Sales in the second quarter were $4.1 billion, compared with $5.0 billion for the second quarter last year. Net income for the second quarter, excluding special charges, totaled $27.2 million, or $.49 per diluted share, compared with $40.8 million, or $.72 per diluted share in the second quarter last year. During the quarter the Company recorded special charges totaling $20 million, before income taxes, which included $15.2 million related to the disposition of supply chain software and $4.8 million related to the write-down of Internet-related investments. Including these special charges, net income in the quarter ended July 31, 2001 was $14.0 million, or $.25 per diluted share.
Sales for the six months ended July 31, 2001 totaled $8.8 billion compared with $9.9 billion last year. Net income for the six months ended July 31, 2001, excluding special charges, totaled $59.0 million, or $1.06 per diluted share, compared with $78.0 million, or $1.40 per diluted share, last year.
Our strong overall results in the second quarter clearly demonstrate how well we are managing through these tough economic conditions, commented Steven A. Raymund, Tech Data’s chairman and chief executive officer. We exceeded our gross margin plan and did an excellent job further reducing costs while continuing to deliver the service levels our customers demand. Tech Data employees worldwide have stepped up to the market challenges and have applied the best practices necessary to ensure that we remain the industry’s preferred distributor.
Tech Data again ended the quarter with one of the strongest balance sheets in the industry. Since the beginning of its fiscal year, the company reduced its outstanding revolving loan indebtedness by $565 million, resulting in a ratio of senior debt to total capital of 32%. Additionally, since the beginning of the year the company reduced inventory levels by $563 million achieving a record low 25.7 days of supply of inventory at the end of the second quarter, while maintaining excellent customer service.
Second-quarter sales declined 24% in the U.S. and 1% in Europe on a local currency basis. Rest-of-world sales declined 7%. Software sales grew by 24%, while systems, networking and peripherals sales declined 37%, 24% and 11%, respectively, during the second quarter. The peripherals business represented 45% of total second-quarter sales, systems 23%, software 16% and networking 16%. Electronic commerce sales grew to represent 29% of sales in the second quarter this year, up from 25% last year.
SOURCE: COMPANY PRESS RELEASE
