Dual-listed information and communications technology group Datatec on Wednesday reported that its gross margins for the quarter ended June 30 were 13.8%, up from 12.8% in the comparable period of 2015.
The group described the quarter as “a sound trading start to the year”, despite tough global macro environments, marked by continuing volatility in many markets.
Revenue fell 11% to $1.97-billion, down from the $2.22-billion reported in the June 2015 quarter.
CEO Jens Montanana said the improvement in gross margins was encouraging in a period where revenues were comparatively softer, as the “much stronger” dollar continued to impact emerging markets.
“We are committed and focused on completing the restructuring initiatives within Westcon, which will enhance our operational performance, including the new enterprise resource planning system roll-out and business process outsourcing transformation.”
Westcon’s revenues declined by 13%, primarily as a result of strong revenue growth in the prior comparable period, particularly in the Comstor business. Gross margins improved to 10.6% from 10% in the comparable period.
North American revenues were softer due to lower Cisco sales in the Comstor division’s federal business unit, while the Asia-Pacific region had a solid performance in Asia, offset by a weaker performance in Australia.
Germany was the best performing market within Europe, the Middle East and Africa while trading in the Middle East and Africa was softer than in the comparable period.
Datatec will release its results for the six months ending August 31, on October 19.