Distributor Tech Data's Q1 Net Income Soars 49% as Deal Pricing Stays Competitive

 
 
By Jessica Davis  |  Posted 2009-05-24 Email Print this article Print
 
 
 
 
 
 
 

IT Distributor Tech Data's net income soared 49 percent in Q1 compared with last year's quarter. But the company did that on revenues that fell 17 percent year over year. CEO Bob Dutkowsky tells Channel Insider that Tech Data delivered that kind of bottom-line performance in a market where pricing on every deal remains deeply competitive by walking away from certain deals.

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.


 
 
 
 
Jessica Davis covers the channel for eWeek and Channel Insider. Her technology journalism career began well before anyone heard of the World Wide Web and has included stints at Infoworld, Electronic News/EDN, and the Philadelphia Business Journal. Her work has also appeared on CNN and Forbes.com. She has covered hardware, software and networking, as well as the business side of technology. She has won several journalism awards, including a national ASBPE award for best staff-written column, and was named Marketing Computers hardest working tech journalist on their inaugural list of top tech journalists. Jessica can be reached at jessica.davis@ziffdavisenterprise.com
 
 
 
 
 
 
 

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