First-quarter profit fell at
, missing analysts' earnings estimates, as the company warned second-quarter results also would fall below the current consensus.
Following the report, the company's shares slipped 6.7% to $33.20 in after-hours trading.
The company said after the bell Thursday that net income for the quarter ended April 30 fell to $33.5 million, or 56 cents a share, from $34.7 million, or 59 cents a share, a year earlier.
Sales rose 5.3% to $5.08 billion from $4.82 billion a year earlier.
The top-line figure beat the analysts' consensus figure of $5.03 billion, but missed EPS expectations of 60 cents.
Tech Data said it experienced a year-over-year sales decline in its European, Middle East and Africa region (on a local currency basis), as well as lower operating income, which reflects the weaker macro economic environment and slowing IT demand in many countries.
"Our Americas team drove sales to the high end of our planned range for the period, but our operating performance was adversely affected by the demand environment in EMEA," said Steven A. Raymund, Tech Data's chairman and chief executive officer. "We are swiftly responding to the challenging EMEA market conditions by launching a formal restructuring program in the region to improve profitability."
The restructuring program would involve cash charges of $40 million to $50 million over the next five to six quarters. Initiatives related to the program are targeted to generate annualized savings in the same range. Upon completion of the restructuring program as well as the current IT system upgrade and harmonization project, the company is targeting combined annualized savings of about $55 million to $65 million.
However, excluding the problems in the EMEA region and its related charges, the company's expectations for the second quarter are below the current Street consensus. Tech Data said it expects earnings of 40 cents to 45 cents a share on sales of $4.7 billion to $4.85 billion.
Analysts were expecting earnings of 56 cents a share on sales of $4.87 billion.