Mr. Hamada further added, “TS continued its improvement in financial performance as seasonal revenue growth combined with the portfolio and expense management actions taken during the year resulted in year over year increases in both margins and returns. In the June quarter, organic revenue in constant currency grew 5.4% sequentially, representing our third consecutive quarter of seasonal growth. Operating income grew 3.5 times faster than revenue sequentially and operating income margin increased 29 basis points, with our Americas and EMEA regions driving the improvement. In Asia, where we have consciously increased our focus on profitability and returns, operating income margin increased 58 basis points year over year with the ASEAN region driving much of that improvement. In addition to this progress, TS continues to develop strategic growth initiatives that enhance the breadth and depth of our portfolio. In our Americas region, our investments in professional services contributed to incremental growth and higher gross profit margins. The addition of Magirus in our EMEA region has strengthened our competitive position in key technologies including virtualization, storage and converged solutions. Despite a challenging start to fiscal 2013, our TS team has responded by delivering steady improvement through the year while continuing to invest in organic growth initiatives and value creating M&A.”

Cash Flow

• Cash flow from operations was $267 million for the quarter
• Cash flow from operations for the full fiscal year was $696 million
• Cash and cash equivalents at the end of the quarter was $1.01 billion; net debt (total debt less cash and cash equivalents) was $1.04 billion

Kevin Moriarty, Chief Financial Officer, stated, “We delivered another strong quarter of cash generation due to the combination of improving profits and higher working capital velocity. After adjusting for acquisitions and currency, working capital declined $48 million sequentially even though organic revenue grew $316 million providing evidence of the strong working capital management demonstrated by our team. We closed the quarter with over $1 billion of cash on the balance sheet and $224 million remaining in our share repurchase program. With this strong financial position, we enter fiscal 2014 with the flexibility to capitalize on growth opportunities to drive further improvement in our financial metrics.”

Fiscal Year 2013 Results

			Fiscal Year Ended
			June 29,				June 30,
			2013				2012				Change
			$ in millions, except per share data
Sales			$	25,458.9			$	25,707.5			-1.0	%
GAAP Operating Income			$	626.0			$	884.2			-29.2	%
Adjusted Operating Income (1)			$	775.5			$	957.8			-19.0	%
GAAP Net Income			$	450.1			$	567.0			-20.6	%
Adjusted Net Income (1)			$	485.1			$	607.9			-20.2	%
GAAP Diluted EPS			$	3.21			$	3.79			-15.3	%
Adjusted Diluted EPS (1)			$	3.47			$	4.06			-14.5	%

(1)		A reconciliation of non-GAAP financial measures to GAAP financial measures is presented in the Non-GAAP Financial Information section in this press release.

• Sales for the fiscal year decreased 1% from the prior year to $25.5 billion; organic revenue was down 5.3% year over year and 4.2% in constant currency
• Adjusted operating income of $775 million, 3.1% of sales, decreased 19% year over year
• Adjusted diluted earnings per share of $3.47 decreased 14.5% year over year; GAAP diluted earnings per share was $3.21, down 15.3% year over year
• Cash flow from operations increased 32% year over year to $696 million; investments of $262 million were made in value creating M&A and another $207 million in share repurchases

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