The United Kingdom’s exit from the European Union, or Brexit, contributed to a 3.5% drop in total sales for Tech Data Corp. during its second fiscal quarter ended July 31.

But the company, a distributor of electronics and other I.T. products to more than 100,000 customers, including resellers and retailers, plans to expand its portfolio of cloud-based e-commerce and Internet of Things technology and services offered to customers as a way to grow revenue and profits during uncertain economic and political times, CEO Bob Dutkowsky told stock analysts in a Q2 conference call, according to a transcript from Seeking Alpha.

“Longer term, it’s too early to tell what impact Brexit will have on I.T. spending in the [European] region,” he said, adding: “While we remain cautious on the I.T. spending outlook in the regions we serve, having an end-to-end product portfolio enables us to align our coverage model and scales to demand, thereby delivering solid results even in challenging market conditions.”

The company says it plans to increase its e-commerce presence with its recently announced StreamOne platform, which allows business customers to customize their own online store using Tech Data’s internet-based technology, or to integrate Tech Data’s cloud services into their existing e-commerce business.

“Our ability to provide the right mix of cloud solutions coupled with our expertise in new and emerging data center technology, and the strategic investments we’ve made in mobile, security, cloud and Internet of Things markets uniquely position Tech Data to assist our resellers as they transition to an increasingly hybrid I.T. model,” Dutkowsky said. “Looking ahead [we] will focus on opportunities that expand our presence in these emerging technologies.”

During the second quarter, Tech Data generated sales of $6.35 billion, down 3.5% from $6.58 billion a year prior. 70% of orders were received electronically in Q2, including though its e-commerce site, TechData.com, and electronic data interchange, or EDI. The company didn’t break out the volume of Q2 sales attributed to electronic orders, but for the fiscal year ended Jan. 31, 2016, it said electronic sales were 48% of total sales. Using that same percentage for Q2 would put sales processed through its e-commerce site and EDI at $3.05 billion for the second quarter. Tech Data has also said that sales through its e-commerce site account for 20% of total electronic sales, which would put Q2 sales through TechData.com at about $609.6 million.  

Tech Data reported for the second quarter ended July 31:

• Net sales of $2.67 billion in the Americas, down 2.9% from $2.75 billion;
• Net sales of $3.68 billion in Europe, down 3.9% from $3.83 billion;
• Gross profit of $316.45 million, down 2.7% from $325.28 million the year prior.

For the six months ended July 31, Tech Data reported:

• Total net sales of $12.32 billion, down 1.2% from $12.47 billion;
• Net sales of $5.06 billion in the Americas, down 0.4% from $5.08 billion;
• Net sales of $7.25 billion in Europe, down 1.8% from $7.38 billion;
• Gross profit of about $615.06 million, down 0.3% from about $617.17 million.

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