Systems sales perk up Tech Data figures

Tech Data improved its results for the second quarter ended 31 July after a 37 per cent growth in systems sales.

Tech Data improved its results for the second quarter ended 31 July after a 37 per cent growth in systems sales.

Turnover for the quarter was $5bn, compared with $4bn for the same period last year. Second quarter sales grew 43 per cent in the US and 16 per cent in Europe. Profit was $40.8m, beating analyst estimates of $36m. The distributor made $29.4m in the quarter last year.

Systems, including desktops, notebooks and servers, represented 29 per cent of total turnover, compared with peripherals at 44 per cent, networking products at 16 per cent and software at 11 per cent.

Steve Raymund, chief executive at the company, claimed that the increase in systems sales came from taking market share from struggling competitors.

"We've seen some significant exit of competition, and the majority of that business has found its home at this point," he said. "That growth won't continue unless we see more of this phenomenon in the second half of the year."