TECD: Tech Data – Too Much Meaningless Data
Tech Data Reports Fiscal 2008 First-Quarter Results:
Net sales for the first quarter ended April 30, 2007 were $5.4 billion, an increase of 9.3 percent from $4.9 billion in the first quarter of fiscal 2007.
And that was about the only useful piece of information in the release. The press release was loaded with data but nearly devoid of information. To whit:
Earnings missed by a mile, even on a “non-GAAP” basis that excluded the closure of the company’s operations in the United Arab Emirates. But even the non-GAAP numbers may have included some impact, based on the statement that “Gross margin for the first quarter of fiscal 2008 was 4.72 percent compared to 4.80 percent in the prior-year first quarter. The decline in gross margin was attributable to higher inventory costs, including those related to the closure of the UAE operations.” It looks as though the non-GAAP numbers may merely excludes the related restructuring charge, not operating costs related to the closure.
The 9.3% sales growth is a slowdown compared with recent quarters, assuming the currency benefit is included. The company did not disclose the currency impact for the company’s overall sales growth.
Guidance for next quarter’s sales was in line with estimates, and there was guidance for both the remaining costs associated with the UAE closure and the tax rate, but not for any operational items.
I’m often puzzled as to why companies bombard investors with useless information and withhold any that might be useful. Typically when there is something good to say they will just say it, so when there isn’t investors get a bunch of mumbo jumbo.
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