Tech Data puts in strong Q3 performance

Tech Data's strong Q3 (ended 31st October) results saw net sales of $6.8bn, an increase of 6% from the prior-year quarter.

Gross profit was $335m, or 4.95% of net sales, compared to $326.1m (5.12% of net sales).

In Europe, net sales were $4.1bn (approximately 61% of worldwide sales), an increase of 8% in the same period last year.

"In Q3 our teams responded to robust demand for PCs in both regions and mobility products in Europe," said Robert M. Dutkowsky, CEO.

"Our operational focus drove good margin and expense management, resulting in excellent operating leverage. Our expansion in Europe has been at a quicker pace than anticipated this year.

"As we have said throughout the year, fiscal year 2015 is a market and operationally focused year for Tech Data.

"This dual focus, combined with our broad product and customer portfolio, have enabled us to capitalise on current market opportunities, improve our operating performance and grow non-GAAP earnings by 25% during the last nine months, while earning a return on invested capital of 11% for the trailing 12 month period.

"Tech Data's capabilities and strategic position in the IT ecosystem are stronger today than ever, and we are pleased with the trajectory of our business as we enter our final quarter of fiscal 2015."  

Dutkowsky said that an 'upside' for Tech Data's model is in the cloud. "Tens of thousands of resellers need a pathway to the cloud and the vendors don't know how to get them there," he added. "That will be our job and our opportunity.

"The Internet of Things represents an explosion of new devices, and all of those devices are going to put pressure on networks and data centres - so more servers, more storage, more networking.

"To make all of that be secure there will be a whole new set of vendors and new sets of technology that will focus on security. Those are areas where we have a strong presence."

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