Feeds

Datrontech posts interim profits fall

Memory and components outlook unlikely to improve short term

  • alert
  • submit to reddit

Security for virtualized datacentres

Datrontech saw profits fall by 19 per cent for the six months to 5 July, as memory prices plummeted and its UK components business also performed below expectations. Memory sales at the distributor were 48 per cent down on the previous year, but the results were boosted by profitable networking, storage and service business. Overall, turnover was up 6 per cent to £133.9 million for the half-year, with profit down to £2.6 million from £3.2 million. Interest charges paid by the distributor were up, as a result of higher interest rates and borrowing. In the first six months the interest charges were £15.4 million, compared to £8 million for the six months ended 31 December. Datrontech has warned that the performance of the memory and components business is unlikely to improve in the short term. The outlook for these divisions in the second half of the year has been downgraded. Speaking earlier this month, Datrontech CEO Mark Mulford said the problem with the UK components market was unclear, but he noted demand from system builders for components had been slow over the summer. Mulford said that over-stock in the channel in Q2 also contributed to the slow-down. The networking, storage and service business, where margins are significantly higher than the memory and components business, posted 37 per cent growth to £30.3 million after including the networking business of ICP, its recently acquired Dutch subsidiarr. ®

Security and trust: The backbone of doing business over the internet

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Sony says year's losses will be FOUR TIMES DEEPER than thought
Losses of more than $2 BILLION loom over troubled Japanese corp
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
Special pleading against mass surveillance won't help anyone
Protecting journalists alone won't protect their sources
Big Content Australia just blew a big hole in its credibility
AHEDA's research on average content prices did not expose methodology, so appears less than rigourous
Bono: Apple will sort out monetising music where the labels failed
Remastered so hard it would be difficult or impossible to master it again
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.