Network equipment reseller and services provider Dimension Data Holdings Plc [DDT.L] expects no immediate improvement in market conditions after reducing its loss in its latest financial year.
In the 12 months to September 30, 2003, the South Africa-based company made a net loss of $420.2 million, an improvement on the $2.58 billion loss in the previous year when it was hit with large goodwill amortization and restructuring costs. Before goodwill, amortization and exceptional charges, the company made a loss of $36.3 million compared to a profit of $30 million in 2002.
Revenue for the year fell 4% to $2.01 billion, with 42% coming from services. The company enjoyed growth in demand for managed services where sales grew 41% to $499.5 million.
Its African operation was its best performer, with sales up 24.8% at $365.4 million, and its largest regional operation in continental Europe grew sales 5.9% to $382 million, representing 19% of group revenue.
In contrast its US operation reported a 31.3% decline in sales to $346 million, and widened its operating loss to $35.1 million from a loss of $24.5 million in the previous year, which was attributed in part to weak demand for application and network integration services.
At the company’s separately listed Asian unit, which trades as Datacraft, sales fell 18.8% fall $328.7 million, and operating profit fell 87% to $2.2 million. The company blamed poor demand from the telecoms and enterprise sectors, exacerbated by the Sars outbreak in the region.
This article was based on material originally published by ComputerWire.