International second quarter sales climb 40% with a big assist from its Technology Solutions acquisition in February.

Tech Data Corp. reported strong sales growth in the second quarter across its three international business sectors.

E-commerce continues to be a major revenue channel for the international distributor of electronics and other I.T. products and services. Tech Data, No. 57 in the B2B E-Commerce 300, doesn’t report online sales, but a company spokesman said in April that e-commerce accounts for more than 50% of total revenue. Using the 50% rate, online sales accounted for about $4.4 billion of the company’s $8.88 billion in overall sales in the second quarter.

“As workloads continue to shift from traditional products to new architectures, like solid state storage, hybrid converged platforms, software defined solutions, end-to-end security applications, along with an exponential amount of endpoint devices connected to the cloud, Tech Data’s end-to-end portfolio of products, services, and solutions are uniquely positioned to capture these opportunities,” CEO Robert Dutkowsky told analysts on the company’s quarterly earnings call yesterday.

“We will continue to evolve with the industry by focusing on and investing in next-generation technologies and delivery models, helping us and our channel partners to accelerate growth in the future,” Dutkowsky said, according to a transcript of the call from Seeking Alpha.

At the 50% of total revenue rate, e-commerce sales were about $8.28 billion for the first six months.

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Tech Data defines e-commerce as sales through its e-commerce site, Shop.TechData.com, and through electronic data interchange, or EDI. Total sales reflect Tech Data’s February acquisition of the Technology Solutions business unit from Avnet Inc. for $2.6 billion.

For the second quarter of fiscal 2018 ended July 31, 2017, Tech Data reported:

  • Total sales of $8.88 billion, up 40.0% from $6.35 billion in the same quarter last year;
  • Sales in the Americas of $4.19 billion, up 57% from $2.67 billion in the same quarter last year;
  • Sales in Europe of $4.40 billion, up 20% from $3.68 billion;
  • Asia-Pacific sales were $333 million and came solely from Technology Solutions; Tech Data did not sell in the region before the acquisition;
  • Gross profit of $515.6 million, up 63% from $316.5 million;
  • Net income of $47.5 million, up 2.4% from $46.4 million in the same quarter last year.

The increases in global sales units and gross profit came largely from Technology Solutions, the company says.

For the first six months of fiscal 2018 ended July 31, 2017, Tech Data reported:

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  • Total sales of $16.55 billion, 34% from $12.32 billion;
  • Sales in the Americas of $7.66 billion, up 51.4% from $5.06 billion in the same quarter last year;
  • Sales in Europe of $8.41 billion, up 16% from $7.25 billion;
  • Asia-Pacific sales were $476.5 million, and came solely from Technology Solutions. Tech Data did not sell in the region before the acquisition;
  • Gross profit of $972.7 million, up 58.1% from $615.1 million;
  • Net income of $78.1 million, down 2% from $79.8 million in Q2 2017.

Tech Data CIO John Tonnison will be the keynote speaker at the Fall 2017 B2B E-Commerce Executive Seminar in New York, hosted by B2BecNews. For more information and to register click here.

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