Tech Data Reports Record Fourth Quarter And Fiscal Year Results
CLEARWATER, Fla., March 30 /PRNewswire/ -- Tech Data Corporation (Nasdaq: TECD - news) today announced record sales and earnings for the fourth quarter and fiscal year ended January 31, 1999. Sales in the fourth quarter increased 82.3% to $3.85 billion from $2.11 billion for the comparable quarter last year. Excluding the effect of acquisitions, fourth quarter sales growth rates were 12%, 28% and 11%, in the U.S., Europe and other international markets, respectively. Net income for the fourth quarter increased 39.6% to $36.5 million, or $.67 per diluted share, which includes an additional $3.2 million pre-tax gain from the sale of Macrotron AG. Excluding the gain on the sale of Macrotron, net income for the quarter ended January 31, 1999 totaled $34.5 million, or $.64 per diluted share, which is at the high end of the range the Company estimated in its February 2, 1999 preliminary earnings announcement. Net income in the fourth quarter last year totaled $26.1 million, or $.53 per diluted share. This year's fourth quarter results include a full quarter of operations for the company's Munich, Germany-based subsidiary, Computer 2000 AG, in which the company acquired a controlling interest in July 1998.
Sales for the year ended January 31, 1999, increased 63.4% to $11.5 billion, compared with $7.1 billion last year. Excluding the effect of acquisitions, annual sales growth rates were 17%, 27% and 15%, in the U.S., Europe and other international markets, respectively. Net income for the year increased 44.1% to $129.0 million, or $2.47 per diluted share. Excluding the $15.7 million pre-tax gain on the sale of Macrotron, net income for the year totaled $119.4 million, or $2.29 per diluted share, compared with $89.5 million, or $1.92 per diluted share last year.
''We are proud to report record results for both the quarter and fiscal year,'' commented Steven A. Raymund, Tech Data's chairman and chief executive officer. ''Our performance stands out even more today considering the intense competitive conditions facing our industry. Tech Data associates across the world deserve the credit for making these exceptional achievements possible.''
Among recent highlights, Tech Data completed a tender offer for additional shares of common stock of Computer 2000, increasing its ownership position to 99.3%. Other developments included the addition of custom configuration capabilities at Tech Data's IBM and Compaq FactoryDirect locations, which continue to bring new efficiencies to the reseller channel by enabling immediate shipments from manufacturing facilities. Compaq announced yesterday that it is further embracing this concept in support of its new PartnerDirect program for the Prosignia line. In addition, Tech Data's Web-based commerce with resellers is gaining momentum, and corresponding sales now approximate $2 million daily.
Certain matters discussed in this news release are forward-looking statements that involve a number of risks and uncertainties. Factors that could cause actual results to differ materially include the following: business conditions and growth in the personal computer industry and general economy; competitive factors, including compressed gross profit margins; inventory risks due to shifts in market demand; product availability; changes in product mix; labor strikes; and the risk factors listed from time to time in the company's reports filed with the Securities and Exchange Commission.
About Tech Data
Tech Data Corporation, founded in 1974, is a leading full-line distributor of technology products worldwide. The Fortune 500 company and its subsidiaries operate in over 30 countries, serving more than 100,000 resellers in the United States, Canada, the Caribbean, Latin America, Europe and the Middle East. In addition to distributing more than 75,000 products, Tech Data provides extensive pre- and post-sale training, service and support as well as high-quality configuration and assembly services and a full range of electronic commerce solutions. The company generated sales of $11.5 billion in its most recent fiscal year, which ended January 31, 1999. Tech Data's Web site can be found at www.techdata.com. |
