Feeds

DiData profits rocket

Cisco's woes won't hit, says networking reseller

  • alert
  • submit to reddit

Networking reseller Dimension Data Holdings has reported a 68 per cent rise in profit for the first half of its financial year.

The South African-based company, which is listed in the UK and is Cisco's biggest reseller outside the US, said it made a pre-profit of $159.6 million before exceptional items for the six months ended March 31 2001. This slightly beat expectations, and compared to $95.1 million for the same period the previous year.

Sales grew to $1.2 billion from $814.9 million a year earlier.

UK sales fell to $140 million in the six-months, from $163 million, with the company partly laying the blame on longer sales cycles.

Revenue grew in all other regions, with Asia up 38 per cent to $291 million, Europe at $191 million from $30 million, and US sales growing to $144 million from $34 million.

DiData CEO Jeremy Ord said the company had been able to grow organically despite the slowing economy.

And according to Ord, Cisco's woes won't affect the reseller too much. "If you analyse Cisco's results, they have been strongly affected by their telco business," he said.

"Of our total sales, 28 per cent were telcos, but only seven per cent is product....Cisco's having problems but most of it is emanating from telcos' networks. We don't sell Cisco products for carrier networks."

The company also expects to grab market share from rivals during the current general slump in the economy.

Regarding the future, DiData, which beat Compaq to buy computer services firm Proxicom earlier this month, said that, while market adoption rates were "less predictable", "prospects based on the pipeline going into the second half of the year remain good." ®

Related Stories

DiData snatches Proxicom from Compaq
DiData buys yet another reseller
DiData queers Compaq Proxicom pitch

Whitepapers

Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Backing up distributed data
Eliminating the redundant use of bandwidth and storage capacity and application consolidation in the modern data center.
The essential guide to IT transformation
ServiceNow discusses three IT transformations that can help CIOs automate IT services to transform IT and the enterprise
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.