TECD ( sold off $27 bounce $32) Posts Drop in Profit,
Cuts Outlook for Current Period
A WSJ.com News Roundup
CLEARWATER, Fla. -- Tech Data Corp. said profit fell 15% in the fiscal first quarter and warned of weak sales in the current period.
The No. 2 U.S. wholesaler of personal computers reported net income of $31.8 million, or 59 cents a diluted share, for the quarter ended April 30, compared with net of $37.2 million, or 71 cents a share, in the year-earlier period. Analysts surveyed by Thomson Financial/First Call were expecting a profit of 50 cents a share.
Sales fell 5% to $4.68 billion from $4.92 billion a year earlier.
Back in March, Tech Data posted fiscal fourth-quarter earnings above expectations but reduced its first-quarter estimate because of a slowdown in information-technology spending. At the time, the company projected first-quarter sales of $4.6 billion to $4.8 billion and earnings of 45 cents to 53 cents a share.
Looking forward, Tech Data said Wednesday it now expects to report fiscal second-quarter earnings of $21 million to $25 million, or 39 cents to 45 cents a diluted share, on sales of $4.1 billion to $4.3 billion. Analysts expected the company to report second-quarter earnings of 51 cents a diluted share.
Tech Data's first-quarter software sales rose 18%, while systems sales fell 18% and peripherals sales fell 4%. Networking sales, accounting for about 16% of total sales, were flat for the quarter. Peripherals sales represented 45% of total sales in the quarter, systems accounted for 25% and software for 14%.
At 4 p.m. Wednesday in Nasdaq Stock Market trading, Tech Data shares fell 12%, or $3.84, to $28.25.
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