Distributor Tech Data reported another quarter within expectations, and with revenues passing the USD 9 billion mark for the first time, according Telecompaper. The company also announced a new partnership with Microsoft covering Poland, the Czech Republic, Slovakia, Hungary and Romania, and focused on Office 365, Azure and systems for BI, IoT and Analytics. The cooperation aims to accelerate the adoption of Microsoft’s software and cloud systems in these countries and will therefore also includes investments in Tech Data resources, marketing initiatives and the company’s global cloud transaction platform StreamOne. There will also be a new Tech data “centre of excellence” in Prague to provide reseller support for all Microsoft software.
The deal will help both Microsoft and Tech Data expand in these countries. For Tech data specifically, it will be introducing its expertise and tools, such as the StreamOne platform, to Slovakia, Hungary and Romania, which joined Tech Data’s footprint following its acquisition of Avnet’s Technology Solutions business in February of this year. Tech Data said it will target reseller recruitment and enablement efforts in the SMB and enterprise segments for the the Eastern European region.
Revenues for the third quarter to end October leaped 41 percent year-on-year to a record USD 9.13 billion, well within expectations and boosted by the company’s recent acquisition of Avnet. The operating profit went 27 percent higher to USD 79.6 million though the margin slipped to 0.87 percent from 0.97 percent the year before. The net profit lifted 2 percent to USD 37.3 million, while diluted earnings per share slid 6 percent to USD 0.97. The adjusted EPS rose 39 percent to USD 2.0. Americas made up 44 percent of revenues, with Europe taking 53 percent and Asia Pacific 3 percent.
CEO Robert Dutkowsky noted that the company’s pricing discipline and cost controls moved adjusted EPS into positive territory. He also said Tech Data generated USD 70 million of cash from operations and paid down USD 350 million of its debt.
Looking to the next quarter, Tech Data is guiding for fourth quarter revenues of USD 10.25-10.80 billion, EPS at USD 2.39-2.69 and adjusted EPS at 3.35-3.65.
