Seeming to defy the recession, Tech Data’s (NASDAQ:TECD) net income
soared 49 percent year over year in the distributor’s first fiscal
quarter. But the company did that on revenues that declined 17 percent
year over year.
That’s because not all revenue is good revenue, Tech Data CEO Bob
Dutkowsky tells Channel Insider. Dutkowsky says that Tech Data has
walked away from nearly $1 billion worth of revenue in the last year
because the pricing just didn’t make sense.
“In this business not all revenue is good revenue,” he says. Pricing
pressure is fierce in the market. With less deals to be had, more VARs
are going after the same deals and Tech Data is often pricing the same
deal multiple times for all the different VARs that are looking to bid
on it, says Dutkowsky.
Click here to read the full story at Channel Insider.
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