Revenue during the quarter went down marginally by 2.75 percent to $10,226.83 million from $10,515.88 million in the previous year period. Gross margin for the quarter expanded 68 basis points over the previous year period to 7 percent. Total expenses were 98.66 percent of quarterly revenues, down from 98.86 percent for the same period last year. This has led to an improvement of 20 basis points in operating margin to 1.34 percent.

Operating income for the quarter was $137.06 million, compared with $119.43 million in the previous year period.

However, the adjusted operating income for the quarter stood at $176.60 million compared to $168.60 million in the prior year period. At the same time, adjusted operating margin improved 12 basis points in the quarter to 1.73 percent from 1.60 percent in the last year period.

“During the third quarter of this year we continued to deliver robust improvement in gross and operating margins leading to the strongest earnings per share for a third quarter in more than a decade,” said Alain Monié, Ingram Micro Chief executive officer. “We see further stabilization in market demand across most of the globe and our teams continue to leverage our investments in productivity and services to deliver improved bottom line results and growth in a number of areas as we benefit from the broadest solutions portfolio and widest geographic reach in the industry.”

The company has spent $219.76 million cash to meet investing activities during the nine month period as against cash outgo of $193.73 million in the last year period. It has incurred net capital expenditure of $78.99 million on net basis during the nine month period, down 19.29 percent or $18.89 million from year ago period.

Cash flow from financing activities was $96.80 million for the nine month period as against cash outgo of $509.70 million in the last year period.

Cash and cash equivalents stood at $689.08 million as on Oct. 01, 2016, down 27.11 percent or $256.24 million from $945.32 million on Oct. 03, 2015.

Working capital declines
Ingram Micro Inc has witnessed a decline in the working capital over the last year. It stood at $3,156.81 million as at Oct. 01, 2016, down 17.87 percent or $686.72 million from $3,843.54 million on Oct. 03, 2015. Current ratio was at 1.44 as on Oct. 01, 2016, down from 1.61 on Oct. 03, 2015.

Cash conversion cycle (CCC) has decreased to 9 days for the quarter from 26 days for the last year period. Days sales outstanding went up to 45 days for the quarter compared with 43 days for the same period last year.

Days inventory outstanding has decreased to 18 days for the quarter compared with 34 days for the previous year period. At the same time, days payable outstanding went up to 55 days for the quarter from 51 for the same period last year.