Tech Data Says Q4 Revenues Grew 80%

Computergram International, Feb 3, 1999

Computer products distribution giant Tech Data Corp previewed fourth-quarter results that show net income of $33m to $35m, or $0.61 to $0.64 per share, on sales up more than 80% year-over- year at around $3.8bn. Analysts surveyed by First Call were expecting earnings of $0.69 for the quarter.

Fourth-quarter results are the first to include a full quarter for the company's European subsidiary, Computer 2000 AG, in which it acquired a controlling interest in July. For the full fiscal year, the Clearwater, Florida-based company estimates sales of roughly $11.5bn, up 63% from last year, while net income will come in between $125.5m to $127.5m, or $2.40 to $2.43 per share - compared to net income in the prior year of $89.5m, or $1.92. For the current first quarter, Tech Data expects sales to be in the $3.7bn to $3.8bn range, with net income of $28m to $31m, or $0.52 to $0.57, also lower than the First Call consensus of $0.61. For fiscal 2000, total revenues are projected at $16bn, with net income of $126m to $132m, or $2.30 to $2.40. The company says projections for fiscal 2000 reflect the current competitive pricing environment in North America and Europe, as well as an unpredictable economic outlook in Latin America.