Articles about Operating Profit

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Capita: 2,250 jobs cut, more offshoring, more robots... Merry Xmas!

Troubled outsourcing giant Capita is reacting to a post-Brexit slowdown by confirming it will axe roughly 2,250 staff, which includes sending more jobs to India and using robots to automate certain parts of the operation. The company will also try to flog off parts of the sprawling empire, bits that are no longer deemed part …
Paul Kunert, 08 Dec 2016

HPE UK preps the redundancy ride as Chrimbo looms

Cost-cutting at Hewlett Packard Enterprise's CSC-bound services business looks set to continue right up to the point it is sold in the spring, leaked documents have indicated. In a note to his staff this week, Maurice Mattholie, HPE UK and Ireland veep for IT Outsourcing – which part of the outgoing Enterprise Services (ES) …
Paul Kunert, 02 Dec 2016
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Samsung share plummets – but it’s not because of the Burning Note

Samsung's phone sales have fallen 10 per cent in the last year, but the Note isn't to blame. The analysis comes from market researcher CCS Insight, which says the Korean giant is in decline because it is withdrawing from low-margin volume segments. Last week Gartner identified a 14.2 per cent fall in share, rather than …
Andrew Orlowski, 01 Dec 2016
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Jingle bells, RM tells, some staff to go away... via Skype

RM Education sprinkled some festive cheer among its staffers by confirming in a Skype call with them that redundancies are in the offing. In a statement sent to El Reg, RM managing director Toby Black, confirmed "with sincere regret" that 70 people are to lose their jobs across the business, including 35 from the head office …
Paul Kunert, 24 Nov 2016
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Vodafone blames €5bn H1 loss on cutthroat Indian competition

Vodafone struggled with declining revenues and profits in its first half of this fiscal year, despite blaming its €5bn net loss on a writedown of its Indian arm's value thanks to increased competition. The British telco, which from April this year has been counting its coins in euros instead of pounds, recorded a net loss of € …
Gareth Corfield, 15 Nov 2016

Got a cold flannel? Acer Q3 profits were bigger than cost of your lunch

2016 will forever be remembered for the Brexit vote, the Donald's presidential victory and maybe, just maybe, the year that Acer's bottom line recovery started in earnest. OK, the last one is a long shot. The Taiwanese notebook business has reported calendar Q3 results, and while the top line continued to slide on the prior …
Paul Kunert, 11 Nov 2016

Redcentric CFO quits after botched accounts discovered

The chief bean counter at managed services slinger Redcentric has left the business with “immediate effect” following the discovery of multi-year accounting misstatements that will cost a minimum of £10m to rectify. The London Stock Exchange-listed biz made the admission about fiscal errors to the City this morning, and the …
Paul Kunert, 07 Nov 2016
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Lenovo hires tech 'big brains' to turn around crappy sales

With sales shrinking in every corner of the portfolio and staff losing their jobs, Lenovo said Thursday it has hired some of the industry's "top minds" – presumably to help it figure a way out of its perfect storm. The Chinese giant has reported an 8 per cent year-on-year drop in Q2 revenue to $11.2bn, though this was up 12 …
Paul Kunert, 03 Nov 2016

Brexit? No impact at all, chuckles reseller juggernaut

The storm clouds Softcat pointed to gathering over the industry in the months prior to the EU referendum didn’t rain on the firm’s parade after all, judging by financial results outlined to the City today. The mid-market reseller said in the spring that business confidence could be dented by political uncertainty, but as it …
Paul Kunert, 19 Oct 2016

Exertis gets claws in Hammer for undisclosed sum

DCC Technology today confirmed its subsidiary, Exertis, has gobbled specialist storage and lesser known server distie Hammer for an undisclosed sum, which should help ease recent top line pressures. Hammer trades with “almost” 1,000 reseller, system integrator and cloud service provider punters, selling infrastructure gear …
Paul Kunert, 14 Oct 2016
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Hey, you know what Samsung is also burning after the Galaxy Note 7 fiasco? $2.3bn

The extraordinary cost of the Galaxy Note 7 recall and withdrawal has been revealed in the latest financial figures from Samsung. On Wednesday, the company revealed its preliminary third-quarter earnings and slashed estimated operating profit from 7.8 trillion Korean won to 5.2 trillion won. The difference is US$2.3bn, almost …
Kieren McCarthy, 12 Oct 2016

That's cold: This is how our boss told us our jobs are at risk, staffers claim

Shrinking Cisco Gold reseller Intrinsic Technology has put a bunch of staff across various departments at risk of redundancy amid an organisational restructure. Employees at the Merseyside-based company were last week ushered into one of three boardrooms where presentations were played simultaneously to sales, HR & support and …
Paul Kunert, 27 Sep 2016

Oracle execs get that shrinking feeling

It still pays to run Oracle, just not as much as it used to - top executives’ packages shrank by double digits in fiscal ’16 as the software titan continued to desperately seek out cloud business. Company co-founder Larry Ellison, who these days also carries the CTO and exec chairman titles, received $41.5m in total for the 12 …
Paul Kunert, 24 Sep 2016

Tech Data to slurp Avnet TS for $2.6 BEEELLLION

Tech Data is to buy Avnet Technology Solutions for $2.6bn in a deal that, when completed, will create the chunkiest enterprise IT distie on the planet. Under the terms of the transaction, Tech Data will stump up $2.4bn in cash and 2.785 million of its shares (roughly seven per cent of the ownership position), the US companies …
Paul Kunert, 19 Sep 2016

The Rise, Fall and Return of TomTom

Interview Yesterday TomTom announced seven new consumer products (eight if you count the two SatNav units) with four fitness and three navigation products, its highest High Street profile for some years. Corinne Vigreux Corinne Vigreux Tech pundits were preparing the last rites for the SatNav pioneer a few years ago, but it has …
Andrew Orlowski, 09 Sep 2016
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Equistone grabs stake in print services slinger Apogee

Private equity investor Equistone Partners Europe has slurped a stake in managed print and document services slinger Apogee Corporation. Maidstone-headquartered Apogee employs around 450 staff across 14 offices in the UK and mainland Europe selling hardware and managed services on kit from Canon, Xerox, Konica Minolta and …
Paul Kunert, 05 Sep 2016

Corporates ARE sniffing around Windows 10, says Computacenter

Bulky corporate enterprise punters are starting to fall for the, ahem, charms of Windows 10, Computacenter's chief executive claimed today as he flashed his firm’s calendar first half-year trading figures. Mike Norris, boss of the London-listed services-based reseller, said the pending contract sign-off for managed services …
Paul Kunert, 26 Aug 2016

Avnet's interim CEO is here to kick sales team ass and play golf. And he's all out of golf balls

Avnet's new acting CEO has started the clock ticking on a corporate turnaround – after he talked up ideas to overhaul a business that has disappointed Wall Street's moneymen. Former Lenovo boss Bill Amelio – who’s been on Avnet’s board for the past two years – was made interim chief in July, and last night fronted his maiden …
Paul Kunert, 11 Aug 2016

Avnet CEO: Sales down, profits down, but we dumped $70m in cost

Bill Amelio might be the new interim exec holding high office at Avnet but the messages he delivered as the distie reported another quarter of falling sales were all too familiar - define the strategy and cut costs. The industry old timer, a former chief exec at Lenovo, was made top dog at Avnet on 11 July, though he can’t …
Paul Kunert, 10 Aug 2016
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HPE Software memo: We ARE several senior sales veeps lighter

The global and EMEA sales leaders of Hewlett Packard Enterprise’s software organ – the bit that is in discussions with potential buyers – have each left in the space of a week, insiders have told us. Frank Vella, vice president of worldwide sales who reports to Alan Fudge (himself the number two at HPE Software) exited on 29th …
Paul Kunert, 10 Aug 2016
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Rackspace CEO: Yes, Brexit has hit us, yes we sold our Cloud Sites biz

Rackspace execs confirmed the sale of its Cloud Sites hosting sub to Liquid Web but ignored the white elephant in the room that Apollo Global is reportedly in talks to slurp the entire organisation. The private equity house might well end up taking Rackspace private again in a deal valued at up to $4bn, buying the company time …
Paul Kunert, 09 Aug 2016

Microsoft has stopped cutting sales fees for resellers? Yep

Microsoft has quit hacking into fees paid for channel software sales, and reselling clouds is getting more profitable – these seemed to be the major takeaways from top brass at Insight Enterprises in an enterprising Q2. Revenue at group level went up two per cent to $1.46bn, but this top line expansion was driven purely by the …
Clodagh Doyle, 04 Aug 2016
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Post-Brexit spending freeze in UK is real, says enterprise distie titan

Arrow Electronics Inc’s Enterprise tech division in Britain was struck by delayed spending among customers following the outcome of the EU Referendum, the distributor’s chief bean-counter claimed last night. CFO Chris Stansbury estimated “late purchases and weakening of accounts” after the 24 June vote “negatively impacted our …
Paul Kunert, 03 Aug 2016

RM to resell Apple, Lenovo, HP, Dell to YOUR children

With revenues down and education spending stuck in the doldrums, supplier RM has hit upon a novel idea to expand - reselling low-margin kit from the vendors that helped sink its own hardware production line. The one-time system builder powered down its own manufacturing facility in Oxford in late 2013 after mounting losses, …
Paul Kunert, 01 Aug 2016

SCC-owned SCS bags HR and Payoll biz Pyramid

Specialist Computer Services, part of the privately held technology dynasty SCC, has slurped fellow Midlands-based HR and software minnow Pyramid or an undisclosed sum. Pyramid is a two decade old independent software house staffed with HR and Payroll pros that design, code, markets and support a database product that, we are …
Paul Kunert, 01 Aug 2016
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What's Niu? No longer profitable, revenues down... but we're hiring!

Once-profitable managed services business Niu Solutions is now burning cash and CEO Shaun Ledgerwood reckons the company will take three years to get back in the black. Based in Surrey, Niu Solutions flogs services to the retail and financial sectors, collecting monthly fees on contracts ranging from one to five years. …
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BT sees 35% sales gain as it digests hearty EE meal

Sales jumped by 35 per cent for BT's first quarter to £5.7bn, with profit before tax up 16 per cent to £802m - mainly due to its £12.5bn slurp of EE. The mobile operator contributed £1.2bn for the quarter and £84m in operating profit. Elsewhere other parts of the biz were lacklustre. Its Wholesale biz fell 10 per cent to £ …
Kat Hall, 28 Jul 2016

Official: AMD now stands for Avoiding Miserable Death

AMD fans are over the moon today as their favorite processor designer has sold more chips than expected in the three months to June 25. The Sunnyvale, California, biz beat analysts' estimates on revenue and earnings per share in a billion-dollar quarter that ended in the black rather than the usual red: the Radeon maker banked …
Chris Williams, 21 Jul 2016

The cloud ain't making it rain for Intel right now: Tech giants pause server chip sales

Analysis Intel's stock price fell on Wednesday after it became clear the processor maker is not selling quite as many server processor chips as investors had hoped. The Silicon Valley giant reckons its CPU sales into data centers will hit double-digit growth by the end of the year. So far, with half the year gone, we're staring at mid- …
Chris Williams, 21 Jul 2016
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RM: School spending on tech is soft, soggy and downright subdued

School spending on tech remains “subdued”, according to specialist education supplier RM at the half-way stage of its fiscal year 2016, ended 31 May. Revenue slid 3.8 per cent year-on-year to £76.8m, but excluding the disposal of SpaceKraft, which made sensory learning devices for children with special needs, sales fell 1.4 …
Paul Kunert, 04 Jul 2016
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Intrinsic: We have no CEO. Otherwise everything is tickety-boo

Cisco Gold partner Intrinsic Technology has confirmed it is CEO-less - which Reg readers already knew - but that all is OK, everything is working out as planned. Honestly. As revealed by us this week, the Merseyside-based reseller has burned through four leaders in five years with the latest departure – Mark Bates – having …
Paul Kunert, 23 Jun 2016
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Count 'em and weep: Intrinsic looking for fifth CEO in five years

The high office revolving doors at Intrinsic Technology are clearly still swinging - the company is on the hunt for its fifth CEO in five years after attempts to find a buyer ended unsuccessfully. Top dog Mark Bates has left the organisation after two years in charge and been replaced on an acting basis by non-exec chairman …
Paul Kunert, 21 Jun 2016

SCC blows up tech sevices balloon, fiscal '16 profits swell

‘Thank god for our IT services biz’ might be the general sentiment expressed by top brass at SCC after another year when the shelf life for firms reselling hardware and software got a little shorter. Services might not be coming good for all IT vendors - for that see the gloom at some of the majors - but they accounted for the …
Paul Kunert, 06 Jun 2016

Microsoft's biggest UK reseller flashes fuller figures for '15

Microsoft licensing mountain Trustmarque won’t have done its chances of snaring a new private equity backer any harm by pushing out a decent set of trading figures for calendar year 2015. The York-based reseller, which merged with sister biz TES at the start of last year, reported turnover of £191.9m, up eight per cent on a …
Paul Kunert, 06 Jun 2016
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Go Comparex: Microsoft house counts cost of dealing with Gov.uk

The cost of righting historic accounting wrongs and winning lower margin or empty calorie government business has left Microsoft licensing slinger Comparex UK nursing losses. The firm piled on the British Pounds in the year ended 31 March 2015, growing turnover organically by a whopping 31 per cent to £41.95m, P&L accounts …
Paul Kunert, 02 Jun 2016
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It's a Hull of a thing: Kcom takes a break from 8-year sales slide

Telecoms provider Kcom stemmed its declining revenue for the first time in eight years, reporting growth of 0.4 per cent to £349.2m for the full year 2015/16. However, operating profit fell to £6.3m from £50.9m mainly due to increased investments, compared with the previous year. That was mainly due to its fibre roll-out in …
Kat Hall, 27 May 2016
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Lenovo: Markets for our products 'will remain challenging'

Mergers and acquisitions and restructuring costs led to Lenovo booking its first annual loss since 2009, but crappy demand for PCs and smartphones didn’t exactly help to wax the bottom line either. The Beijing HQ’d biz reported sales for fiscal ’16 ended 31 March of $44.9bn, down three per cent year-on-year, after ending the …
Paul Kunert, 26 May 2016
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Hungry UK services slinger swallows hosting biz for £65m – sources

UK managed services slinger Pulsant has agreed to fork out £65m for data centre and hosting biz Onyx, multiple sources close to the situation have claimed. A "for sale" sign was erected outside Onyx’s Stockton-on-Tees HQ in January and the process was managed by Deloitte, as we exclusively revealed. “The deal is done,” said …
Paul Kunert, 26 May 2016
HP's Multi Jet Fusion 3D printer

HP Inc-eption: Our new 3D printers print themselves, says CEO

Just like Leonardo DiCaprio and his photogenic pals crafted dream worlds out of dream worlds in the hit flick Inception, we're told HP Ink prints its 3D printers using its 3D printers. Take one of HP Ink's new and expensive 3D printers, and you can print out half of the components needed to build another one, CEO Dion Weisler …
Chris Williams, 26 May 2016
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Hardware sizzles for HPE – and brings home the bacon

Software and IT services might make the world go round – at least in the heads of Wall Street moneymen – but it was hardware that once again brought home the bacon for Hewlett Packard Enterprise. For the three months ended 30 April (second quarter fiscal year 2016 – summary, tables [PDFs]), HPE's turnover edged up one per cent …
Paul Kunert, 25 May 2016
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'Grey tech' broker DP Data Systems has gone titsup

DP Data Systems has given up the ghost just months after committing to quit the grey market in favour of “authorised” tech. The company’s website stated, “Sorry we have now ceased trading”. Suppliers and customers were then directed to email addresses of the firm's accounts and credit control departments respectively. Back in …
Paul Kunert, 25 May 2016
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Steady as she goes at Softcat, Q3 trading in line with forecasts

London Stock Exchange-listed reselling machine Softcat has issued a steady as she goes update to the market though it was stat light and made no further mention of economic storm clouds gsathering. The Marlow-based biz that floated late last year, warned at the half-way stage of fiscal ’16 ended January of “risks posed to …
Paul Kunert, 24 May 2016
£10 notes. Pic: Howard Lake

Mega UK distributor DCC Tech: 2016 was our annus horribilis

The once seemingly unstoppable distribution juggernaut DCC Technology hit some unmovable barriers in fiscal ’16 caused by slumping tab and smartphone sales and the loss of a retail gig. The parent of UK trading arm Exertis admitted today it had endured a "very difficult year". The LSE listed firm still managed to bump up …
Paul Kunert, 17 May 2016
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Symantec: I know we said things'd get better when we sold Veritas...

Symantec is slipping back into cost-cutting mode just months after the split with storage arm Veritas was supposed to provide the healing balm the business so clearly needed. The standalone security biz wants to carve out savings of $400m via an “efficiency programme” that includes “eliminating stranded costs” from the sale of …
Paul Kunert, 13 May 2016

Arrow ECS top dog parades $200m (run rate) cloudy biz

Cloud computing is on track to be a $200m plus annual business for Arrow ECS, the enterprise IT distie's big boss has claimed. The reliably boring firm - in a good way if you are an investor - notched up its umpteenth straight quarter of expanding sales, jumping nine per cent to $1.8bn for Q1 of fiscal ’17 ended 2 April. …
Paul Kunert, 04 May 2016

Argos defection to Tech Data whips Ingram Micro's bottom... line

The loss of a retail supply contract with Argos helped push Ingram Micro’s European sales growth into the barrier’s during car crash Q1 financials. The US-headquartered tech distributor reported sales of $2.66bn on this side of the pond for the period ended 31 March. This was down 13.35 per cent year-on-year. Ingram is being …
Paul Kunert, 03 May 2016
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There's never been a better time to be a product reseller... if you like pain

Tough times are here again for the on-premise infrastructure providers with Insight Enterprises the latest to report top line slippage. The global reseller filed sales of $1.17bn for calendar Q1, down four per cent year-on-year, as declines in European and Asia Pacific ops wiped out the slight progress made in North America. …
Paul Kunert, 29 Apr 2016

Samsung chuckles, swerves around Apple's Q1 phone sales crash

Samsung delivered what Apple couldn’t in the first three months of 2016 - increased smart phone sales. The chaebol today reported overall group net profit of 5.25 trillion won ($4.5bn), up 5.6 per cent for calendar Q1 on sales that grew 5.6 per cent to 49.7 trillion won ($43bn). The giant’s mobile unit reported eight per cent …
Gavin Clarke, 28 Apr 2016
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Flat sales, falling earnings? That will be FY'16 for Datatec

The parent of integrator Logicalis and distie Westcon is to report a double digit drop in earnings and flat sales for the fiscal ’16 ended February, it warned today. Progress on both fronts was downed by the “significant strengthening of the US dollar and mixed global economic conditions”, South African stock exchange-listed …
Paul Kunert, 26 Apr 2016
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Goodbye: XPoint is Intel's best exit from NAND production hell

Analysis 3D XPoint memory represents a door way to non-volatile profits for Intel and a passage away from NAND production, which is bedevilled by over-supply from costly fabrication plants with high costs. This idea starts from a simple question: how is Intel’s flash business doing? Not well, according to a financial analyst. In its …
Chris Mellor, 21 Apr 2016