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Profit Up at Ingram Micro

The company meets earnings estimates.

Ingram Micro


topped the Street's revenue forecast and posted earnings that matched Wall Street estimates late Thursday.

The Santa Ana, Calif.-based distributor of technology products said its net income was $91.7 million, or 53 cents a share, for the fourth quarter, compared with $84.4 million, or 51 cents a share, in the same period one year ago.

CEO Gregory Spierkel said problems migrating to a new warehouse management system in Germany clouded the income performance during the quarter, nicking EPS by 3 cents to 4 cents a share.

The new management system is now in place and should result in a more efficient and productive operation for the country, he said.

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But the negative impact was offset by a favorable legal settlement of $4 million, or 2 cents a share, in the quarter. In addition, a reduction in tax rate benefited the company by a penny a share.

On the top line, Ingram Micro reported $8.85 billion, rising from $7.96 billion in the same three months last year.

Analysts polled by Thomson First Call pegged the company for 53 cents a share on sales of $8.55 billion.

"We closed the year with record annual sales and income," Spierkel, said in a statement. "For the fourth quarter, sales hit a quarterly record and all four regions reported operating margins of more than 150 basis points for the first time in company history. Nearly every country performed well. "

Looking ahead, Ingram sees revenue between $8.1 billion and $8.35 billion for the first quarter, vs. $8.04 billion expected by analysts.

First-quarter profit should be between $63 million and $70 million, or 36 cents to 40 cents a share, Ingram said. That's at or below the analyst forecast of 40 cents a share.

Ingram Micro shares added a penny to $20.31 in recent after-hours trading.