Insight exits 2011 on a high as sales and profits rise
Reseller turns small revenue boost into cash pile
Insight Enterprises ground out a decent set of Q4 numbers in spite of the global economic meltdown and a decline in underlying profits across EMEA.
The reseller giant made an operating profit of $42.2m, up 13 per cent, and net income of $34.7m, up 39 per cent, on the back of a two per cent climb in sales to $1.4bn. It reported a tax benefit of $7.6m related to foreign tax credits.
CEO Ken Lamneck said the "modest sales growth combined with higher gross margin and strong expense control" led to the operational profits.
In its North America homeland, Insight posted a one per cent rise in revenues to $922.5m with software sales up four per cent, services up eight per cent and hardware down two per cent. Operating profit soared 29 per cent to $30.4m.
Closer to home, EMEA sales edged up one per cent to $369.4m with software and services up, compensating for flat hardware revenues. Operating profit was $8.5m, down from $10.5m due to "severance and restructuring charges".
The relatively smaller operation in APAC grew turnover by 18 per cent to $68.4m, and operational profits went up marginally to $3.4m.
For the whole of 2011, Insight grew sales ten per cent to $5.3bn, operating profit rose 19 per cent to $147.4 and net profits went up 33 per cent to $100.2m.
The reseller forecasted IT market growth in the "mid single digit range" for 2012 but is expecting to outpace the sector, grabbing market share from rivals by beefing up its "sales force" and expanding "capabilities in key markets".
The firm has already acquired German-based reseller Inmac last month and is not yet done with more buys expected. ®