to 84 cents in 2009.
Operating margin was 1.31 per cent, compared to 1.15 per cent in the third quarter of 2009.
During the quarter Tech Data completed the acquisition of Triade Holding BV, which distributes consumer electronics in Benelux, Denmark and Norway. The distie originally said it would not include sales from these firms in its accounts, but changed its mind; Triade and its subsidiaries Mobile Communication Company BV and MCC Belgium are now included from the date of the acquisition.
Tech Data said in its market statement: "Based upon the final analysis of the acquisition structure, Tech Data has determined that it is appropriate to consolidate MCC, therefore, Triade and MCC have been included in the company's consolidated financial statements subsequent to the date of acquisition."
The distie said it hoped to continue with solid sales growth and says that the fourth quarter "could exceed historical seasonal patterns, primarily in the Americas..." ®