Tech Data revenues up $1B

Quarterly net sales rose just 5.6%, but that bump can represent hundreds of millions of dollars when your company is as large as Tech Data Corp.

Indeed, the $5.47 billion in net sales Tech Data earned in the recently concluded quarter represented a gain of $290.3 million in revenues. That led to a 2.7% increase in profits — up to $40.9 million for the three-month period.

Tech Data also reported results for the first six months of 2010 in its latest release. So far, the company has earned $11.1 billion in net sales, up nearly $1 billion from the same period last year, during which the company brought in $10.2 billion in sales.

Six-month profits were $86.5 million this year, compared to $66.9 million last year.

Robert Dutkowsky, Tech Data CEO, explained a shift in strategy in the release accompanying his firm's earnings results.

“Despite various macroeconomic uncertainties at the start of the quarter, the IT market grew at a good pace in both of our regions,” Dutkowsky said, “allowing us to continue our focus on net revenue growth — growing with select customers and vendors, while shifting away from less profitable, or more capital-consuming business.”

Tech Data Corp. is based in Clearwater. The company generated $22.1 billion in net sales in fiscal year 2009.