Bell hails "year of accomplishments" after fine Q4

Don Bell: Market conditions improved and we executed against our goals [in Q4]

After a tough year, distribution giant Bell Micro closed 2009 in style, with fourth-quarter sales and profit both enjoying impressive increases.

Revenue for the three months to 31 December stood at $837m (£555m), an increase of nine per cent both sequentially and year on year. Net income was $12.9m, compared to a net loss of $33.5m in Q4 2008.

Europe was the distributor's star performer, with sales up 14 per cent year on year to $351.7m, 42 per cent of the total. North American sales grew one per cent on 2008 to $354m. Latin America provided $130.8m in revenue, an annual increase of 19 per cent.

Bell's Components and Peripherals division, which provided 46 per cent of total sales, saw turnover rise more than a quarter year on year. But the firm's Solutions arm, which provided 54 per cent of revenue, endured a sales slump of three per cent.

For the full year, total worldwide sales were down 16 per cent to $3bn. But the San Jose-based broadliner still returned to black ink, banking $7.5m in net profit, compared to a net loss of $82.5m in 2008.

Bell indicated that it expects to post revenue of $780m-$815m in 2010's opening quarter. This would represent an annual increase of between nine and 14 per cent.

Last year saw Bell reach a satisfactory conclusion to its two-year legal wrangle with the US Securities and Exchange Commission (SEC). In September, the distributor got up to date with SEC filing requirements.

Earlier this year, the firm announced that the Commission had concluded investigating its books and would take no further action. This allowed Bell to relist on the NASDAQ stock market, having been absent for two years.

Across 2009, Bell also reduced total debt by eight per cent to $350m. Chief executive Don Bell described it as "a year full of accomplishments".

"We are pleased to report significantly improved profits and fundamentals in the fourth quarter as we concluded a year full of accomplishments," he added. " Sales increased in each major geography as market conditions improved and we executed against our goals."