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

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

Written By
Jessica Davis
Jessica Davis
May 24, 2009
1 minute read
eWeek content and product recommendations are editorially independent. We may make money when you click on links to our partners. Learn More

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…

eWeek Logo

eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site's focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

Property of TechnologyAdvice. © 2026 TechnologyAdvice. All Rights Reserved

Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.