Technology distributor, Ingram Micro Inc.’s worldwide sales rose 19 per cent to $US10.26 billion, in the first quarter ended March 30, in part helped by the acquisitions of Brightpoint Inc. and Aptec Holdings. However, the company’s net income fell to $49.8 million in the same period.
Its Asia Pacific sales hit an all-time first quarter high, led by double-digit growth in India and Australia.
Ingram Australia operations continue to be on a recovery path. Australia reduced its operating loss by more than $US5 million sequentially from the 2012 fourth quarter, the company said.
In a regulatory filing, Ingram said the company’s 2012 fourth quarter acquisitions of Brightpoint and Aptec Holdings added $1.1 billion and $75 million, respectively to 2013 first quarter revenue, contributing 13 percentage points to the growth.
Its net income in the first quarter was $US49.8 million, down from $US90 million from the same quarter last year. The 2012 net income had been helped by “a net discrete tax benefit in the quarter as well as from favourable pricing on hard disk drives,” the company said.
The company expects continued recovery in Australia and growth in emerging markets, contributing to overall increase of 1 to 4 per cent in world wide revenue in the second quarter.
“I am pleased with the progress we are making on driving cost synergies and business integration in our recent acquisitions,” Ingram president and CEO Alain Monié, said in a statement. “More importantly, the addition of these companies has expanded our capabilities in highly strategic markets and new geographies and is expected to provide a strong foundation for future profitable growth. I am also encouraged by our progress in Australia and our ability to drive solid overall revenue growth; however, I am not satisfied with our bottom line results.”
He added that high growth in tablets and other mobile devices continues to affect gross margins. However, this high growth product opportunity also brings the addition of a new set of vendors and customers to the Ingram Micro ecosystem, which enables it to tap into the associated supply chain services to large OEMs and service providers.