Jul 18, 2012
Datatec year-end forecast remains on track despite market pressuresBack
SECURITY|Afina Group|Africa|Consulting|Security|Triple AcceSSS IT|Africa|Europe|Latin America|North America|United States|Security|Communication Technology|Product|Security|Jens Montanana|Security|Asia Pacific|Caribbean|North Africa
© Reuse this
The information and communication technology group noted that market conditions in the Asia Pacific and Latin America remained resilient, but continued to be dragged down by a slowing US economy and a weak European environment.
In its interim management statement, released on Wednesday, Datatec reported improved overall revenues across all divisions during the period from March 1 to June 30, compared with the comparative period the year before.
CEO Jens Montanana stated that, while subsidiaries Logicalis and Consulting Services performed relatively robustly during the period, Westcon’s lagging performance in developed markets, such as Europe and North America, placed pressure on overall gross margins.
“Although the outlook has become more uncertain, the defensive nature of our business model continues to be a strong asset," said Montanana, adding that its diversified business and global footprint enabled improved revenues and underlying earnings in a difficult environment.
Datatec has been aggressively pursuing acquisitions to “broaden and deepen” Westcon's product portfolio, add and enhance relationships and expand its footprint, particularly in Latin America, the Caribbean, Europe and North Africa.
The subsidiary recently bought Austrian value-added security distributor Triple AcceSSS IT and its Swiss subsidiary; Latin American and Iberian multinational security, virtualisation and data centre distributor Afina Group; and Indonesian value-added distributor of information security, networking and convergence solutions PT Netpoleon.
Datatec forecast revenues of between $5.5-billion and $5.8-billion for the year ended February 2013, as well as an estimated profit of $104-million, underlying earnings a share of about 55c and earnings and headline earnings a share of about 50c.
The group would release its interim results for the six months ending August 2012 in October.
Edited by: Mariaan Webb© Reuse this Comment Guidelines (150 word limit)
Other ICT News
Recent Research Reports
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
This Week's Magazine
While Ekurhuleni-based transformer manufacturer Reliable Transformers currently designs, manufactures and tests its products according to the SANS 780 specifications for distribution transformers and other applicable transformer specifications, it is working towards...
Global endpoint security solutions company Kaspersky Lab has introduced new measures to prevent cyber criminals from accessing sensitive data, alongside its malware-signature and heuristic device analysis detection methods. Threats to mobile devices have increased...
To ensure uptake and a positive impact, Wireless Fidelity (Wi-Fi) networks in cities must be provided at schools, community centres and commercial centres to enable citizens and government to access information that will improve access to and delivery of services....
Eco-estate Monaghan Farm, located near Lanseria airport, north-west of Johannesburg, has taken a new approach to modern living and sustainability with its 517 ha development, dedicated to farm living.
Forklift and lift-truck distributor Goscor Lift Hi-Reach launched the Genie SX-180, the tallest self-propelled super boom in Africa, in Johannesburg last month. “As the official distributor of the well-known Genie range of equipment in Southern Africa, we are pleased...