Tech Data Q4 numbers lifted by "healthy" IT market

Distribution behemoth Tech Data beat analysts' expectations in Q4 to post double digit sales gains in spite of a currency headwind. The world's second largest wholesaler warned, however that the seasonal sequential decline will be more marked due to the strength of consumer shipments over the Chris

Distribution behemoth Tech Data beat analysts' expectations in Q4 to post double digit sales gains in spite of a currency headwind.

The world's second largest wholesaler warned, however that the seasonal sequential decline will be more marked due to the strength of consumer shipments over the Christmas period.

Sales for the three months ended 31 January grew 13.3% to $7.1bn (£4.3bn) as foreign currencies weakened against the dollar to hit revenues by 6 percentage points, and profits rose from $70m a year ago to $77m (£47m).

Tech Data CEO Bob Dutkovsky said the numbers were underpinned by "a healthy technology spending environment" in its two major regions, with sales up 10.8% in North America to $2.78bn and 15% in Europe to $4.34bn.

He added that "solid" inventory management, moves into higher value enterprise server, storage and networking segments and acquisitions pushed up gross margins to 5.32% up from 5.20% a year earlier.

Sales, General & Administrative expenses went up to $261m or 2.67% of sales from $234m in Q4 2010, cash from operations improved 69% to $175.7m.

Looking to this quarter, Dutkovsky forecast year-on-year growth on a local currency basis across both operating regions.

"Although the seasonal sequential decline in sales may be slightly higher than the prior year due to the strength of our consumer sales in the fourth quarter of fiscal year 2011," he said.

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