Feeds

Falling prices boost Computacenter profits

The cheaper the hardware, the greater the demand, the more services it flogs to its blue chip customers

  • alert
  • submit to reddit

Security for virtualized datacentres

Computacenter posted pre-tax profit up 30 per cent for the first half of the year, with the reseller giant saying it welcomed the current industry curse of tumbling hardware prices. The company posted pre-tax profit at £40.7 million and turnover up 16.6 per cent at £904.8 million for the six months ended 30 June. This was against £31.3 million and £775 million respectively for the previous year. Earnings per share jumped 28.1 per cent to 14.6 pence. Computacenter said overall sales growth was down on last year. This was due to falling growth in hardware sales as prices continued to fall and businesses were gripped by uncertainty over Y2k. However, the company said it welcomed the long-term drop in hardware prices as it upped overall hardware sales which leads to increased demand for services. Ina prepared statement, the company said: "In line with our long term strategy, the group has continued to invest heavily in expanding its service operations resulting in accelerated growth in this area of our business in the first half." The company did not detail services growth in the period. But analyst Richard Holway estimated services revenues increased by around 40 per cent (using the criteria of total sales less costs of goods for resale). According to Holway's calculations: "If Computacenter made not a jot of margin on its hardware or other 'goods for resale' then services revenues increased from £140 million to £198 million in the six months." The group also said staff levels had grown by 17.5 per cent this year to 5384. Computacenter's businesses in Europe also performed well. Turnover in France was up 54.3 per cent on last year at FF1,061 million. In Germany sales grew by 146.7 per cent to DM94.4 million for the subsidiary bought two years ago. ®

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
JINGS! Microsoft Bing called Scots indyref RIGHT!
Redmond sporran metrics get one in the ten ring
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
Why Oracle CEO Larry Ellison had to go ... Except he hasn't
Silicon Valley's veteran seadog in piratical Putin impression
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
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.