Tech Data Corporation (TECD) has reported 8.15 percent fall in profit for the quarter ended Apr. 30, 2017. The company has earned $30.65 million, or $0.82 a share in the quarter, compared with $33.37 million, or $0.94 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $70.06 million, or $1.87 a share compared with $37.04 million or $1.05 a share, a year ago. 

Revenue during the quarter grew 28.52 percent to $7,664.06 million from $5,963.36 million in the previous year period. Gross margin for the quarter expanded 96 basis points over the previous year period to 5.96 percent. Total expenses were 99.02 percent of quarterly revenues, down from 99.12 percent for the same period last year. This has led to an improvement of 10 basis points in operating margin to 0.98 percent.

Operating income for the quarter was $75.08 million, compared with $52.56 million in the previous year period.

However, the adjusted operating income for the quarter stood at $123.20 million compared to $57.56 million in the prior year period. At the same time, adjusted operating margin improved 64 basis points in the quarter to 1.61 percent from 0.97 percent in the last year period.

"We are pleased to report an excellent start to fiscal year 2018. During Q1, we leveraged the breadth of our vendor and customer portfolios and the flexibility of our business model to deliver solid top-line growth and excellent profitability," said Robert M. Dutkowsky, chief executive officer. "Our regional teams executed well throughout the quarter, capitalized on market opportunities and surpassed their profitability goals. This enabled Tech Data to exceed our expectations on our key financial metrics, including sales, non-GAAP operating and net income, and non-GAAP earnings per share. In addition, we generated strong operating cash flow and paid down a portion of long-term debt, an important first step in our commitment to deleverage the company. Tech Data delivered these strong results, while at the same time making excellent progress on integrating Technology Solutions - the largest and most transformative acquisition in our company's history. And our first quarter performance" the first as a combined company - is a testament to the outstanding execution capabilities of our operations, the skills and talent of our people, and the strength and diversity of our end-to-end portfolio of IT solutions."

For the second-quarter, Tech Data Corporation expects revenue to be in the range of $8,550 million to $8,800 million. On an adjusted basis, the company projects diluted earnings per share to be in the range of $1.95 to $2.08.

Cash conversion cycle (CCC) has decreased to 8 days for the quarter from 23 days for the last year period. Days sales outstanding went up to 44 days for the quarter compared with 42 days for the same period last year.

Days inventory outstanding has decreased to 16 days for the quarter compared with 33 days for the previous year period. At the same time, days payable outstanding was almost stable at 52 days for the quarter, when compared with the previous year period.