Feeds

Datrontech issues profit warning as share prices fall

Is it a buy, buy, buy again?

  • alert
  • submit to reddit

High performance access to file storage

Distributor Datrontech has issued its second profits warning in 15 months, blaming a sluggish performance from the PC assembler market in the UK. Now the group financial director Gerry Connolly is leaving Datrontech with a £115,000 pay-off following the profits warning. Datrontech now expects pre-tax profits of £2.6 million for the six months to 30 June, down from £3.2 million, and profits for 1998 as a whole to be down from £6 million to £5.2 million. The profits warning - which follows similar warnings from other rival distributors including Ilion - drove Datrontech shares down 23p to 60p on the UK stock market yesterday. Chief executive Mark Mulford said that the profits warning came after component sales this summer to UK assemblers were slower than expected. He said that the reason for the slow-down was unclear, but followed overstocking in the channel in Q2. The slow-down meant that the component distributor had to decide whether to try and keep margins up, or to lower prices to try and kick-start the market. Mulford said that Datrontech was trying to maintain margin on components. Ideal Hardware shares also fell 25p to 247.5p.

High performance access to file storage

More from The Register

next story
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
Sorry London, Europe's top tech city is Munich
New 'Atlas of ICT Activity' finds innovation isn't happening at Silicon Roundabout
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
It may be ILLEGAL to run Heartbleed health checks – IT lawyer
Do the right thing, earn up to 10 years in clink
prev story

Whitepapers

Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
HP ArcSight ESM solution helps Finansbank
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.