Feeds

Dimension Data hit by Asian loss

Bad debts, low demand

  • alert
  • submit to reddit
ComputerWire: IT Industry Intelligence

Network integrator Dimension Data Holdings Plc said yesterday that there is little demand for new contracts, and revealed that its Asian operation fell into the red during the first half of its fiscal year.

In the six months to March 31, the Johannesburg, South Africa-based company was hit with exceptional charges and goodwill of $722.8m, which gave it an overall net loss of $696.2m, compared to a net loss of $1.6bn in the year-ago period. Revenue fell by 10.8% to $1.1bn.

Sales from its Asian business, Datacraft Asia, fell by 28% to $211m, and the company also said that it will set aside between $19m to $23m to allow for bad debts with certain Chinese clients. Datacraft took a $21.7m charge in the half-year relating to a reduction in headcount, which made it loss-making at a net level - its first since floating on the stock market in 1995.

Jeremy Ord, Dimension Data chairman, said: "There is little demand for new projects so buying cycles are long and pricing pressure intense." He said he expects the second half of Didata's fiscal year to improve on the first half, but admitted that the company's visibility remained "cloudy".

© ComputerWire. All rights reserved.

Whitepapers

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.
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.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
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.