The leading distributor of information technology (IT) products and supply chain solutions, Ingram Micro Inc. (IM), recently announced the acquisition of a distribution company named Albora Soluciones, based in Barcelona, Spain.
This purchase will be made through the EMEA arm of Ingram Micro and is expected to enhance its capabilities in the Virtualization, Security and Middleware Solutions segments. This should give Ingram Micro a competitive edge by scaling up its market position and expertise.
The acquisition is expected to help Ingram Micro, as the company can cash in on the strong customer and vendor relationships that Albora already enjoys. This apart, IM will instantly get 35 skilled professionals from Albora, who will enhance the technical expertise of the Ingram Micro team.
As per the latest findings of the market research firm iSuppli, industry-wide PC sales in the first quarter jumped almost 23.0% compared to the year-ago quarter. The firm is of the opinion that this has been the best performance by the PC segment ever, and the segment has made a strong recovery following the year-long recession. This apart, the server sales have also made a sharp recovery during the same period.
This revival in IT spending, PC sales and server growth will result in increasing demand for software products, thereby leading to increased utilization of the distribution channels, resulting in enhanced business opportunity for the company.
Ingram reported strong first quarter revenue of $8.09 billion, up from $6.75 billion in the prior-year quarter, led by strong contributions across all geographic regions and currency tailwinds. However, for the second quarter, though the company expects revenue to be seasonally softer than the first quarter (attributable to spring holidays), it believes that solid operating leverage and better expense control will continue to deliver solid results.
We have a Neutral recommendation on the stock.
Read the full analyst report on "IM"
Zacks Investment Research
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The acquisition is expected to help Ingram Micro, as the company can cash in on the strong customer and vendor relationships that Albora already enjoys. This apart, IM will instantly get 35 skilled professionals from Albora, who will enhance the technical expertise of the Ingram Micro team.
As per the latest findings of the market research firm iSuppli, industry-wide PC sales in the first quarter jumped almost 23.0% compared to the year-ago quarter. The firm is of the opinion that this has been the best performance by the PC segment ever, and the segment has made a strong recovery following the year-long recession. This apart, the server sales have also made a sharp recovery during the same period.
This revival in IT spending, PC sales and server growth will result in increasing demand for software products, thereby leading to increased utilization of the distribution channels, resulting in enhanced business opportunity for the company.
Ingram reported strong first quarter revenue of $8.09 billion, up from $6.75 billion in the prior-year quarter, led by strong contributions across all geographic regions and currency tailwinds. However, for the second quarter, though the company expects revenue to be seasonally softer than the first quarter (attributable to spring holidays), it believes that solid operating leverage and better expense control will continue to deliver solid results.
We have a Neutral recommendation on the stock.
Read the full analyst report on "IM"
Zacks Investment Research
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