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To: Steve Anglin who wrote (565)6/7/1999 4:22:00 PM
From: Duker  Respond to of 584
 
Tech Data Reports Record First Quarter Sales; Net Income Increases 21%

CLEARWATER, Fla., June 7 /PRNewswire/ -- Tech Data Corporation (Nasdaq: TECD - news) announced today record sales for its first quarter ended April 30, 1999. Sales for the quarter increased 77% to $3.88 billion from $2.18 billion for the comparable quarter last year. Net income increased 21% to $28.0 million, or $.53 per diluted share, compared with last year's first- quarter net income of $23.1 million, or $.46 per diluted share.

The company experienced strong first quarter sales in all product divisions, led by the systems division which increased 104% over the comparable period last year. Peripherals, software and networking sales grew 78%, 71% and 49%, respectively. Excluding the effect of acquisitions, first quarter sales growth rates were 17%, 18%, 12% and 17% in the U.S., Europe, other international markets and worldwide, respectively. U.S. business represented approximately 46% of overall sales during the quarter, while Europe and other international markets totaled 49% and 5%, respectively.

Recent announcements bolster the company's market position, including an unprecedented outsourcing agreement with GE Capital IT Solutions that is projected to generate $2 billion in annual incremental revenue for Tech Data upon full implementation. In another major development, Compaq Computer Corp. recently selected Tech Data as one of four partners in its North American Distributor Alliance Program, resulting in significant additional business opportunities. Tech Data also recently announced the successful tender offer to acquire the outstanding common shares of Globelle Corporation, a leading distributor in Canada that will double the company's size in this market. Tech Data now owns 82% of Globelle and is proceeding with its integration strategy.

''Our momentum is building as we enter this exciting new era in our 25-year history,'' commented Steven A. Raymund, Tech Data's chairman and chief executive officer. ''The last two decades have been a terrific success story for Tech Data. We view the most recent developments as the threshold to an even more dynamic future.''

Certain matters discussed in this news release are forward-looking statements that involve a number of risks and uncertainties. Factors that could cause actual results to differ materially include the following: business conditions and growth in the personal computer industry and general economy; competitive factors including compressed gross profit margins; inventory risks due to shifts in market demand; product availability; changes in product mix; labor strikes; and the risk factors listed from time to time in the company's reports filed with the Securities and Exchange Commission.

About Tech Data

Tech Data Corporation, founded in 1974, is a leading full-line distributor of technology products worldwide. The Fortune 500 company and its subsidiaries operate in over 30 countries, serving more than 100,000 resellers in the United States, Canada, the Caribbean, Latin America, Europe and the Middle East. In addition to distributing more than 75,000 products, Tech Data provides extensive pre- and post-sale training, service and support as well as high-quality configuration and assembly services and a full range of electronic commerce solutions. The company generated sales of $11.5 billion in its most recent fiscal year, which ended January 31, 1999. Tech Data's Web site can be found at www.techdata.com.

FOR MORE INFORMATION CONTACT:
Jeffery P. Howells, Executive Vice President and Chief Financial Officer
727-538-7825 (jhowells@techdata.com)
or
Arthur W. Singleton, Vice President, Treasurer and Secretary
727-538-7083 (asinglet@techdata.com)
SOURCE: Tech Data Corporation

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More Quotes and News: Tech Data Corp (Nasdaq:TECD - news)
Related News Categories: computer hardware, computers, earnings

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To: Steve Anglin who wrote (565)6/7/1999 4:23:00 PM
From: Duker  Read Replies (1) | Respond to of 584
 
Financials

TECH DATA CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(In thousands, except per share amounts)

April 30,
1999 1998

Net sales $3,877,158 $2,184,366
Cost and expenses:
Cost of products sold 3,651,916 2,044,599
Selling, general and
administrative expenses 158,249 94,801

3,810,165 2,139,400

Operating profit 66,993 44,966
Interest expense 16,914 7,954
Net foreign currency
exchange loss 4,757 ---

Income before income taxes 45,322 37,012
Provision for income taxes 17,179 13,815

Income before minority
interest 28,143 23,197
Minority interest 119 92

Net income $ 28,024 $ 23,105

Net income per
common share:
Basic $ .55 $ .48
Diluted $ .53 $ .46

Weighted average common
shares outstanding:
Basic 51,133 48,285
Diluted 57,421 50,323

TECH DATA CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(In thousands)

April 30, January 31,
1999 1999
ASSETS

Current assets:
Cash and cash equivalents $ 223 $ 8,615
Accounts receivable, net 1,676,905 1,796,045
Inventories 1,284,590 1,369,351
Prepaid and other assets 104,707 113,952

Total current assets 3,066,425 3,287,963
Property and equipment,
net 131,916 126,537
Excess of cost over
acquired net assets, net 322,503 345,326
Other assets, net 55,982 85,161

$3,576,826 $3,844,987

LIABILITIES AND
SHAREHOLDERS' EQUITY

Current liabilities:
Revolving credit loans $ 784,986 $ 817,870
Accounts payable 1,291,679 1,503,866
Accrued expenses 246,079 241,170

Total current liabilities 2,322,744 2,562,906
Long-term debt 308,482 308,521

2,631,226 2,871,427

Minority interest 1,657 6,269

Total shareholders' equity 943,943 967,291

Total liabilities and
shareholders' equity $3,576,826 $3,844,987