Ingram Micro plans to use its $1.2bn cash in hand to further invest in the UK enterprise distribution market.
Only days after emerging as the new owner of CCD, Ingram chief executive Greg Spierkel said building a high-end computing operation both organically and by acquisition was a strategic priority “for the next two to three years”.
“We are still interested to find and fill out the portfolio [in the UK] so we will continue to work that as we see and find appropriate companies,” he said.
In Asia Pacific, Ingram said it already had a robust enterprise business, it was building one from scratch in North America and the acquisition of CCD represented the “start” of its efforts in EMEA.
“This is part of a longer term voyage of building a capability that is broader, in part because the vendors are pulling us in this direction and in part because we feel it is a healthy margin contribution arena,” said Spierkel.
The firm last night filed a 9% fall in Q3 profits to $42.3m (£25.5m) while sales fell 11% to $7.38bn (£4.45bn). On a sequential basis, earnings went up 67% and revenues grew 12%, the biggest quarter-on-quarter climb for nine years.
“The third quarter ended with a sense of optimism for both the overall economic environment and for our business. Demand for technology products and services improved over the last six months,” said Ingram’s boss.
The results were buoyed by an 11% fall in operating expenses to $338.7m, or 4.59% of total sales.
Asia Pacific led the recovery as the strongest performing region, followed by North America and EMEA returned to an operating profit of $13.5m compared to a $4.6m loss a year ago.
The distributor closed Q3 with $1.2bn in cash up $466m on the 2008 year-end balance, “a strong position that affords us the opportunity to invest in growth” said Spierkel.
The cost reduction programme Ingram embarked upon last year is all but over and should yield around $140m in aggregated annual savings from next year.
For this calendar year, Ingram now expects a single digit decline in sales but did not give further guidance.
“Clearly we are still living in a somewhat volatile world and as much as things are improving from a low position of two to three quarters ago, it is still a little choppy out there,” said Spierkel.