DiData ups revs and profits
Word of warning on future though
Dimension Data grew revenues by 19.5 per cent and net profits by 32.8 per cent in the year ended 30 September 2008.
Group revenues were $4.5bn and net profit was $114m, up from $86m last year. Operating profit was $182m, up 38.9 per cent.
The results are impressive - especially given DiData's reliance on emerging markets and hardware sales. Cisco warned recently that times were hard for hardware sales and emerging markets.
CEO Brett Dawson said the results kept them on track to hit five per cent operating margins in the medium term.
Dawson did sound a note of caution: “The global crisis of confidence which started in the financial markets is now undermining most industries. Within this environment we expect the IT infrastructure market will be slower in general and that we will be affected accordingly." He said the company was tightening investment and expenditure in response and will continue to re-evaluate and adjust spending if necessary.
The company gets 60 per cent of revenues from Asia, the middle East and Africa and Australia. The US brings in 15 per cent of revenues, 78 per cent of which come from hardware sales and 22 per cent from services - Cisco predicts sales will bounce back first in the US. Only in the middle East and Africa is this reversed, with 70 per cent of revenue coming from services.
Financial services account for 23 per cent of DiData's revenues, 26 per cent from media and communications companies and 16 per cent from the public sector.
The firm employs 11,055 people, up from 10,607 in 2007.
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