Feeds

Shopping spree helps Arrow counter organic sales slump

Revenues rally but only if you don't look closely

Internet Security Threat Report 2014

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. ®

Beginner's guide to SSL certificates

More from The Register

next story
Scrapping the Human Rights Act: What about privacy and freedom of expression?
Justice minister's attack to destroy ability to challenge state
WHY did Sunday Mirror stoop to slurping selfies for smut sting?
Tabloid splashes, MP resigns - but there's a BIG copyright issue here
Google hits back at 'Dear Rupert' over search dominance claims
Choc Factory sniffs: 'We're not pirate-lovers - also, you publish The Sun'
EU to accuse Ireland of giving Apple an overly peachy tax deal – report
Probe expected to say single-digit rate was unlawful
Inequality increasing? BOLLOCKS! You heard me: 'Screw the 1%'
There's morality and then there's economics ...
While you queued for an iPhone 6, Apple's Cook sold shares worth $35m
Right before the stock took a 3.8% dive amid bent and broken mobe drama
4chan outraged by Emma Watson nudie photo leak SCAM
In the immortal words of Shaggy, it wasn't me us ... amirite?
prev story

Whitepapers

A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
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?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.