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Tech Data To Buy Back Stock

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By RICHARD MULLINS, The Tampa Tribune

Published: September 7, 2007

Clearwater computer distributor Tech Data Corp. is feeling healthy enough financially that it announced plans Thursday to buy back $100 million of the company's stock.

The company didn't set a specific timeframe for the purchases, though Chief Executive Officer Robert Dutkowsky said the move is 'an ongoing testament to our confidence in Tech Data's financial strength, strategic direction and long-term growth opportunities.'

Tech Data's own finances have improved over the last year, helping the company post larger revenue and profits in the cutthroat market of buying and distributing computer equipment. This buyback program follows a $200 million share repurchase program that started in April 2005. The announcement roughly marks the one-year anniversary of Dutkowsky's tenure as CEO of Tech Data, where he was brought on to reinvigorate sales at the company after sluggish revenue.

The company plans to hold the stock for general corporate purposes such as employee pay packages.

Last month, Tech Data said quarterly sales rose 14 percent to $5.61 billion, compared with the same period a year ago, topping the $5.29 billion forecast of analysts. Profits topped $7.24 million, compared with a year-ago loss of $155.5 million when the company was amid a restructuring.
Tech Data employs about 8,100 people worldwide, including about 1,700 in the Tampa Bay area. Stock in the company was relatively flat, closing up 5 cents per share to $39.02 on the Nasdaq stock exchange.

Reporter Richard Mullins can be reached at (813) 259-7919 or rmullins@tampatrib.com.

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