Tech Data has lifted its top and bottom lines in its third quarter, enjoying double-digit year-on-year growth in both American and European non-GAAP operating income.
For the three months ending 22 November, worldwide non-GAAP operating income saw a 14 per cent year-over-year boost to $81.1m, on net sales that rose one per cent compared with the previous year to $6.49bn (€6.1bn). Non-GAAP margin grew from 1.1 per cent reported in the same quarter last year to 1.25 per cent this time out.
GAAP operating income however dipped by eight per cent year over year to $62.9m and GAAP margins dipped to 0.97 per cent from 1.06 per cent last year.
From a geographic breakdown, Tech Data's European revenue - which totals 60 per cent of worldwide sales - saw a one per cent boost year over year to $3.9bn. On a constant-currency basis this translates to a five per cent growth. Non-GAAP operating income swelled by 11 per cent compared with last year's corresponding quarter to $42.2m.
The Americas, meanwhile, posted $2.6bn in sales, a two per cent climb year over year as well as a two per cent climb in constant currencies, and a non-GAAP operating income of $42.5m, a 16 per cent improvement on the same quarter last year.
"We are pleased to report that Tech Data delivered a strong performance in Q3. While the overall IT demand environment remained challenging in both regions, our teams proved they were up to the task, turning in top line growth and excellent earnings improvement," said Bob Dutkowsky, chief executive at Tech Data.
"Higher sales, coupled with excellent expense management, delivered double-digit growth in non-GAAP operating income, double-digit growth in non-GAAP net income, and double-digit growth in non-GAAP earnings per share to a record Q3 level. During the quarter we announced that we entered into a definitive agreement to acquire Avnet's Technology Solutions business. We believe the strategic and financial benefits resulting from this transformative combination are compelling for our customers, vendor partners, employees and shareholders, and we are excited about the future opportunities ahead."
Tech Data is in the middle of what is perhaps IT distribution's biggest-ever merger, after signing a deal to acquire the Technology Solutions arm of Avnet for $2.4bn in cash. The deal is expected to close during the first half of 2017.
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