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

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

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Jessica Davis
Jessica Davis
May 24, 2009
1 minute read
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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

Jessica Davis has been a professional writer since 2005. She has worked in various media outlets, writing for a bricklaying trade publication, several research companies and her favorite: a major entertainment company in Washington where…

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