DiData back in the black
South African reseller scrapes into profit
Dimension Data has produced interim profits of $9.9m (H1 2003: -$4.5m) on turnover of $1.18bn for the six months to 31 March, 2004.
The networking equipment reseller said improved demand for services had driven growth but the environment remains tough. Growth was strong in the US, Australia and Asia but more weaker in Europe and South Africa. Revenues in Asia grew six per cent on the same period of 2003. In Europe turnover grew three per cent compared to the first half of 2003.
Gross margin improved from 20.5 per cent to 21 per cent.
DiData has suffered for overpaying for acquisitions at the height of the technology boom. It bought Proxicom in the US for $448m. It sold the company in March for so little it did not have to disclose the precise figure.
The company has appointed Andile Ngcaba as chairman designate of its African operations. He will lead a Black Empowerment consortium to acquire 25 per cent of DiData's South African operations. The company hopes the deal will lead to new business in the medium term.
The full RNS statement is available for download here..®