Tech Data Corporation Reports Fiscal 2011 Second-Quarter Results

The Tech Data Corporation, for with TD Computer 2000 is a subsidiary, yesterday announced results for the second quarter ended July 31, 2010.

Net income grew 16 percent to a second-quarter record of $41 million; Over 4 million shares repurchased during the quarter Net sales for the second quarter ended July 31, 2010, were $5.47 billion, an increase of 5.6 percent from $5.18 billion in the prior-year second quarter.

The strengthening of the U.S. dollar against certain foreign currencies during the second quarter of fiscal 2011, compared to the same period of the prior year, negatively impacted the year-over-year net sales comparison by approximately 6 percentage points. Operating income for the second quarter grew 22.1 percent to $65.8 million, or 1.20 percent of net sales, compared to operating income of $53.9 million, or 1.04 percent of net sales in the prior year second quarter. Second-quarter net income attributable to shareholders of Tech Data Corporation increased 16.2 percent to $40.9 million, or $0.82 per diluted share, compared to $35.2 million, or $0.70 per diluted share in the prior-year period.

The second-quarter results clearly demonstrate the strategic focus on improving profitability and return on capital employed through responsible growth, and by diversifying into more specialized offerings. Despite various macroeconomic uncertainties at the start of the quarter, the IT market grew at a good pace in both of our regions, allowing Tech Data to continue their focus on net revenue growth – growing with select customers and vendors, while shifting away from less profitable, or more capital-consuming business. This strategy has served Tech Data exceptionally well for the last several quarters, significantly improving the quality of their vendor and customer portfolios, delivering select market share gains, meaningful operating margin expansion, record earnings, and industry-leading return on capital employed.  Additionally, in the second quarter, Tech Data continued to put their strong balance sheet and excess cash to good use, announcing three acquisition agreements and buying back $170 million of stock under our share repurchase programs. 

To read the full results broken down and in more detail please click here