Distribution giant Tech Data says it gained share in key geographies in its fourth quarter, despite registering a fall in both sales and profits.
Global sales fell one per cent annually in Tech Data's full year ending 31 January to $26.2bn (€24.84bn), while GAAP operating income saw a steeper 27 per cent year over year drop to $291.9m. On a constant currency basis, revenues saw a one per cent boost.
From a geographical perspective, sales in the Americas - which represent 40 per cent of worldwide net sales - came in flat at $10.4bn, as operating income fell 38.8 per cent to $144.2m, down from the $235.6m reported last year.
Meanwhile, European sales decreased by one per cent to $15.8bn compared to the previous year, with operating income slipping 19.1 per cent to $161.6m.
On a quarterly basis, overall Q4 sales dropped by one per cent annually to $7.4bn while GAAP operating income tumbled by 29 per cent year over year to $103.1m.
Non-GAAP operating income however grew by five per cent annually in Q4 to $122.1m. Full-year non-GAAP operating income also grew by six per cent to $338.9m.
"Our strong Q4 results capped an historic year for Tech Data - a fiscal year of significant strategic progress and strong financial performance. In fiscal 17 we achieved all of our primary financial objectives: we gained share in key geographies; gained share in select product categories; and with key vendors. We also improved non-GAAP operating income; and delivered our highest non-GAAP earnings per share in the history of our company," said Robert Dutkowsky, Tech Data's CEO.
"Tech Data accomplished all of this despite a dynamic global geopolitical and economic environment, a significant vendor consolidation, and an evolving IT consumption model. On top of this, we recapitalised the company and entered into the largest, most transformative acquisition in our company's history which we completed last week. Our fiscal 2017 performance clearly validates our strategy and speaks to the strength of our operations, the quality of our management team, and the exceptional talent and hard work of our employees."Tech Data is not providing financial guidance for its first quarter of its fiscal year 2018 due to the short timeframe between the distributor's fourth-quarter results and the completion of the Avnet TS buyout, which closed in February. However, Tech Data claims that it will provide financial guidance for the combined Tech Data - Avnet TS company along with its Q1 fiscal year 2018 results.
A summary of what you get if you subscribe to our premium market intelligence service
Matthew Polly says CrowdStrike is looking to branch out from the UK and into mainland Europe
Southampton-based VAR states that further acquisitions are in the pipeline
With UKFast launching a public cloud consultancy, Tom Wright asks if this is the way forward for all local hosting providers