Tech Distributors’ Quarterly Numbers Mostly in Growth Column
The technology distribution sector is following the lead of many vendors, with Avnet and Ingram Micro showing mostly positive numbers for their previous quarters. Avnet, which announced its Q3 2011 earnings, showed strong growth across the board, while Ingram Micro took a net income dip but still posted decent Q1 2011 figures.
Avnet’s Q3 2011 GAAP net income increased to $151 million, a 31.9 percent jump from $114.5 million for Q3 2010. Its Q3 revenues also saw a jump to $3.93 billion, up 36 percent year-over-year since Q3 2010. Avnet CEO Roy Vallee said he believes technology is leading the economic recovery. Despite beating Wall Street expectations, Avnet’s stock dipped during regular trading, but rose 2 percent to $37 after hours.
Ingram Micro, meanwhile, posted a decrease in net income to $56.3 million, down from the $70.3 million in net income for Q1 2010. The distributor attributed the drop to “difficulties transitioning a new enterprise system in Australia.” However, Ingram Micro posted an increase in Q1 sales revenue, to $8.72 billion, an 8 percent gain year-over-year from $8.10 billion. Ingram Micro CEO Gregory Spierkel sees North America as the “standout” region fueling high sales. Wall Street wasn’t happy about Ingram’s dip — its stock closed at just above $20, and then dipped more than 5 percent in after-hour trading to $19.75.