Datatec financials signal more local investment

Datatec financials signal more local investment

South African distributor Datatec is looking to boost its Asia-Pacific operations following strong financial results for the full year to March 31, 1999.

Datatec saw its worldwide revenues exceed $US1 billion for the first time while operating margin is up to 6.1 per cent from 5.3 per cent in 1998.

The company registered turnover of R6641 million ($US1.1 billion) and achieved an operating profit of R406 million ($US69 million).

As a result, the company reports it will continue to expand its international operations across key technology markets including Australasia.

In particular, it will focus on investments in high-margin, skills-based areas such as network-based systems integration, network services, consulting and electronic-business solutions.

Datatec made a big splash in the Australian market in November last year when it acquired Australian Systems Integrator CNI Group for $US23 million.

However, despite promising growth, the Asia-Pacific accounts form just 5 per cent of Datatec's worldwide revenues. North America leads the revenue count at 40 per cent, followed by Europe at 39 per cent, Southern Africa at 15 per cent and South America at 1 per cent.

Datatec primarily offers value-added distribution for Nortel Networks, Cisco Systems, Lucent Data Networking and 3Com. Its core brands are Westcon and Logical.

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