Ingram Micro's growth in June was higher than it expected, mainly due to e-tail and retail growth in the UK and Germany, but it is also prepared for a slow European Q3.
CEWO Alain Monie: "[It was] slightly above what our expectation was, but it was something that we've been working on. The e-tail and retail is one of the areas where we're doing a very good job, I think, particularly in Germany."
In Europe, it had solid growth in local currencies, benefiting in part from stronger sales in e-tail and retail customers. The SMB market remained a relatively highlight for most of the region and it believes it is gaining further share in this important segment.
SMB growth was a driver of strong double-digit revenue increases in Germany and in the UK, which has now grown its SMB business for nine consecutive quarters. Additionally, the data capture business had double-digit sales growth, as it expands the customer base in the region.
France's revenues declined modestly, primarily due to a large deal last year that did not repeat. France had solid sales into SMB and corporate resellers, which helped drive an increase in gross margin versus last year. The country is also adding new vendors, which resulted in a slight increase in market share during the quarter.
The Benelux region continues to be impacted by very weak economic conditions. "However, our focused efforts in the SMB market are paying off and we're regaining ground," he says. "Looking out over the next several quarters, we're not anticipating that the European economies or the demand environment will improve. As such, we will continue to take prudent actions to help ensure that our cost structure is appropriately aligned with the level and mix of anticipated revenues and margins."
"IP telephony and SIP are now widely accepted. The connectivity has become more affordable and businesses are moving key services to the cloud. We see a majority of new RFPs requesting hosted."
Paul Harrison, Sales Director, thevoicefactory