Ingram Micro Sees WFH Growth From COVID-19, Lower Advanced Solutions Sales

Privately-held Ingram Micro, which is owned by China‘s HNA Group but reportedly being courted by private equity, said its second fiscal quarter 2020 revenue decline but income was up as the pandemic caused a huge shift in spending patterns.

Distributor Ingram Micro on Monday reported second fiscal quarter 2020 sales that were weaker than those a year ago as the negative impact from the COVID-19 coronavirus pandemic outweighed improved revenue from its Technology Solutions business and its e-commerce solutions demand.

Ingram Micro releases its financial snapshot on a quarterly basis despite its status as a private company. The Irvine, Calif.-based distributor went private when it was acquired in late 2016 by China-based HNA Group.

Ingram Micro released its second fiscal quarter 2020 financials at a time of uncertainty for the company. The firm has been reportedly seen as an acquisition target by private equity for nearly two years, with the latest rumors from last month saying Ingram Micro is the target of a $7-billion bid by Platinum Equity.

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Ingram Micro did not respond to a CRN request for further information.

For its second fiscal quarter 2020, which ended June 27, Ingram Micro reported revenue of $10.5 billion, down nearly 9 percent from the $11.5 billion the company reported for its second fiscal quarter 2019.

However, net income on a GAAP basis of $142.1 million rose 47 percent year-over-year compared to last year‘s $96.6 million.

On a non-GAAP basis, Ingram Micro reported net income of $149.6 million, up 26 percent over the $119.1 million the company reported a year earlier.

For the quarter, Ingram Micro said the increase in profitability came from the robust performance of its Technology Solutions and its commerce and lifecycle services businesses, which led to a better mix of higher margin sales, especially those related to work from home needs.

However, the distributor said, total revenue during the quarter slid from that of the same period of last year as the COVID-19 coronavirus pandemic hit demand for certain services and for its Advanced Solutions business offerings.

Ingram Micro also warned that the worldwide shutdown of businesses in response to the pandemic could negatively impact its financial performance for the rest of the year.