Tech Data sales, profit drop in Q1
May 28, 2020 - Tech Data Corp. reported net income of $48.1 million or $1.34 a share, on revenue of $8.2 billion for the first quarter of fiscal year 2021. Net income was down 13 percent and revenue was down 3 percent compared to the same quarter a year ago. Sales declined because of portfolio optimization actions, according to a news release from Tech Data (Nasdaq: TECD), an IT distributor headquartered in Clearwater and the largest publicly held company headquartered in the Tampa-St. Petersburg area. The onset of the global COVID-19 crisis brought challenges to businesses across geographies and sectors, including the IT ecosystem, said Rich Hume, CEO. He said the company delivered technologies needed to address evolving business needs, including enabling remote work. Funds managed by Apollo Global Management plan to acquire Tech Data in a $6 billion deal that's received shareholder and most required regulatory approvals, except for approval by Australian regulators who are still reviewing the deal. Tech Data and Apollo are targeting closing their deal before the end of June, although that timing may shift depending on when they receive Australian regulatory approval.