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Tech Data Grows In Flat Information Field

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By RICHARD MULLINS

The Tampa Tribune

Published: August 22, 2008

Despite a tough economy, Clearwater technology distributor Tech Data Corp. posted another quarter of growing sales and profits.

Net sales for the company's second quarter ended July 31 were $6.2 billion, a second-quarter record and an increase of 9.8 percent from the $5.6 billion the company booked in the same quarter a year ago.

Net income was $23.7 million, compared with $7.2 million in the same quarter a year ago.

"There are some ups and downs in the story, but the real takeaway from the quarter is that Tech Data continues to grow when the overall information technology market is at least flat," said Robert M. Dutkowsky, Tech Data's chief executive officer.

Financial results were somewhat softer in the United States, but higher in Europe, Canada and Latin America, the company said.
Profit margins for technology distributors are typically razor thin. And with a tough market in technology, Tech Data has seen some of its competition lower prices so much that Tech Data has walked away from deals worth $100 million, Dutkowsky said.

"That's a wise tradeoff for our shareholders when you look in the grand scheme," he said.

With higher shipping costs recently, Tech Data is starting to charge shipping and handling fees for more products - a rare move in the technology world, where company-to-company distributors rarely charge shipping fees.
Tech Data employs about 8,200 people worldwide, including 1,600 in the Tampa Bay area - about the same level of employment as a year ago.

Shares in Tech Data rose 33 cents, to $35.22 per share, at the end of trading Thursday.

Reporter Richard Mullins can be reached at

(813) 259-7919 or rmullins@tampatrib.com.

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