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CLEARWATER, FLA. — Tech Data — a global wholesaler of personal computers, logistics management and other value-added services — recorded a 15 percent drop in net income for the fiscal first quarter, hitting $31.8 million, compared with $37.2 million in the year-ago three months.
Sales in the first quarter slid 5 percent to $4.7 billion, compared with $4.9 billion in the same quarter last year.
The company attributes its earnings decline mainly to a slowdown in information-technology spending.
"We are pleased with our results under the current economic conditions," said Steven A. Raymund, chairman/CEO. "Our organization has responded well to the challenges by taking appropriate cost-cutting measures and accelerating business development activities."
Tech Data said first-quarter sales declined 7 percent in the United States.
Overall company software sales climbed 18 percent in the three months ended April 30, while the systems business declined 18 percent, and peripherals, 4 percent.
Networking sales were unchanged during the quarter, accounting for about 16 percent of total sales. The peripherals business represented 45 percent of total sales during the three months, systems 25 percent and software 14 percent.
The company said it expects to report sales ranging from $4.1 billion to $4.3 billion during the fiscal second quarter ending July 31. Net income should come in between $21 million and $25 million, the company said.