Q1 FY27 revenue +1% to $649.1M; operating income -10% on margin pressure and AI-chip shortages

Filed August 4, 2026 · Period ending June 30, 2026 · Compared to 10-Q Aug 7, 2025 · ~2 min read

Key Changes

• high

  Memory-chip shortage driven by AI demand causing rapid price increases and extended lead times, expected to persist for at least the next few quarters. Company carrying more inventory for longer periods.

  MD&A: Business Trends verify on EDGAR →
• high

  Operating income fell 10% YoY to $38.8M (6.0% margin) despite 1% revenue growth, as gross margin compressed 60bp from lower net-basis third-party sales and segment mix, partially offset by 90bp improvement in vendor consideration.

  MD&A: Operating Results verify on EDGAR →
• high

  Cash conversion cycle deteriorated from 26 to 41 days YoY, driven by 6-day DSO increase (more extended-term customer sales) and 8-day DIO increase (longer delivery schedules tied to chip shortages).

  MD&A: Working Capital verify on EDGAR →