Computer 2000 parent Tech Data has warned that the European market may not yet have bottomed out, despite posting a spike in profits in the region in its second quarter.

The broadline distributor beat its expecations for a third consecutive quarter as it posted global net profit of $35.2m (£21.4m) on revenues of $5.2bn for the three months to 31 July.

Although revenues sank 16 per cent year on year, NASDAQ-listed Tech Data claimed it had stolen market share in what was a tough period.

Europe generated more than half of its top line as sales from the region fell seven per cent year on year in local currencies to $2.79bn. Operating profit for the region quadrupled to $22.5m, or 0.81 of sales.

Although Tech Data said demand was appearing to stabilise in the Americas region, it warned that demand on this side of the Atlantic may decline further, “which could impact operating results sequentially”.

However, chief executive Robert Dutkowsky remained upbeat, claiming that the firm is executing well in a challenging economic environment.

“We continue to invest in opportunities that are strengthening our expertise and expanding our IT solution offerings,” he added.