SEC Investigating Ingram; Firm’s Profit Falls 4.9%

Ingram Micro Inc. on Thursday said third-quarter net income fell 4.9% and disclosed that the Securities and Exchange Commission had begun an informal inquiry.

Net income declined to $77.3 million, or 49 cents a share, from $81.2 million, or 53 cents, a year earlier, the Santa Ana company said. Excluding tax and other benefits in both periods, profit more than doubled. Sales rose 16% to $6.02 billion from $5.21 billion.

Ingram Micro, the world’s biggest distributor of computers and related parts, said the SEC did not give a reason for the inquiry. The company believes it is related to transactions with Network Associates Inc. from 1998 to 2000.

“We do not expect it [the inquiry] to have a material impact. We are cooperating fully,” Chief Executive Kent Foster said.

Ingram shares rose 15 cents to $17.10 on the New York Stock Exchange. They were unchanged in extended trading. They’ve gained 7.5% this year.

In the current quarter ending Jan. 1, Ingram Micro said it expected net income of $51 million to $57 million, or 31 cents to 35 cents a share. Sales are expected to be $6.65 billion to $6.90 billion.

Analysts were expecting profit of 31 cents a share, the average of nine estimates, and sales of $6.73 billion, the average of six estimates, according to Thomson First Call.

In the year-earlier period, the company reported net income of $46.4 million, or 30 cents a share, and sales of $6.76 billion. Excluding some costs, the company had profit of $52.3 million, or 34 cents.

North American and European sales, which accounted for 86% of the total, each rose 19% from a year earlier.