Tech Data A/NZ posts net loss after Avnet TS acquisition
- 01 November, 2017 11:30
Tech Data’s operation in Australia and New Zealand has reported a comprehensive after-tax loss of $214,868 for the financial year ending 1 July.
The results, which were lodged with Australia’s corporate regulator at the end of October, stand in stark contrast to the $7.6 million post-tax profit the company reported the year prior, back when it was still known as Avnet Technology Solutions A/NZ.
As reported by ARN, the US-headquartered distributor, Tech Data, first entered into a definitive agreement to acquire the Technology Solutions business from Avnet in September 2016, in a transaction valued at approximately US$2.6 billion.
Tech Data completed its acquisition of the Technology Solutions business from Avnet in late February, with the multibillion-dollar deal effectively rubber stamping the distributor’s move into Australia and New Zealand.
Avnet Technology Solutions (Australia) Limited’s legal name was changed to Tech Data Advanced Solutions (ANZ) Limited on 18 August 2017.
In September, Tech Data unveiled its new identity to the global channel, with the distribution giant operating as one unified brand following the acquisition of Avnet’s Technology Solutions business.
Now, according to the latest full year financial report, a review of the operations of the company during the financial year and the results of its operations found that the changes in market demand and competition have seen a decrease in sales revenue of 14.5 per cent, to $410,453,726. The previous year’s result was $480,330,704.
At the same time, the company saw fewer costs associated with employee benefits expenses during the period, but reported higher costs elsewhere, such as changes in inventories of finished goods.
The results come just over three months after Tech Data’s former Technology Solutions business vice president and general manager for Australia and New Zealand (A/NZ), Darren Adams, revealed he would leave his role with the company.
It was subsequently announced in mid-October that former Dicker Data (ASX:DDR) board member, Wendy O’Keeffe, had been appointed as the company's new A/NZ country general manager.
Prior to O’Keeffe’s appointment, the distributor’s local operations had been led on a temporary basis by Tech Data’s Asia Pacific vice president of marketing, education and supplier management, Michael Costigan.
Costigan stepped in as interim general manager of the A/NZ business while the company conducted a search for someone to replace Adams in the top job.
Now, the company appears to be on a hiring spree, with Tech Data’s recently appointed director of sales and operations across A/NZ, Pia Broadley, posting on LinkedIn that the company is recruiting for a number of roles across its sales team, including vendor BDMs, vendor sales reps and cloud sales roles.
“At Tech Data we have transformed not only our brand but our whole business to better help our partners generate growth in this exciting and ever-changing tech landscape,” Broadley wrote.