Pressemitteilung BoxID: 737697 (Ingram Micro Distribution GmbH)
  • Ingram Micro Distribution GmbH
  • Heisenbergbogen 3
  • 85609 Dornach
  • Ansprechpartner
  • Amrei Stickling
  • +49 (89) 4208-1639

Ingram Micro Reports First Quarter Earnings

(PresseBox) (Santa Ana, Calif., ) .
- Revenue Increases More Than 10% and Non-GAAP EPS Up 9% on a Currency Neutral Basis
- Announces New $100 Million Global Cost Savings Plan
- Plans to Resume Share Repurchases

Ingram Micro Inc. (NYSE: IM) today announced financial results for the first quarter ended Apr. 4, 2015.

Alain Monie, Ingram Micro CEO, commented, "As illustrated by growth in excess of 10 percent on a currency neutral basis, we experienced healthy demand across our geographic regions. Asia Pacific and Latin America were clear standouts, as strong revenues were complemented by solid increases in profitability. As anticipated, our sales mix in Europe improved over the 2014 fourth quarter, with lower contribution from consumer markets leading to modest year-over-year improvement in the profitability of our European core business. In mobility, we had good growth across all regions, while cloud and supply chain solutions continued to grow at robust rates."

Monie added, "We continue to generate significant revenue momentum as we expand our capabilities globally, including in our higher margin cloud and supply chain solutions, which is an important element of leveraging our customer, vendor and global infrastructure basis to achieve our longer-term financial targets. Additionally, to ensure we maintain the trajectory towards our 2016 financial targets, we are taking cost actions globally, which are expected to result in annualized savings of approximately $100 million in 2016. One-time costs associated with these actions are expected to be in a similar range."

Monie said, "We manage a complex and broad portfolio of interconnected businesses and operations, and we remain committed to taking the decisions necessary to ensure we maintain our trajectory towards our longer-term financial objectives.

"Additionally," Monie concluded, "With now good progress on our strategic initiatives, we plan to resume share repurchases opportunistically under our existing $400 million authorization, which has approximately $124 million in remaining available capacity."

First Quarter Results of Operations

Driven by solid demand across all regions, worldwide first quarter sales increased year-over-year by $260 million to $10.6 billion, up 2.5 percent in U.S. dollars and up more than 10 percent on a currency neutral basis. Non-GAAP operating income was up 2 percent, or 9 percent on a currency neutral basis, over last year. Lower contribution from North America and Europe was more than offset by strong performance in Asia Pacific and Latin America. In addition to increased strategic investments in cloud and supply chain solutions, lower contribution from North America was driven by lower mobility gross margins related to higher Verizon channel sales than last year, as well as lower than anticipated resale pricing of returned handsets in the secondary market. The company said it is addressing the areas of the mobility business that are not currently performing as expected, and will either improve the profitability or exit those portions of the business. European profits were impacted by the strengthening U.S. dollar versus the euro, as well as by continued strategic investments in cloud, supply chain solutions and mobility. Asia Pacific and Latin America delivered solid operating leverage benefiting from good uptake in advanced solutions and share gains in certain markets.

2015 first quarter non-GAAP net income was $68 million, with non-GAAP earnings of 43 cents per diluted share, flat when compared to the 2014 first quarter, and up 9 percent on a currency neutral basis, as the translation of foreign currencies compared to the 2014 same period negatively impacted 2015 first quarter non-GAAP earnings by 4 cents per diluted share.

Key 2015 first quarter business highlights:

-Ingram Micro completed the acquisition of technology services provider Anovo, further expanding its position as the leading global provider of device lifecycle services, while also strengthening the company's relationship with many of the world's largest mobile network operators and hardware manufacturers. Anovo is a European based provider of repairs and regeneration solutions for high-tech products such as smartphones and set-top boxes across 10 countries in Europe and Latin America. The acquisition is expected to contribute in excess of $300 million in annual services revenue and be modestly accretive to Ingram Micro's 2015 full year non-GAAP diluted earnings per share.
-The company further expanded into the fast-growing and higher profitability Latin American market with the acquisition of Tech Data's Peruvian and Chilean businesses. The acquisition is expected to add more than $270 million annually to Ingram Micro's revenue and be slightly accretive to 2015 non-GAAP earnings per diluted share.
-Ingram Micro expanded its relationship with HP in North America, adding HP Enterprise Group's entire portfolio of converged infrastructure, converged systems, networking and servers to its government business offerings.
-The company held highly successful annual Cloud Summit conferences in North America and Europe with a total of approximately 1,500 channel partners attending, along with support from vendors such as Microsoft, IBM, McAfee, Cirius, Acronis and TrendMicro.
-The company announced the availability of Microsoft Office 365 through the fully automated Ingram Micro Cloud Marketplace, becoming the first master cloud service provider to offer a true, online consumption model for Office 365 that is backed by a suite of migration services and a dedicated service desk. Ingram Micro is expanding its relationship with Microsoft Cloud Solutions Provider (CSP) into Europe, with initial countries participating in Microsoft's CSP program including Austria, Belgium, France, Germany, Italy, the Netherlands, Portugal, Spain, Sweden, Switzerland, and the U.K.
-eBay is partnering with Ingram Micro Supply Chain Solutions to help power consignment selling on its marketplace through the eBay Valet consignment program.
-Ingram Micro was awarded exclusive rights to market, sell and support the entire portfolio of Arcserve data protection and recovery solutions, including the new Arcserve Unified Data Protection and Arcserve UDP 7000 Appliance, to channel partners throughout the U.S. and Canada.


The following statements are based on the company's current expectations for the 2015 second quarter and exclude the amortization of intangible assets, charges associated with acquisition-related costs, reorganization, integration and transition costs and charges associated with expense reduction programs and the impact of foreign exchange gains or losses related to the translation effect on Euro-based inventory purchases in Ingram Micro's pan-European entity. These statements are forward-looking and actual results may differ materially.

For the 2015 second quarter, Ingram Micro currently expects consolidated sales to grow high-single digits in local currency and to be relatively flat in U.S. dollars when compared to the 2014 second quarter. Non-GAAP earnings per diluted share for the 2015 second quarter are expected to be in the range of 50 to 58 cents, which includes a negative impact of 4 cents related to currency movement, when compared with the second quarter last year.

Non-GAAP Disclosures

In addition to GAAP results, Ingram Micro is reporting non-GAAP operating income, non-GAAP operating margin, non-GAAP net income and non-GAAP earnings per diluted share. These non-GAAP measures exclude charges associated with reorganization, integration and transition costs, including those associated with the company's previously announced organizational effectiveness program and integration of BrightPoint, as well as acquisition-related costs and the amortization of intangible assets. These non-GAAP financial measures also exclude a benefit related to the receipt of an LCD flat panel class action settlement in 2014. Non-GAAP net income and non-GAAP earnings per diluted share also exclude the impact of foreign exchange gains or losses related to the translation effect on Euro-based inventory purchases in Ingram Micro's pan-European entity.

The non-GAAP measures noted above are primary indicators that Ingram Micro's management uses internally to conduct and measure its business and evaluate the performance of its consolidated operations and operating segments. Ingram Micro's management believes these non-GAAP financial measures are useful because they provide meaningful comparisons to prior periods and an alternate view of the impact of acquired businesses. These non-GAAP financial measures are used in addition to and in conjunction with results presented in accordance with GAAP. These non-GAAP financial measures reflect an additional way of viewing aspects of our operations that, when viewed with our GAAP results and the accompanying reconciliations to corresponding GAAP financial measures, provide a more complete understanding of factors and trends affecting Ingram Micro's business. A material limitation associated with these non-GAAP measures as compared to the GAAP measures is that they may not be comparable to other companies with similar items that present related measures differently. The non-GAAP measures should be considered as a supplement to, and not as a substitute for or superior to, the corresponding measures calculated in accordance with GAAP and may not be comparable to similarly titled measures used by other companies.

Reconciliation of GAAP to non-GAAP financial measures for the periods presented are attached to the press release.

Conference Call and Webcast

Additional information about Ingram Micro's financial results will be presented in a conference call with presentation slides today at 5 p.m. ET. To listen to the conference call webcast and view the accompanying presentation slides, visit the company's website at (Investor Relations section). The conference call is also accessible by telephone at (877) 869-3847 (toll-free within the United States and Canada) or (201) 689-8261 (other countries).

The replay of the conference call with presentation slides will be available for one week at (Investor Relations section) or by calling (877) 660-6853 or (201) 612-7415, conference ID "13604955."

Website Promotion

Ingram Micro Distribution GmbH

Ingram Micro helps businesses realize the promise of technology. It delivers a full spectrum of global technology and supply chain services to businesses around the world. Deep expertise in technology solutions, mobility, cloud, and supply chain solutions enables its business partners to operate efficiently and successfully in the markets they serve. More at