Make us your home page
Instagram

Tech Data sales and earnings miss targets

Tech Data Corp., Tampa Bay's largest public company by revenues, missed its target for both sales and earnings in its third quarter due to accounting changes and slumping demand in the United States.

The Clearwater computer parts distributor reported net income of $45.9 million, or $1.21 per share, in the fiscal quarter ended Oct. 31. That's down 4 percent from a year ago and 11 cents shy of analysts' consensus estimates.

Net sales were $6.04 billion, down 8 percent from $6.59 billion in the prior-year period. Analysts had been anticipating about $6.2 billion.

"We continued to face weak macroeconomic environments and slowing demand, as well as challenges in our U.S. operations following the implementation of certain (accounting changes)," Tech Data CEO Robert M. Dutkowsky said. Specifically, the company changed the way it accounts for the sales of vendor warranty services and certain fulfillment contracts.

In rolling out its new software management system, some orders were delayed and customers were alienated, sparking at least a temporary loss in market share.

"You could always do something different," Dutkowsky said in an interview. "But we've installed (this system) 20 times in Europe. It works. … The learning curve is the reason we're not as productive today."

The quarter's results were also skewed by the weakening of certain foreign currencies against the U.S. dollar.

Take away the accounting changes, currency fluctuations and the exit of the Brazil and Colombia markets, and revenues would have been up 1 percent. "To be up 1 percent is basically flat," Dutkowsky said. "That says that tech spending … both in Europe and the Americas is kind of muted."

Tech Data is often viewed as a gauge for estimating consumer demand of technology, given its breadth and depth of products. Its stock fell 2 percent Tuesday.

Jeff Harrington can be reached at (727) 893-8242 or jharrington@tampabay.com.

Tech Data sales and earnings miss targets 11/20/12 [Last modified: Tuesday, November 20, 2012 8:34pm]
Photo reprints | Article reprints

© 2017 Tampa Bay Times

    

Join the discussion: Click to view comments, add yours

Loading...
  1. Equifax CEO Richard Smith steps down amid hacking scandal

    Personal Finance

    The chief executive of Equifax, the troubled credit reporting agency that suffered a massive data breach that affected as many as 143 million people, will retire, effective Tuesday, according to a statement by the company.

    Richard Smith, chief executive of Equifax, the troubled credit reporting agency that suffered a massive data breach that affected as many as 143 million people, will reportedly retire effective Tuesday.
[File photo: Joey Ivansco/Atlanta Journal-Constitution via AP]
  2. Bass Pro acquires Cabela's for $4 billion

    Retail

    Bass Pro Shops has acquired competitor Cabela's for a reported $4 billion. Bass Pro indicated it is seeking to appeal to all "outdoor enthusiasts" with the move, roping in hunting customers from Cabela's.

    Bass Pro Shops acquired Cabela's for $4 billion, Bass Pro announced Tuesday. | [JAMES BORCHUCK | Times]
  3. Tampa International named among least expensive airports

    News

    TAMPA — Florida airports apparently have a knack for getting it done cheaply.

    According to RewardExpert, Tampa International Airport is the fifth least expensive domestic airport. 
[CHARLIE KAIJO   |   Times
 file photo]

  4. Tampa-based vXchnge secures $200M loan to expand operations

    Corporate

    TAMPA — Tampa-based vXchnge, which operates data centers in 14 metro areas, has secured a loan for roughly $200 million for "major expansions and enhancements."

    Tampa-based vXchnge, a data center provider, secured a $200 million loan. Pictured is CEO Keith Olsen. | [Courtesy of vXchnge]
  5. No toll lanes north of downtown Tampa in three of four interstate proposals

    Transportation

    TAMPA — Express lanes may not be coming to downtown Tampa after all. Or at least not to the stretch of Interstate 275 that goes north through Bearss Avenue.

    Seminole Heights resident Kimberly Overman discusses the new interstate options with V.M. Ybor resident Chris Vela (left), Hillsborough County Commissioner Pat Kemp and HNTB consultant Chloe Coney during a Tampa Bay Express meeting Monday night at the Barrymore Hotel. [CAITLIN JOHNSTON  |  Times]