Tech Data Corporation (TECD) has reported an 18.02 percent fall in profit for the quarter ended Jan. 31, 2017. The company has earned $78.82 million, or $2.22 a share in the quarter, compared with $96.15 million, or $2.72 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $87.01 million, or $2.45 a share compared with $80.90 million or $2.29 a share, a year ago. Revenue during the quarter went down marginally by 0.75 percent to $7,427.51 million from $7,483.62 million in the previous year period. Gross margin for the quarter expanded 26 basis points over the previous year period to 5 percent. Total expenses were 98.61 percent of quarterly revenues, up from 98.06 percent for the same period last year. That has resulted in a contraction of 55 basis points in operating margin to 1.39 percent.
Operating income for the quarter was $103.12 million, compared with $145.20 million in the previous year period.
However, the adjusted operating income for the quarter stood at $122.15 million compared to $116.81 million in the prior year period. At the same time, adjusted operating margin improved 8 basis points in the quarter to 1.64 percent from 1.56 percent in the last year period.
“Our strong Q4 results capped a 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 M. Dutkowsky, chief executive officer.
Working capital increases sharply
Tech Data Corporation has recorded an increase in the working capital over the last year. It stood at $2,701.47 million as at Jan. 31, 2017, up 42.98 percent or $812.06 million from $1,889.41 million on Jan. 31, 2016. Current ratio was at 1.57 as on Jan. 31, 2017, up from 1.48 on Jan. 31, 2016. Debt increases substantially
Tech Data Corporation has witnessed an increase in total debt over the last one year. It stood at $1,363.05 million as on Jan. 31, 2017, up 271.74 percent or $996.38 million from $366.67 million on Jan. 31, 2016. Total debt was 17.18 percent of total assets as on Jan. 31, 2017, compared with 5.77 percent on Jan. 31, 2016. Debt to equity ratio was at 0.63 as on Jan. 31, 2017, up from 0.18 as on Jan. 31, 2016. Interest coverage ratio deteriorated to 6.68 for the quarter from 22.45 for the same period last year.
Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
