Those wondering about the state of the technology industry might take a look at Santa Ana-based bellwether Ingram Micro Inc.
The world’s biggest distributor of technology gear,everything from computers to motherboards,last week said its quarter was on track to meet previous projections.
Ingram expects to report net income of $53 million to $59 million for the fourth quarter. Sales in the period are set to be $7 billion to $7.3 billion.
“We’re pleased with the progress we have made this year,” said Kent B. Foster, chairman and chief executive of Ingram. “Even excluding the benefits of the Tech Pacific acquisition, our sales guidance represents sequential growth of 11% to 15%.”
Earlier this year Ingram closed its $530 million buy of Australia’s Tech Pacific from private equity firm CVC Asia Pacific Ltd., Dutch computer distributor Hagemeyer NV and management.
The earnings outlook could calm some nervous tech watchers.
A recent report from Morgan Stanley said personal computer sales would grow only 9% in 2005, down from an earlier forecast of 11%.
Merrill Lynch & Co. analyst Steve Milunovich expects PC shipments to grow 9% next year, but less in 2006.
Market tracker Gartner Inc. predicted that the PC landscape is ripe for more consolidation, with three of the top 10 computer makers leaving the market by 2007. IBM Corp. recently announced plans to sell most of its computer-making operations to China’s Lenova Group Ltd.
Come early next year, all eyes on Wall Street will be watching earnings reports from Ingram and other tech companies for signs of a slowdown. It should be a good show.
Ingram Tracking …
We haven’t heard much from Mike Grainger, Ingram’s former president and chief operating officer under Chief Executive Foster.
Grainger, who left Ingram in March, had overseen the company’s turnaround in the past two years. He said he was retiring, but industry insiders speculated the departure came because it wasn’t likely he would take over as Ingram chief executive.
Grainger has resurfaced, sort of. He joined Greenville, S.C.-based ScanSource Inc. as a director.
“Mike brings a wealth of experience and a proven track record of leading a global, multi-billion dollar business,” said Steve Owings, chairman of ScanSource, in a release. “The addition of his financial expertise and knowledge of the IT distribution industry will strengthen our board as we look to continue to expand our business.”
Despite the board membership,and his love of Nascar racing,Grainger still lives in San Juan Capistrano.
Doug Antone, another former Ingram executive, recently landed at Irvine-based Networks In Motion Inc., where he took over as chief executive. The company makes software that links together a disperse workforce.
“Doug is an extremely valuable addition to our team,” said Stephen Petilli, chairman of Networks In Motion, and former chief executive. “I’ve spent a lot of time with him during the selection phase of our CEO search, and have been impressed with his strong leadership character, sharp and articulate style and breadth of knowledge. I am confident he will provide immediate and gainful impact to Networks In Motion and look forward to working with him closely.”
Ready for Launch
IStore Networks Inc., an Irvine startup that makes devices for storage area networks, recently announced a string of new marketing, sales and operations executives to ready for its 2005 launch.
Key hires include Tim Beck as sales director for Europe, Middle East and Africa; David Clark as director of technical marketing and product engineering; and Jim Huang as director of operations.
“These gentlemen play pivotal roles in the growth of iStor and our product technology for next-generation storage,” said Simon Huang, iStor’s chief executive. “We recognize their outstanding capabilities and value to iStor as we prepare for a 2005 product roll out.”
Before starting iStor, founder Huang helped start Irvine-based CMD Technology Inc., a maker of data storage controllers that’s now part of Sunnyvale’s Silicon Image Inc.
Electronics on Tap
It’s that time of year again.
Big electronics makers,and several Orange County companies,will converge in Las Vegas the first week of January for the International Consumer Electronics Show, the annual gadget gala put on by the Arlington, Va.-based Consumer Electronics Association.
The trade show likely will draw many more than the 125,000 people that came last year,especially since Comdex, the technology show once held in November, was cancelled this year.
Comdex’s attendance in 2003 was dismal compared to electronics events such as CES and the Western Cable show.
As always, the show this year will feature gadgetry we’ll see on store shelves later on. Many OC companies are going, including Irvine’s Broadcom Corp., Aliso Viejo’s QLogic Corp., Irvine’s BenQ America Corp., D-Link Systems Inc., also in Fountain Valley. CES runs from Jan. 6-9.
