Data #3 chalks up growth across the board

Data #3 chalks up growth across the board

A stronger focus on building strategic partnerships and capabilities has seen Data#3 register record financial results.

The Queensland-based services company reported the best end-of-year results in its history, with revenues totalling $197 million, up 12 per cent from last year. Profits also rose by 15 per cent to $3.9 million.

CEO, John Grant, said it had experienced strong growth across all areas of its business. Services grew by 30 per cent on the previous year to $38 million, boosted by a 51 per cent increase in overall contract revenues.

The company's push to strengthen its six key strategic relationships - including those with Microsoft, Cisco and Citrix - also played a part in securing the good results, he said.

"In the past 18 months we have invested to grow and deepen our capabilities," he said. "This took us out of applications reselling, for example, and infrastructure products that were fringe. We've focused on major technologies delivered by international vendors."

The launch of its software asset management consultancy service at the start of this year and its ongoing licensing business had also been key contributors to the balance sheet, Grant said.

Sales were propelled by customer demand in areas that Data#3 had developed its prowess in, such as business continuity, networking enhancement, virtualisation, disaster recovery and security, Grant said.

"These are areas which, from a business point of view, have proven to be priorities for our customers," he said.

At odds with hardware pricing declines reported by the broader channel, Data#3 also showed improvements in margins across server, networking and personal systems products, with sales reaching $158 million. Grant said this was because it had grouped its volume-based products with more enterprise solutions.

"There's no doubt there's been a decline in desktop PCs over the past year, but we have offset that with other products that have held or improved margin," he said.

But while confident of improving results next year, the market remained very competitive in terms of gaining customers and resources, Grant said. One of the keys to future success would be retaining skilled staff.

"It is vital for us to secure existing people and continue to enhance their skills in our business," he said.

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