Healthy results signal end of an era

Healthy results signal end of an era

Getronics last week posted healthy results for the first six months of this year after buying Wang in one of the first indications the market has accepted the combined company.

The network and desktop services specialist achieved a global operating result of 62 per cent to around $175 million, with net earnings up 57 per cent to around $130 million.

Net sales rose 68 per cent to approximately $1942 million.

Robin Dixon, Getronics' Australian managing director, said the results "caught most people on the hop. I think we are starting to shake off the old Wang tag," he said.

The Wang Global acquisition was consolidated by June 1, and the company reports it has changed its accounting policy to account for the integration of Wang Global.

The cost of writing off the acquisition and absorbing Wang's financials, known as amortisation, will be accounted for over a 25-year period.

Dixon explained the company's European operations have accounted for much of the growth, as it is virtually unknown in the US, and the Australian operation is still emerging.

He said the desktop and network management services market is experiencing around 20 per cent growth, largely fuelled by e-business initiatives in the marketplace.

The company claims the improvement in net sales and operating result stem from healthy development in both Business Solutions & Consulting and System Integration & Network Services.

Getronics realised 51 per cent of net sales from its services business, while 49 per cent of total net sales was related to systems.

Net sales of business solutions and consulting services saw an increase of 95 per cent compared to the same period in 1998.

System integration, multi-vendor services and network services also showed healthy growth with net sales growing by 64 per cent.

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