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Articles about Operating Profit

Datatec: turnover and profit went south in tough fiscal '14

Global tech goliath Datatec Group was left counting the cost of a botched ERP upgrade, margin chomping competition and legacy vendor claims at its distie wing Westcon in a year of declining profit. The South Africa-listed firm managed to push up revenues eight per cent to $5.69bn during fiscal '14 ended 28 February, helped by a …
Paul Kunert, 14 May 2014

BSkyB profit knocked by BT footie struggle and O2 broadband costs

BSkyB has felt the pinch from huge operating costs as it continues to battle with its pay-TV archrival BT and absorbs the buyout of O2's consumer broadband network. The giant media firm reported a jump in total revenue of £1.84bn for its first quarter this morning - up 7 per cent from £1.71bn in the same quarter a year ago. It …
Kelly Fiveash, 17 Oct 2013
InsightEnterprises

Insight Enterprises operating profits tumble down back of sofa

Tech reselling monster Insight Enterprises saw operating profits dive on this side of the Atlantic due to a spike in operational costs and enterprise customers delaying or shelving purchases. Sales at the EMEA operation grew two per cent year-on-year to $378.4m but earnings from operations dropped by 53 per cent to $3.98m. …
Paul Kunert, 15 Feb 2013

Insight warns Q1 sales and operating profits to fall

Insight Enterprises hasn't managed to dust off the economic cobwebs just yet if prelim calendar Q1 financials are anything to go by. The reselling powerhouse said today it expects revenues to decline five per cent on the same quarter a year ago to $1.2bn, and warned operating profit will drop to $17m from $25.6m - excluding …
Paul Kunert, 19 Apr 2013

Samsung didn't break quarterly profit record, consoles itself with $7.7bn

Samsung Electronics said today that it won't be posting record quarterly earnings for the first time since 2011 when it announces profit for January to March this year. The Korean chaebol said that it estimates an operating profit of about 8.7 trillion won ($7.7bn) for the first quarter of 2013 on sales of around 52 trillion won …

Hey, Acer: Is that a rounding error, or did you actually make a profit?

Only a foreign exchange tailwind and stock disposal helped ailing Acer return to profit for calendar Q1 of 2013. The Taiwanese firm booked sales of NT$91.9bn (£2bn) during the period, down more than 18 per cent year-on-year. This was "in line with the original shipment outlook", Acer said in a statement accompanying the numbers …
Paul Kunert, 07 May 2013
The Register breaking news

PEAK SAMSUNG? Shares slide ahead of BEELLLIONS in profit

Shares in Samsung Electronics continued to slide today after the chaebol's latest estimated earnings failed to impress investors on Friday. Although Sammy's flagship subsidiary - which makes tellies, chips, phones and more - is once again expecting record-breaking quarterly results, its projected £5.4bn ($8bn) operating profit …
Samsung Galaxy Note Android tablet and phone

Samsung's flagging phone fortunes hit profits hard

Samsung has promised to shake up its smartphone line-up to try to win back some of the ground it has lost in the sector, after it revealed that its third-quarter operating profit was the lowest in more than three years. Sammy’s operating profit was 4.1 trillion won ($3.9bn), while net profit was 4.2 trillion won. In the same …
box_shifting_channel

Software Box banks double-digit profit spike in fiscal 2012

Microsoft Large Account Reseller Software Box Ltd (SBL) tucked away an improved set of financials in fiscal 2012 with profits pumping out comparatively healthy double digits. The York-based purveyor of hard and soft tech saw sales rise 4 per cent to £87.9m, operating profit jump 25 per cent to £2.2m and net profit climb 31 per …
Paul Kunert, 18 Jan 2013

Nokia: Buh-bye LUMIA and cash-sucking handset pals... LET'S MAKE SOME MONEY!

Nokia has raised its long-term profitability target and expects its new business of concentrating strictly on the telecoms equipment game to grow next year. The Finnish firm, which has focused on making telco gear and its intellectual property portfolio since ditching its handset unit earlier this year, said that strong demand …
top of the bt tower

BT: Consumers and cost cutting save the day

Cost cutting and 88,000 new broadband punters helped BT bank more profits in calendar Q3, although revenues went in the opposite direction as all divisions outside of the consumer wing reported declining fortunes. The former comms state monopoly turned over £4.38bn of sales in the quarter ended September, down two per cent year- …
Paul Kunert, 30 Oct 2014
union_jack

Bechtle's double digit sales, profit hike in UK? Satisfactory, says parent firm

A double digit hike in sales and profits at the Brit arm of reselling powerhouse Bechtle was merely described as "satisfactory" by its German owner. Coming in the middle of the steepest economic downturn ever, The Channel - suggests the parent firm is perhaps being a little too ruthlessly rational. Sales for calendar 2012 at …
Paul Kunert, 30 Apr 2013

Toshiba: Strong yen CHEWED our tripled profit, spat out loss

Despite a massive hike in operating profit, Toshiba's overall results for the quarter are at a loss as restructuring costs and the high rate of Japanese yen ate into the cash. Toshiba's cost-cutting and rejigging helped operating profits to jump by 178 per cent to ¥11.47bn (£93.32m) from ¥4.1bn (£33.36m) in the same quarter last …
Avnet TS

Avnet CEO: Sales flat, profit down... but 'outlook' is better

Avnet's CEO says the distributor is moving in the right direction after reporting fiscal Q2 numbers that were dramatically better than the opening three months of its new financial year. Sales came in essentially flat on a year ago period at $6.7bn but contain the financials of four firms acquired in October and November …
Paul Kunert, 24 Jan 2013
The Register breaking news

France Telecom takes huge profit hit after swallowing €1.8bn writedown

Telecoms is not the fat market it once was as the low spend in the UK 4G auction showed today, and Euro telco giant France Telecom has also felt the pain. The former French monopoly telco had to write down €1.84bn on units in Poland, Egypt and Romania, which was partly to blame for the hefty 79 per cent plunge in profits year-on …
Anna Leach, 20 Feb 2013

Acer's tiny raft of profit smashed onto rocks by Gateway and co

The much touted recovery at PC maker Acer didn't show up in 2012: a write-down on its assets dragged its accounts into the red. The vendor said its sales in 2012 slid 9.6 per cent year on year to NT$429.5bn ($14.4bn, £9.53bn), bagging it a razor-thin operating profit of NT$1.03bn ($34.6m, £22.8m). But that was wiped out by an " …
Paul Kunert, 20 Mar 2013

Exetis Micro P parent smirks, files another set of bumper numbers

DCC Technology, parent of Euro disties and specialist service providers, is again laughing all the way to the bank after plugging slower tab sales with demand for PCs, gaming systems and a larger reseller customer base. The network of IT companies trade under the Exertis brand and include Exertis Micro P, Exertis Gem, Exertis …
Paul Kunert, 05 Nov 2014

Samsung faces down TAB and smartphone MOUNTAIN HORROR

Samsung has confirmed sluggish sales of smartphones and tablets combined with efforts to shift the stock mountain that cast a shadow over Europe, denting group sales and profits for calendar Q2. The Korean chaebol has been out of step with falling market demand and as exclusively revealed by The Channel back in May, Sammy UK …
Paul Kunert, 31 Jul 2014
Avnet TS

Avnet Q4 sales, profit hit as resellers keep wallets shut

Avnet sales and profit in Q4 slumped across both its components and tech solutions businesses on the back of a summer slowdown in reseller spending and a blistering currency headwind. Turnover for the period ended 30 June fell 8.8 per cent to $6.3bn, operating profit dropped by just over a fifth to $213.4m and net profits sunk …
Paul Kunert, 08 Aug 2012
Brazil flag

Logicalis: World Cup and IBM kit drop-off hit us hard in H1

Excitable Brazilian firms initiated a network spending freeze during the World that led to a $50m drop-off in kit sales for Logicalis, the integrator’s parent company Datatec said today. Turnover for the first half of fiscal 15 ended August came in seven per cent below the same period a year ago at $714.4m, which when coupled …
Paul Kunert, 15 Oct 2014
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Computacenter profit hit by start-up costs in Germany

Computacenter's shift towards IT services instead of products has started to pay off, giving revenues a boost, but first half results were still hit by the costs of catering to its new contracts. "We are not pleased that we did not properly anticipate the operational impact of winning so many contracts at the same time," …
The Register breaking news

Samsung expects whopping $7.3bn profit from mobes

Samsung reckons it's in line for a record quarterly operating profit after Apple's reduced orders for chips and screens seem to have failed to make a dent in the South Korean business. The fruity firm is clearly hoping to hamper or just distance itself from the South Korean firm by unwinding their long partnership as their …

Life is good in the data centre – UKFast boss reports from hot tub

If life is hard in the data centre space, then someone forget to tell the boss of UKFast, who may just be toasting a bumper 2013 from the confines of his corporate hot tub. The Manchester-based hosting biz, which plies its trade from three fully owned bit barns in Trafford Park, posted results for last calendar year and they …
Paul Kunert, 13 Oct 2014

RM: Killing our PC unit hit our top line, but our bottom line is pert

Murdering the PC building biz was always going to result in some top-line slippage for Brit specialist education tech supplier RM, but the move to shutter the production line hasn't hurt profits, quite the opposite. The Oxford-based biz today reported half-year numbers to 31 May with sales down more than 22 per cent to £92.1m …
Paul Kunert, 07 Jul 2014

Come close, dear reader. Past those trees you'll see a non-Microsoft Nokia Oyj in the wild

Nokia – the Finnish networking firm, not the Microsoft division that sells low-cost mobes running Windows Phone – reported earnings for another difficult quarter on Thursday, yet showed signs that its operations are beginning to stabilize since punting its Devices and Services business off to Redmond. Net sales for the second …
Neil McAllister, 24 Jul 2014

Insight CEO: We've found bottom line balm to soothe Microsoft pain

Microsoft’s heftiest enterprise licensing pal Insight Enterprises is now managing the biting fee reductions emanating from Redmond to such an extent that it feels enough comfort to lift bottom line forecasts for 2014. In contrast, as the reseller titan rolled out Q2 numbers showing revenues stagnation, it pulled down estimates …
Paul Kunert, 01 Aug 2014

Brit telco goes shopping again, tosses Telindus UK into trolley

British telco telent has hoovered up troubled network service provider Telindus UK for an undisclosed sum, its second major acquisition this year, as market convergence moves gains pace with cloud seemingly the meeting point. This is the latest carve up of the Telindus Group, owned by Belgacom, with the Spanish and Irish ops …
Paul Kunert, 04 Nov 2014

Phoenix IT Group CEO: Turnarounds don't happen overnight

The turnaround at Phoenix IT Group initiated by CEO Steve Vaughan was never going to happen overnight and the latest set of declining half-year numbers for the period ended September are testament to that point. The LSE-listed tech services biz this morning reported revenues of £107.4m, down 8.1 per cent on the corresponding six …
Paul Kunert, 25 Nov 2014

Insight: Tech market's stabilising, time to start hiring again

It was a mixed bag of a third calendar quarter for reseller titan Insight Enterprises: sales shot up, as did operating profit, but gross margin was slapped by lower vendor rebates and overheating admin expenses. The US-based biz reported year-on-year sales growth of eight per cent to $1.24bn; rising four per cent in North …
Paul Kunert, 31 Oct 2014

Avnet CEO: enterprise tech spending on the turn in fiscal Q1

A dark cloud hanging above Avnet’s Asian and EMEA computing components biz cast a shadow over the relatively decent start to fiscal ’15 for the Technology Solutions division. The enterprise tech bellwether reported sales of $2.46bn for the quarter ended September, up 2.4 per cent on an organic basis versus the same period a year …
Paul Kunert, 27 Oct 2014

SAP trousers €1bn quarter in software sales, fumbles profit

Business is so good at software industry bellwether SAP that it felt compelled to pre-announce its financial results for its fiscal Q2. In the past three months, SAP broke €1bn in new software licence sales for the first time and posted its best second quarter ever. The preliminary figures show SAP on a roll, with its tenth …

Shopping spree helps Arrow counter organic sales slump

Healthy organic sales growth has once again proved slippery for enterprise tech bellwether Arrow Inc to grasp, though demand for heavy duty software and hardware started to re-emerge. At group level, the tech distie reported revenues of $5.68bn, up seven per cent year-on-year as reported – but this was largely due to …
Paul Kunert, 30 Jul 2014
Euro notes

Ah, so that's why French IT giant Atos is officially full of Bull

The old adage that there's safety in numbers could well be applied to systems integrators Bull and Atos as they come together in a marriage due to be consummated next month. The theory behind Atos's €620m (£490m) bid to buy cloudy and security biz Bull is to plug gaps in the portfolio, bag more customers and wring out some costs …
Paul Kunert, 29 Jul 2014
management consumerisation

Ingram UK basks in rosy glow of ... successful cost-cutting

Throwing costs overboard, smaller interest repayments and walking away from lower-margin business beautified Ingram Micro UK’s bottom line in calendar ’13, as its latest Companies House filing reveals. The Milton Keynes-based biz reported turnover of £968.5m, up 2.15 per cent, or 1.4 per cent when inter-group trade (£36.7m) was …
Paul Kunert, 14 Oct 2014

Capita splashes £80m on network biz Updata

Capita has coughed an eye-watering £80m in cash for fellow Public Services Network (PSN) provider Updata, as El Chan predicted months ago. The pair are already well known to each other: they have an alliance in Scotland and linked arms on contracts including the recent Scottish WAN project valued at £325m over nine years. As …
Paul Kunert, 01 Apr 2014

US giant Avnet plots cost slash fest in EMEA enterprise tech arm

The EMEA wing of enterprise distie Avnet Technology Solutions is again in cost-cutting mode after a double-digit sales dive blighted a growth spurt across the pond as local PC system builders missed out on the XP refresh. Revenues for Q4 of fiscal’14 ended 28 June were $2.73bn, up 0.3 per cent on an organic basis, or 4.2 per …
Paul Kunert, 07 Aug 2014
Funnel of cash. Credit: via SXC – http://www.sxc.hu/profile/Leonardini

Systemax: Senior Blighty bods let us down, so we cut them

Systemax has opened up on the senior management re-org of UK ops after admitting the business took a turn for the worse over the summer. The transatlantic reseller last night reported calendar Q3 financials: turnover was up four per cent year-on-year to $825.4m, but excluding the SCC Netherlands acquisition, organic growth was …
Paul Kunert, 05 Nov 2014
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It's a bad day to be Serco's CEO... or an investor, come to that

Scandal-hit integrator Serco today issued its fourth profit warning of this fiscal and calendar year, confirmed a £1.5bn write-down and provision to cover to loss-making contracts and effectively exited private sector business process outsourcing. The financial markets reacted negatively, sending the company’s share price …
Paul Kunert, 10 Nov 2014

AMD-AMMIT! Hundreds face axe at chip maker as PC, graphics crash

Following a grim earnings report on Thursday, AMD has announced a restructuring plan that includes axing seven per cent of its workforce by the end of the year. The plan will see AMD issuing layoff notices to about 710 employees worldwide, and is expected to cost the chipmaker $57m in severance payments. "While decisions that …
Neil McAllister, 17 Oct 2014

Disappearing storage and server projects hit Arrow ECS

If ever proof were required that tanker sized distributors needs to keep acquiring to maintain growth levels then Arrow Inc's fiscal Q1 numbers provided the perfect test case. The Fortune 500 firm reported a five per cent rally in sales to $5.08bn but exclude the firms it hoovered up last fiscal year, including security distie …
Paul Kunert, 07 May 2014

Bloodied Samsung's profits down 25% as it clings to mobe crown

Samsung issued unaudited earnings guidance for the second quarter of its fiscal 2014 on Tuesday – and although it once again pulled in an impressive pile of coin, all is not going as well as was hoped for the world's biggest smartphone maker. The company said it now anticipates revenues of around 52.0 trillion South Korean won …
Neil McAllister, 08 Jul 2014
Sky 3D football

BSkyB broadband growth chopped in HALF

BSkyB saw its broadband customer growth halved in the company's third quarter, for which it partly blamed its takeover of O2's home broadband network where as many as 30,000 subscribers quit the service. The pay-TV giant said that operating profit tumbled 8.5 per cent to £910m for the nine months ended 31 March, after the …
Kelly Fiveash, 01 May 2014
LG 5in, 440dpi, 1920 x 1080 display panel

LG Display: No one buys TVs any more, but mobe screens? KerCHING

LG Display has reported its highest quarterly profit this year as smartphone screens for mobes like the iPhone continue to prop up poor returns in TV displays. The screen firm said that operating profit jumped 31 per cent to 389bn Korean won ($365m) in the third quarter compared to the same period last year. But TV's proportion …

Logicalis splits with UK sales director Brooker after five months

After less than five months on the job Logicalis sales director Tony Brooker has left the Slough-based integrator, sources have told The Channel. Brooker took control of the sales floor in July to replace Phil Orford, who departed by mutual consent in January at around the same time that CEO Garry Bullard’s short-lived tenure at …
Paul Kunert, 24 Nov 2014

Restructuring costs drag down Avnet's Q2 profits

The better start to fiscal '14 at Avnet Inc is continuing though EMEA remains the damp patch for the enterprise tech side of the house and component sales in the Americas were weaker than expected. If revenue gains are the measure of success - which they frequently are in wholesaler land - then Avnet did well, with group …
Paul Kunert, 23 Jan 2014

Accounts probe stings IT distie giant Tech Data on the bottom line

The residual effects of Tech Data's accountancy blunder have emerged in the distribution goliath's figures for the first quarter of its new fiscal year. While the numbers published today show rising sales, profits – hit by a series of charges including a $12.2m cost related to the accounts cock-up – are well off the pace. Tech …
Paul Kunert, 29 May 2014
Samsung Galaxy S4 Active

Samsung profits deflate after mobile division runs out of puff

Global smartphone leader Samsung took a knock on Friday after releasing Q4 financials that show a drop in profits of 11 per cent from the previous three months – its first quarterly decline in two years. The Korean giant said net profits stood at 7.3tr won (£4bn) for the fourth quarter, while operating profit was 8.31tr won (£5. …
Phil Muncaster, 24 Jan 2014
Broke - empty pockets

How's that big mobile push going, Intel? Oh a million dollars. In 3 months? Wow (sarcasm)

Intel is desperate to reduce its reliance on PCs and servers and break into the markets for mobility, wearables, and the Internet of Things. But its latest earnings report shows it's still struggling to make progress in those areas. How struggling? Sales for the company's Mobile and Communications group, which makes smartphone …
Neil McAllister, 14 Oct 2014
Samsung Galaxy Note 2

Samsung: Ta-da! We made $7.8bn. What do you mean you expected another BILLION?

Samsung Electronics has missed analysts' estimates of its operating profit for the fourth quarter of last year, after a one-off special bonus for employees and slowing demand for high-end smartphones. The company said that its guidance ahead of the full results on January 24 put operating profit at 8.3 trillion won ($7.8bn, £4. …
Sprint CEO Marcelo Claure

Sprint swings axe: Another 2,000 staffers for the chop

Struggling US mobile network Sprint Corp is swinging the axe further and deeper as another 2,000 jobs are to go on top of the nearly 500 announced last month. The move is part of a $1.5bn cost-cutting plan – of which $400m of the savings will be workforce costs – and following on from results that show a a $765m net loss and a 3 …
Simon Rockman, 04 Nov 2014