Ingram Micro Maximizes Earnings

Ingram Micro Inc., the Santa Ana-based computer distributor powerhouse, reported hefty gains in earnings and sales for the fiscal second quarter.

The company’s net income for the quarter ended July 4 climbed 39% to $55.6 million, or 37 cents a share, from $40 million, or 27 cents a share, a year ago. The company recorded charges of $900,000 in the recent second quarter and $1.4 million a year earlier related to stock option conversions.

Ingram’s revenue totaled $5 billion, up 34% from $3.72 billion for the same period a year earlier.

The company has been doing well financially for the past couple of years, a reflection of its smart new e-commerce business plan, an expansion into manufacturing and an effort to become a virtual warehouse for Internet-based resellers. Ingram’s 40% annual growth rate in sales has far outpaced the rest of the technology industry, thanks to an aggressive hiring spree and the acquisition of nine distributor companies.

For the first six months this year, Ingram’s net income rose nearly 40% to $112.2 million, or 75 cents a share, compared with $80.3 million, or 55 cents a share, for the first six months of 1997. Sales climbed 36% to $10.1 billion from $7.4 billion for the same period in 1997.