Before we get started, I have a Safe Harbor announcement. During today's discussion, we will make statements that are forward-looking. These forward-looking statements and all other statements made on this call that are not historical facts are subject to a number of risks and uncertainties. Please refer to today's news release and documents filed with the Securities and Exchange Commission, specifically the risk factors listed in Item 1A of our Form 10-K for the fiscal year ended January 1, 2011, for more information on the risks that could cause actual results to differ materially.In addition, this conference call is the property of Ingram Micro and may not be recorded or rebroadcast without specific written permission from the company. The presentation slides and a replay of the call will be available for one week on the company's website at ingrammicro.com or by calling (800) 678-3180. I'll now turn the call over to Greg Spierkel, our Chief Executive Officer. Greg? Gregory M. E. Spierkel Thank you, Ria, and good afternoon, everyone. Demand in our key customer segment, the SMB market, remained solid in most parts of the world during the third quarter. We experienced positive revenue growth, north of 5%, despite continued global macroeconomic pressures and reduced industry spending forecast. Our eighth consecutive quarter of year-over-year growth was driven by solid contributions from the Americas, as well as key countries in other regions such as China, India, Germany and France. At the same time, we are facing challenges that impacted our profitability during the quarter. While these challenges are frustrating, we remain focused on our long-term objectives, making the right strategic decisions today that we believe will secure Ingram Micro's position as a significantly stronger, healthier and more profitable company in the future. Arguably, our most strategic operational initiative is the change we are making with our global enterprise systems. We are approximately midway through a 6-year program and we are making meaningful progress. But that progress has not been consistent, impacting our worldwide performance. I will discuss in more detail later in my remarks where we are in that process.
Turning to some highlights from the quarter. North America continues to perform well with company leading operating margins of 170 basis points on revenue growth of 3%, hitting a decade high for third quarter revenue. The region's results would have been even better had our fee-for-service logistics business in the U.S. delivered at last year's level. Our DBL consumer accessories unit and Data Capture/Point-Of-Sale businesses were a particular stand out with the U.S. classic business also driving growth above the region's average.Avid, our home theater business, continues to make good progress, delivering year-on-year growth for the third consecutive quarter and an encouraging sign given weak housing markets. We continue to gain traction in our cloud marketplace, adding security and remote management services from enabled technologies, Symantec and Trend Micro, as well as new tools to our Canadian cloud solution. Elsewhere in Canada, the Logistics business experienced solid growth and the classic distribution business continued to make modest market share gains and a seasonally slower quarter. Rounding out the Americas, Latin America continued a strong performance with double-digit revenue growth. The region produced improved operating leverage with a year-over-year operating margin growth of 53 basis points. The overall demand environment remains solid despite broader negative news with Mexico and our Miami export business setting the pace. We are also beginning to see some encouraging signs in Brazil as we added more customers in Q3, building on our customer base by 15% over June levels. We are gaining traction in our Brazilian volume business, which experienced a return to growth from all 3 divisions in the quarter: hardware, software and service and storage. Our value business has a new management team in continued place, actively engaging with vendors and customers to reestablish our position in the market. Looking at Europe, there were several bright spots even as the region is challenged by the economic uncertainty surrounding sovereign debt issues. France and Germany, 2 of our cornerstone countries, delivered solid year-over-year growth in local currency and improved growth and operating margins. Our Data Capture/Point-Of-Sale business also continues to perform well, contributing double-digit revenue growth with strong margins. Read the rest of this transcript for free on seekingalpha.com