Tech Data Net Income Grows 11% - TheStreet

Tech Data

(TECD) - Get Report

posted an 11% increase in first-quarter net income, beating estimates on cost-cutting measures.

The IT solutions provider said it earned $35.1 million, or 60 cents a share, up from $31.8 million, or 57 cents a share, in the year-ago quarter. The latest quarter's results include a charge of about $3.3 million for the company to close its Norway operations.

According to Thomson Financial/First Call, analysts were expecting to see 57 cents a share in the quarter.

Revenue was down 16% to $3.9 billion from $4.7 billion a year ago, but were still ahead of estimates of $3.8 billion. The company said sales were down 22% in the U.S., 8% in Europe, and 15% in the rest of the world.

Tech Data also offered guidance for the second quarter, saying it planned to sell or close its operations in Hungary by the end of the quarter. The company expects income of 53 cents to 58 cents a share on sales of $3.75 billion to $3.9 billion. Analysts polled by First Call are looking for 60 cents on sales of $3.9 billion.

Shares of Tech Data closed at $43.03 Tuesday before the news.