Feeds

Shopping spree helps Arrow counter organic sales slump

Revenues rally but only if you don't look closely

Top 5 reasons to deploy VMware with Tegile

Healthy organic sales growth has once again proved slippery for enterprise tech bellwether Arrow Inc to grasp, though demand for heavy duty software and hardware started to re-emerge.

At group level, the tech distie reported revenues of $5.68bn, up seven per cent year-on-year as reported – but this was largely due to acquisitions, with organic expansion limited to just one per cent.

El Chan has noted on numerous occasions – whether it be Avnet, Ingram Micro, Tech Data or indeed Arrow – that acquisitions have become a weapon that wholesalers use in a bid to overcome revenue stagnation.

"We're pleased by the returns from our strategic growth investments," said CEO Michael Long in a conference call with City types.

The Global Components (GC) division - CPUs, memory etc - increased turnover by five per cent as reported to $3.57bn, or two per cent on a like-for-like basis. This was the fourth consecutive quarter of positive trends.

"The overall market remains stable with lead times and cancellation rates within the normal ranges," Long added.

Arrow's Enterprise Computing Solutions unit grew by 10 per cent to $2.11bn, but this was "principally" off the back of the Computerlinks buyout. Discount that and organic growth disappeared and is replaced by a one per cent decline.

Despite this, Long said:

"Software and services continued to deliver good growth for our ECS business, and hardware recovered from the first quarter as we anticipated".

He said servers specifically continue to represent something of a "headwind" for ECS but security, software and storage were helping to counter the trend.

Operating income for the GC and ECS business was up nearly 14 per cent and 18.8 per cent respectively, to $159.6m and $95.9m. After group charges for restructuring, integration etc were discounted, operating profit for GC and ECS was $208.3m, versus $155.8m a year earlier.

Profit after tax bounced to $127.8m from $89.93m.

The company exited the quarter with $159m in cash flow from operations. ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
Ex-US Navy fighter pilot MIT prof: Drones beat humans - I should know
'Missy' Cummings on UAVs, smartcars and dying from boredom
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
The 'fun-nification' of computer education – good idea?
Compulsory code schools, luvvies love it, but what about Maths and Physics?
'Cowardly, venomous trolls' threatened with TWO-YEAR sentences for menacing posts
UK government: 'Taking a stand against a baying cyber-mob'
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
prev story

Whitepapers

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.
Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
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.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.