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But the company had some good news to share with Wall Street Thursday. Financial results for its first quarter in 2009 beat analyst expectations by a comfortable margin, and profits rose.
Tech Data typically plays a behind-the-scenes role, acting as a global warehouse, distributing technology equipment to other companies like retail stores and computer consultants that build systems on behalf of clients.
First the bad news: Revenue fell 17.7 percent to $4.99 billion in the company's first quarter. In North and South America, where Tech Data made 44 percent of its total sales, revenue fell 18 percent to $2.21 billion. That's a result of the poor economy, the company said. Europe showed similar trends.
Then the good news: Net income rose to $31.8 million, or 63 cents per share, compared with $21.4 million a year ago. Wall Street had expected 37 cents per share in profits, according to a survey by Bloomberg News.
And both sales and profits beat expectations.
"Even in a really tough economic environment -- with slower IT spending -- there were little pockets of strength everywhere," said Chief Executive Officer Bob Dutkowsky. State and local government spending did well, he said, as did health care. Financial services firms, homebuilding and the auto industry were awful.
Amid the quarter, Tech Data was able to sign up some new vendors, including Dell Inc. and Sharp for HDTVs, plus acquire several smaller, yet similar technology distributors in Europe -- part of an ongoing company strategy to diversify, he said.
Employment remained steady at about 8,000 people worldwide, including about 1,500 in the Tampa Bay area.
Amid a broadly dismal day on Wall Street, stock in Tech Data rose 11 percent to $32.75 in afternoon trading.
Reporter Richard Mullins can be reached at (813) 259-7919.
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