Tech Data Corporation announced its financial results for the second quarter ended July 31, 2015. Net sales were $6.6 billion, a decrease of approximately 4 percent from $6.8 billion in the prior-year quarter.
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Excluding the impact of weaker foreign currencies against the U.S. dollar compared to the prior-year quarter, consolidated net sales increased 8 percent.
Gross profit was $325.3 million, or 4.94 percent of net sales, compared to $351.4 million, or 5.14 percent of net sales in the prior-year quarter. The year-over-year decline in gross profit dollars is due primarily to weaker foreign currencies against the U.S. dollar, offset in part by additional sales volumes.
The year-over-year decline in gross margin percentage is due primarily to product mix.
Non-GAAP SG&A was $244.1 million, or 3.71 percent of net sales, compared to $277.1 million, or 4.05 percent of net sales in the prior-year quarter. The decrease in SG&A is due primarily to the impact of weaker foreign currencies against the U.S. dollar.
The decrease in SG&A as a percentage of net sales is primarily attributable to improved operating leverage from increased sales and good expense management.
Non-GAAP operating income was $81.2 million, or 1.23 percent of net sales, compared to $74.3 million, or 1.09 percent of net sales in the prior-year quarter.
The weakening of foreign currencies against the U.S. dollar compared to the prior-year quarter negatively impacted non-GAAP operating income by approximately $10 million.
Non-GAAP net income was $52.5 million, or $1.43 per diluted share, compared to $42.9 million or $1.12 per diluted share in the prior-year quarter. The weakening of certain foreign currencies against the U.S. dollar compared to the prior-year quarter negatively impacted non-GAAP net income by approximately $7 million, or $0.19 per diluted share.
Net cash provided by operations during the second quarter was $200 million. Return on invested capital on a non-GAAP basis for the trailing twelve months was 12 percent. ■