IT spending continues to improve according to Tech Data butit is not yet confident that the recession is over.
The broadline giant has filed third quarter sales for theperiod ended 31 October of $5.6bn, down 8.1% on last year but up 8.8%sequentially. Profits went up to $43.1m compared to $16.8m in 2008.
“While inconsistent across the entire IT industry, it isclear that overall IT spending is beginning to show signs of an improvingoutlook for the first time in four quarters,” said Tech Data CEO Bob Dutkovsky.
Sales at the European operation fell 5.7% on last year inconstant currency to $3.2bn, but grew 14.2% sequentially, and in the Americasturnover dropped nearly 11% on 2008 but went up 2.6% on Q2.
Total debt was $459m compared to $390m a year earlier andnet cash was $785.4m, indicating that the company has financial headroom tomake acquisitions.
The operational highlights included the Advanced InfrastructureSolutions biz in the USand in Europe the Azlan mid-market outfit andthe Brightstar joint venture were the best performers.
However Dutkovsky warned financial analysts in a conferencecall that while reseller customers were in more buoyant mood that in recentquarters, the market was heading toward a market size similar to 2008.
“Things are improving but I hope you are not interpretingthat we are declaring victory and the recession is over and IT spending hasreturned to the good old days, it is still going to be a lot less than it wasbefore,” he said.
This conservative attitude fed through into forecasts forthe fiscal final quarter of 2008, in which Tech Data expects to grow sales inthe low to mid single digits.