Distribution behemoth Arrow Electronics has beaten quarterly profit expectations on the back of a double-digit hike in sales of enterprise kit.
The distributor today reported a net profit of $174.7m (£111.3m) for its final quarter ended 31 December, flat on the same quarter last year but well ahead of expectations.
Sales at its Enterprise Computing Solutions (ECS) arm – which sells servers, storage, networking, virtualisation and software – hiked by 11 per cent year on year to $2.22bn, with European sales "at the high end of normal seasonality".
Components revenue fell seven per cent to $3.19bn but chief executive Michael Long said it had been an "excellent year".
"We delivered strong results in the fourth quarter, with non-GAAP earnings per share of $1.22 well ahead of our expectations, and strong cashflow from operations," he said.
Arrow maintained a cautious outlook for its current quarter, citing the looming US fiscal cliff and the recent contraction in the eurozone economy.
Against this backdrop, the distributor is embarking on an "incremental productivity enhancement programme" designed to lop $40m off its annual expense bill.
It expects Q1 sales to reach $4.6bn to $5bn, with component sales hitting $3.05bn to $3.25bn and enterprise sales reaching $1.55bn to $1.75bn.
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