Feeds

Computacenter issues profit warning

Y2K dragging on...

  • alert
  • submit to reddit

Intelligent flash storage arrays

Computacenter has issued a profit warning due to slower than expected recovery from Y2K.

The UK's biggest reseller said profits were in line with the company's expectations in the first quarter, but "we are seeing a shortfall relative to budget in Q2".

It anticipates "the delayed recovery will affect Q3, albeit to a lesser extent".

The group, which earlier this month made a hostile bid for rival UK reseller Compel, said today it expected to remain "strongly in profit". But it warns that its results for the full financial year look likely to fall below current analysts' forecasts.

"With the growth of e-commerce, the IT challenges facing our corporate customers have changed substantially since 1999. One consequence is that it is taking them longer than we anticipated to bring new projects on stream post-millennium," Computacenter said in a statement.

It also blamed delayed widespread use of the Windows 2000 operating system which it said was not expected to gain momentum until the latter part of the year. "This is having the effect of slowing down new IT infrastructure roll-outs at the present time," it said.

However, the company remains upbeat for the future - it is starting to see the first big W2K implementations, and its Sun Microsystems business is blooming on the back of accelerated demand for e-commerce applications.

Computacenter forecasts profit before tax for the year July 1999 to June 2000 to top £55 million.

"In the medium and longer term we remain extremely confident about the outlook for the group," it says. "Our strategy of continued investment in developing the range and scale of our service businesses remains unchanged and on track." ®

Choosing a cloud hosting partner with confidence

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
Big Content outs piracy hotbeds: São Paulo, Beijing ... TORONTO?
MPAA calls Canadians a bunch of bootlegging movie thieves
Google Glassholes are UNDATEABLE – HP exec
You need an emotional connection, says touchy-feely MD... We can do that
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
Just don't blame Bono! Apple iTunes music sales PLUMMET
Cupertino revenue hit by cheapo downloads, says report
Hungary's internet tax cannot be allowed to set a precedent, says EC
More protests planned against giga-tariff for Tuesday evening
US court SHUTS DOWN 'scammers posing as Microsoft, Facebook support staff'
Netizens allegedly duped into paying for bogus tech advice
prev story

Whitepapers

Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Top 5 reasons to deploy VMware with Tegile
Data demand and the rise of virtualization is challenging IT teams to deliver storage performance, scalability and capacity that can keep up, while maximizing efficiency.
Mitigating web security risk with SSL certificates
Web-based systems are essential tools for running business processes and delivering services to customers.