IT services company Datacraft Asia has reported rising third quarter revenues and profits, though its bottom line growth was lower than expected due to losses at its Chinese and South Korean operations.
For the three months to the end of June 2004 the Hong Kong-based company – which is majority owned by the South African IT services outfit, Dimension Data – made sales of $89.7 million, up 18% compared to the year ago period, with net profit up to $377,000 from $43,000.
The company said that it had seen revenue increases in all countries except South Korea, and that losses in South Korea and China dragged down its bottom line. The company said that future growth would be built on focusing on improving in those countries, though in general it expects the market to remain highly competitive and price pressure to continue.
CEO Bill Padfield said: In China, it is encouraging that we achieved our sales targets, although there is still a lot more to be done. Korea is another key priority country where we need to fully implement and align the services and solutions strategy, and develop its MNC business.