Ingram slips into the red in Q2

One-off charge relating to the deployment of a new software system sees distie make a $34m loss

Ingram Micro has announced it made a $34m (£21.84m) loss in the second quarter as it outlines plans to save $100m by undertaking "lean corporate initiatives".

For the three months to 4 July, Ingram made a $34m loss compared with a $51m net profit the year before thanks to a $116m one-off charge relating to an internal software system. Non-GAAP net profit - which excludes the charge - was up two per cent to $88m on revenue, which fell 3.3 per cent over the same period to $10.6bn.

Ingram's chief financial officer, Bill Humes, explained that the $116m charge relates to an "impairment of internally developed software".

In the earnings release, Ingram also outlined its plans to save $100m through efficiency measures.

"In July 2015, Ingram Micro began taking actions globally on its previously announced cost savings programme, including implementing lean corporate initiatives and further empowering individual countries where much of the actual business motion occurs," the firm said in a statement.

"These actions are expected to enable the organisation to get closer to customers and partners and support more rapid decision making at the country level, while producing additional efficiency and productivity gains."

Ingram said some staff will be impacted by the measures but those that are have already been notified.

Ingram's chief executive, Alain Monié, said Q2 was a success.

"Our teams are doing a great job delivering increasingly rich and innovative products and services to our customers and vendor partners through product and macro-economic cycles," he said.