IT product distributor Ingram Micro on Thursday announced a net loss of $US265.4 million or $1.74 per share for the first quarter, attributing the loss primarily to a $280.9 million charge against earnings in accordance with a new accounting rule.
Not including one-time gains, charges and restructuring costs, Ingram Micro earned $13.5 million or $0.09 per share, beating the $0.06 per share consensus estimate of analysts polled by Thomson Financial/First Call.
Ingram Micro, with headquarters in Santa Ana, California, reported revenue of $5.62 billion for the first quarter, to March 30, down from $7.19 billion in revenue in the same quarter last year.
The market for computer equipment remains difficult to predict, and the company doesn't expect strong demand to return in the second quarter, said Kent Foster, chairman and CEO, in a conference call following the earnings release. Ingram Micro guided investors to expect a sequential decline in sales of 4 to 7 percent, to a range of $5.25 billion to $5.4 billion. Ingram Micro expects a profit before special items of $6 million to $9 million for the second quarter.
Foster said he didn't expect to see major changes in the company's gross margins given the economic environment.
"I can only say that we have significant opportunities to lower our operating expenses," he said. "But these changes are driven by business process improvements. We're not going to stop until we're the most cost-effective distributor in the industry."
Ingram Micro's shares closed at $15.99 on the New York Stock Exchange on Thursday, unchanged from the opening price, before the results were announced.