Mobility, PC Sales Drive Q3 Revenue Growth For Ingram
Ingram Micro notched third-quarter revenue gains, driven by growth of mobility and PC sales, the company reported Thursday night.
Sales for the third-quarter ended Sept. 27 came in at $11 billion, up 11 percent from the a year earlier. Income for the quarter was off 13 percent year-over-year to $120 million.
Ingram CFO William Humes highlighted strong growth in PCs, networking and federal sales during the company's earnings call. He also pointed to strong revenue growth from a greater volume of business mix that included a recent boost in mobility via the addition of Verizon channels.
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Mobility skyrocketed more than 200 percent in North America, Humes said. The revenue percentage for mobility across Ingram Micro is still small, but it is growing rapidly with a "huge ramp up" in revenue, he said. Since adding the solutions in April, the Santa Ana, Calif.-based distributor has reached a "full run rate" with its Verizon business around logistics, repairs, new customer wins and expanding business with current customers.
"Our success in mobility is evident. ... Our ability to step into this business in only three or four months is strongly recognized by our customers and vendor partners," CEO Alain Monie said on the call.
Ingram's cloud business grew more than 100 percent in the last quarter, Monie said. Ingram, he said, is asserting its position as a leader in the cloud markets with the addition of solutions such as IBM SoftLayer, which it announced last month, and Microsoft CSP.
The technology solutions business continues to grow in the 3 to 5 percent range, COO Paul Read said.
Hewlett-Packard accounted for 14 percent of Ingram's overall sales, and executives addressed the recent split on the call, saying that they didn't expect it would affect their operations with the vendor. CEO Monie said that given the way HP was structured in the past, Ingram had already been dealing with the company as if it were two large groups, with personal devices and enterprises.
"This really, as far as we see it now, is not going to change anything of substance, given that we were already working with the two separate groups in a very customized way," Monie said.
COO Read said that he thought it might even add more freedom and specialization to Ingram's operations with HP.
"I'm quite excited about the phase they're entering into. I'm seeing only positive things for us in the transition and the growth," Read said.
Ingram said it expects worldwide revenue to increase in the current quarter between 8 and 12 percent over the year-ago period.
CEO Monie said that, in general, the company expects areas like SMB, retail and PCs to trail off in the current quarter, although he did not know to what extent. He said he expects the mobility business to remain strong due to the Verizon addition.
PUBLISHED OCT. 23, 2014