Following a 10-month long independent probe into fiscal 2011, 2012 and 2013 results Tech Data reveals the delayed numbers for the 9 months ending 31 October 2013-- with results only positive through 2012 acquisition SDG.

The March 2013 discovery of errors in the "vendor accounting" of UK subsidiary Computer 2000 forced the IT distribution giant to rip up 3 years of results. Further probing found further "improper vendor accounting, improper use of manual journal entries and improper recognition of foreign currency exchange transactions" in the accounts of two European countries and a Latin America operation.

At first glance Tech Data results for 9-month fiscal 2014 look positive, with sales growing by 5% Y-o-Y to $18.8 billion. However, remove the $1.6bn generated by SDG and sales actually fall by -5%. The difference is equally stark in the fiscal Q3 (ending October 2013) numbers, with sales falling by -7% Y-o-Y if one eliminates SDG sales.

Next year will see Ingram Micro spending $80-$100 million to "de-layer" and "align" its global infrastructure and internal organisations in the hopes of annual savings worth... $80-100 million.

The distributor already coughed up $8m on restructuring during Q4 2013. The rest will be spent during H1 2014, meaning Ingram will only see the eventual cost-saving results by 2015.

As CEO Alain Monie puts it, "the overall objective of our organisational effectiveness programs... is to streamline and focus our resources to run our businesses faster, smarter and better to capture the tremendous opportunities we have already started to invest in, while generating greater, sustainable shareholder value."

ALSO Holding acquires Saphin-owned printer and computer accessory distributor Alpha International, with aims to strengthen supplies business expertise in all countries distributor covers.

Financial details of the deal are not available. ALSO will also boost existing distribution activity in Benelux, while Alpha and ALSO Netherlands get joint management.

Ingram Micro Europe president Gerhard Schultz splits the distributor into 5 geographical areas, each centered around "empowered country operations that operate close to the business."

Reportedly this change in leadership allows for the "fostering strong ties with the customers and vendors," as sole focus on specific business portfolios for "profitable growth."

The new Ingram Micro Europe setup is as follows:

Long-serving ALSO Holding chairman Thomas C. Weissman announces his stepping down from the ALSO board, to take place on the date of the company's 2014 annual general meeting.

"After 26 years working for ALSO it is time to make room for others," Weissman says. "The company is now a strong number three in Europe and displays a sustainable profitability which is substantially better than that of the competition, so I can place the fate of the company in other hands with a good conscience."

The chairman gives no further word on his retirement other than "personal reasons."

Systemax Q2 2013 results remains in the red despite turnaround efforts-- company revenues fall by -5.1% Y-o-Y to $805.8 million and operating losses reach $6.1m, up from $2.3m in Q2 2012.

Back in November 2012 the Misco owner announced an exit from the PC making business, moved its pan-European operations to "a shared services centre in E. Europe" and dropped the CompUSA and Circuit City brands.

Systemax sees 1.3% Y-o-Y growth in sales to business customers reaching $527.6m, but consumer unit turnover drops by -15% Y-o-Y to $278.2m. Inter-company corporate trade reaches $1.4m, while technology kit sales drop by -8% Y-o-Y to $685.5m.

The only growth segment for the company is Industrial Products, with sales reaching $118.6m with 15.3% Y-o-Y growth.

European Ingram Micro revenues remain flat Y-o-Y during Q1 2013 as the distributor sees higher global sales worth $10.26 billion and lower operating income reaching $90.8 million.

GAAP net income for the quarter is $49.8m, down from $90m for Q1 2012. However Q1 2012 did see a net discreet tax benefit worth $28.5m and favourable HDD pricing.

Gross WW profit totals $585.3m, up from $467.6m for Q1 2012..

"In addition to shifting market dynamics, we also saw increased competitive pricing this quarter due to the sluggish economic environment in Europe," CEO Bill Humes says. "However, even though we expect some relief in the mid-term, we recognized many quarters ago that strategically we needed to develop and grow markets where inherently better margins are available.... we have made, and continue to make, investments in several of these areas, which, while they impact our near-term expense levels, are consistent with our strategy to increase the ratio of our higher margin, and better returns businesses."

IT distribution giant Tech Data rips up the financial results for fiscal 2011, 2012 and 2013 following the discovery of errors in the "vendor accounting" of UK subsidiary Computer 2000.

As a result Tech Data will recount the number and publish new results-- with the adjustments wiping out up to $33 million from previously reported net profits and cutting reported consolidated operating income by anything from $30m to $40m.

"Accordingly, investors should no longer rely upon the company's previously Continue reading...