Articles about Operating Profit

sap security vulnerabilities

SAP’s cloudy future prompts a dip in profit forecast

German software giant SAP has cut its profit margin forecast for 2017, as its cloud offering is set to take off and dent the company's (still-bulging) pockets. According to its results today, Tuesday, by 2017 operating profit will be around €6.3bn-€7bn (£4.8bn-£5.3bn) on revenue of €21bn-€22bn (£16bn-£17bn). This is down from …
Kat Hall, 20 Jan 2015

Salesforce: Profit pah! We’ll be back in the red before you know it

Software service slinger Salesforce.com banked its first operating profit in 18 quarters — yes, you read that correctly — but reassuringly confirmed it will be back in the red again in the next trading period. The cloudy-based CRM and marketing apps maker reported sales of $1.51bn for the three months ended 30 April, up 23 per …
Paul Kunert, 21 May 2015
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Sales up, profit up, but no champagne corks popping at Rackspace

The gods of tech sales finally smiled on Rackspace in calendar Q2 of 2015. But the biz isn't celebrating just yet, because it's public cloud arm is stuck in first gear. The cloud server-hosting biz reported an 11 per cent year-on-year growth in turnover to $489.4m (£314.2m) in the three months ended 30 June. Total costs and …
Paul Kunert, 11 Aug 2015

Light the lanterns people, Acer made a profit in 2014

A recovery of sorts is taking place at Acer with calendar 2014 P&L accounts returning to the black in a meaningful way, bringing closure to three consecutive years of losses. The latest CEO Jason Chen is steadying operations, and more conservative sales forecasts are also paying off, as Acer wasn’t forced to write down stock, …
Paul Kunert, 26 Mar 2015

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
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Acer: We ARE profitable – oh yes, we made £40k big ones in Q2

For the second quarter in a row, Acer's P&L accounts have remained in the black, though its operating margins must be a cause for concern – just 1.48 per cent, at the last count. And part of the reason for the slim pickings is partly the fault of those pesky chaps at Microsoft, the company reckons. The firm released turnover …
Paul Kunert, 07 Aug 2015

Salesforce back in the red, reviews future black ink orders

After a brief interlude in the black, Salesforce is back in more familiar loss-making territory, according to the financials for its second financial quarter this year. The giant CRM provider posted total revenue of $1.63bn (£1bn) for the period, an increase of 24 per cent year-on-year. Operating profit remained above water …
Kat Hall, 21 Aug 2015

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
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RM’s core division will soon be resources, not tech, reckons analyst

The inevitable after-effects of withdrawing from hardware production and dwindling Building Schools for the Future contracts are leaving a huge hole at RM. The education specialist today filed interim results for the six months ended 31 May, and they make for good reading ... if you're a rival. Total revenue fell 13.3 per …
Paul Kunert, 06 Jul 2015

Tech Data: screw you Wall St, we're a high flying distie

Walloping Wall Street expectations is becoming a bit of a habit for Tech Data - tighter cost controls beefed up operating profit, and higher than expected sales led to a double digit spike in the share price. The world’s second largest tech distie suffered at the hands of currency exchange rates - like the rest of the US-based …
Paul Kunert, 21 Aug 2015
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 …
ASUS Chair Jonney Shih Computex 2015 press conference

Smartphone sales looking rosy for Asus, despite PC meltdown

While the mobe power base is shifting from the traditional players to the new upstarts, with Samsung and HTC suffering at the hands of Huawei and Xiaomi, Asus is having a good time in the good old handset market. Sales were up from three million in the first quarter to five million in the second and the company is predicting …
Simon Rockman, 12 Aug 2015

Exertis parent DCC swallows Computers Unlimited for £24m

DCC Technology has acquired consumer tech distie Computers Unlimited for £24m, the Ireland-headquartered group confirmed today. The buy adds roughly 2,000 trading accounts, offices in London, Paris and Barcelona that employ roughly 200 staff and hardware/software from 70 vendors including Adobe, Epson and WD. CU operates four …
Paul Kunert, 19 May 2015
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Fujitsu slapped down in Land of the FALLING YEN

Revenue dropped 2.4 per cent at Japanese IT giant Fujitsu to ¥1,171.5bn (£6.6bn, $9.9bn) in the firm's third-quarter results, when compared with the same period last year, although a fall in the yen propped up non-domestic revenue levels. Sales in Japan took the biggest hit, falling 8.6 per cent due to a decline in shipments of …
Kat Hall, 30 Jan 2015

Samsung and HTC: Gaze upon our EMBIGGENED numbers, pesky analysts

Cost-cutting and better-than-expected mobile shipments helped Samsung Electronics and HTC trash analysts' profit forecasts, according to both firms' unaudited Q1 data. Results from the Korean chaebol took a turn for the worse in 2014 as demand for its smartphones and tabs crashed, causing an inventory pile-up that proved costly …
Simon Rockman, 07 Apr 2015
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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
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Phoenix IT Group comes back in black as new owners beckon

Phoenix IT Group is back in the black following the first full year of CEO Steve Vaughan’s turnaround strategy, in what is likely to its last fiscal before the Daisy Group acquisition is sealed. The LSE-listed organisation is still struggling to get the top line moving in the right direction, as revenue fell nine per cent year- …
Paul Kunert, 08 Jun 2015
Funnel of cash. Credit: via SXC – http://www.sxc.hu/profile/Leonardini

Symantec: Look at our Q4 numbers ... no, not those ones

The road to separation continues to be anything but smooth for Symantec’s security operation, particularly on the consumer front, as it again suffered from sales shrinkage, unlike the breakaway storage biz. In the last set of full year numbers from the firm, sales fell three per cent to $6.5bn, including a four per cent slip in …
Paul Kunert, 15 May 2015
Sony Vaio 11 Duo hybrid PC Ultrabook

Vaio returns from the dead wearing sharper suit, bolts in neck

Sony Vaio is making a comeback overseas, with plans to relaunch the brand on Windows 10 devices in the US and Brazil later this year. Last year, Sony axed 5,000 workers worldwide and offloaded its loss-making PC business to private equity firm Japan Industrial Partners (JIP). Chief executive of JIP Yoshimi Ota told the Wall …
Kat Hall, 19 Aug 2015
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Peak Google? Chocolate Factory cuts costs amid dwindling growth

Google is curbing staff recruitment and introducing a number of penny-pinching efficiency practices to try and gets its profit growth back on track, according to reports. A number of recruiters, venture capitalists and employees told the Wall Street Journal the Chocolate Factory is casting an increasingly critical eye over its …
Kat Hall, 14 Jul 2015
£10 notes. Pic: Howard Lake

Oh no! That's another year you didn't grow, KCOM

Brit telco KCOM Group has reported top line shrinkage for the seventh consecutive year, this time blaming problems on “legacy activities” while unsurprisingly pinning its future on cloud services glory. The tech integrator/ comms provider reported a 6.1 per cent fall in revenues to £347m for the year ended 31 March - the last …
Paul Kunert, 05 Jun 2015

Ebuyer MD Carlisle exits following board level bust up

Online tech bazaar Ebuyer has waved goodbye to UK MD Stuart Carlisle following a disagreement over strategic direction – he wanted to open bricks and mortar retail stores, and the powers that be, well, didn’t. In the interim, the business will be run by FD Mark Pullen and board director Armando Sanchez, the company confirmed …
Paul Kunert, 26 Aug 2015

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 …

Outsourcing tanker CSC sales growth torpedoed

Leaky outsourcing tanker CSC saw sales growth drift off on the horizon for yet another quarter – the first of its fiscal 2016 – but the services slinger is back in the black, without the help of tax benefits. The fact CSC slashed costs and expenses by nearly half a billion dollars had nothing to do with bottom line beefiness, …
Paul Kunert, 12 Aug 2015
Marc Benioff of Salesforce. Pic: Techcrunch

Benioff's Bulging Benefits: Salesforce CEO handed massive pay cheque

Salesforce.com's chief executive has been handed a massive $39.9m (£25.7m) pay packet, despite objections from a number of major shareholders related to its modest record of profitability. Shareholders narrowly approved the package for Benioff and the six other directors, totalling $81.6m (£53m) in 2015. Dutch pension company …
Kat Hall, 11 Jun 2015

CSC picks up axe, takes aim at its own profitable bits

CSC confirmed last night it is to split the US public sector biz from the rest of the group – the only division last quarter where sales aren’t dropping and which generates the highest operating profit. As expected, the hard-pressed integrator is to hive off the operation into a separately listed company, with sales of $4.1bn …
Paul Kunert, 20 May 2015
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
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 …

US titans roll out the numbers... wow, reselling is a tough game

Calendar Q1 numbers are out for shape-shifting resellers Insight Enterprises and Systemax, with the former reporting flat sales and profits but the latter faring much, much worse. Both are trying to rapidly develop services operations based on consulting, managed services and the cloud to replace commoditised or 'empty calorie' …
Paul Kunert, 12 May 2015
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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

Pray for AMD

We were warned, but AMD's second-quarter results were still a shocking bloodbath, with revenue that missed analysts' estimates and came in even lower than the chipmaker's own revised guidance. Last week, we were cautioned to expect AMD's revenue for the period ending on June 27 to be down 8 per cent sequentially, contrary to …
Neil McAllister, 16 Jul 2015

Insight becomes latest victim of global currency conundrum

Not a month passes without US-based tech suppliers bemoaning the ruinous impact of unfavourable for-ex rates on their financial well-being, and Insight Enterprises is the latest to do so. The Microsoft enterprise licensing house reported sales of $1.42bn for Q2 that were marginally up year-on-year but would have risen seven …
Paul Kunert, 04 Aug 2015
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Attenda for sale this year? Not on your nelly, says CEO

App hosting and co-lo slinger Attenda was expected to be put up for sale by owner Darwin Private Equity later this year, but postponed the process, and it’s latest financials perhaps explain why. The venture capitalist backed an MBO of Staines-based Attenda in 2011 for £50m and multiple sources told us in May that it had eyed up …
Paul Kunert, 19 Jun 2015
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

Life after Lord Shugs looks good, as Viglen directors' packages swell

Being a director at Viglen has become considerably more lucrative since Lord Shugs offloaded the tech supplier to Westcoast Holdings. The last standalone financials from both Viglen and sister firm XMA (the pair have been integrated) were filed at Companies House and make for remarkably boring reading, but in a good way. The …
Paul Kunert, 31 Mar 2015
New World Computing Inc, King's Bounty

Alternative Networks: CEO retiring, long live...

Alternative Networks will wave goodbye to long-serving CEO Ed Spurrier at the end of this fiscal year in September, with current chief operations man Mark Quartermaine waiting in the wings for the top job. The LSE-listed comms and tech outfit confirmed the succession plans today as it outlined half-year numbers for fiscal 2015, …
Paul Kunert, 03 Jun 2015

Avnet sales slip but EMEA operation's off the hook - for now

Avnet Technology Solutions is on the slide again as its sales and operating profit went south in Q2 fiscal ’15. The distie’s latest president has clearly got his work cut out to turn in consistent and sustainable growth. The enterprise tech wing of Avnet Inc today reported financials for the three months ended 27 December. …
Paul Kunert, 22 Jan 2015

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
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Sun shines on Datatec despite Logicalis' sales 'n' contract woes

It was the Westcon distribution arm that kept the tills ringing for parent Datatec, as integrator sub Logicalis was struck by a “significant” contract loss in Blighty and weaker product reselling. Across the group – which also includes consultancy Analysis Mason – revenues leapt by 13.3 per cent to $6.4bn for fiscal ’15, ended …
Paul Kunert, 13 May 2015

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 …
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Peak Samsung: Bottom line walloped in Chinese mobe, slab war

Cheap slabs and smartphones from Chinese brands are taking a toll on the once seemingly unstoppable tech sales machine Samsung Electronics as it forecast a year-on-year crash in Q4 profit. The chaebol warned in a preliminary earnings guidance message that operating profit will be more than 37 per cent lighter on the same period …
Paul Kunert, 08 Jan 2015
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
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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
Giant burger

Rigby Private Equity stuffs its face with a slice of Wick Hill

Security and storage value-added distributor Wick Hill is the first piece of channel real estate that Rigby Private Equity has invested in, with the proceeds to be used to fund wider expansion in mainland Europe. As The Channel exclusively revealed last week, the Midlands-based tech dynasty has incorporated a private equity …
Paul Kunert, 06 Jul 2015

RM has been schooled: Sales fell by over £69m in fiscal 2014

The downward pressure on school budgets, the shuttering of the PC production line and the shift from reselling hardware sucked almost £70m in sales out of education supplier RM last year. The company reported turnover of £202.5m for the fiscal 2014 ended 30 November, down more than 22.5 per cent year-on-year, with the Education …
Paul Kunert, 02 Feb 2015
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Wick Hill decides the, er, Price is right

Channel veteran Tony Price has landed as UK sales director at specialist security distie Wick Hill. Price is a former boss at reseller WStore and has worked in various levels across distribution at now defunct CHS Electronics and second user wholesaler Chiltern IT. “We’ve got a significant expectation of increased sales in …
Paul Kunert, 16 Jul 2015