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

SANS - Survey on application security programs

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. ®

Combat fraud and increase customer satisfaction

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?
Record labels sue Pandora over vintage song royalties
Companies want payout on recordings made before 1972
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
Intel sees 'signs of improvement in the PC business' but earnings remain 'Meh...'
Prospects for the future, however, please Wall Street money men
What's a right pain in the ASCII for IBM? Its own leech-like hardware biz
Keep your eyes on our cloud while we remove this pesky thing, say execs
Oracle's Larry Ellison has the MOST MASSIVE PACKAGE IN PUBLIC
Billionaire IT baron earns twice as much as the next in line, Disney chief Bob Iger
prev story

Whitepapers

Mainstay ROI - Does application security pay?
In this whitepaper learn how you and your enterprise might benefit from better software security.
Combat fraud and increase customer satisfaction
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.
Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.