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itX results profit from VMware and Sun business

itX results profit from VMware and Sun business

Distributor continues to hunt for acquisition opportunities

itX recorded a 60.9 per cent increase in net profits for the year to June 30

itX recorded a 60.9 per cent increase in net profits for the year to June 30

ASX-listed distributor, itX (ASX:ITX), has highlighted its VMware relationship and increased growth in Sun server sales as key growth contributors throughout the 2008 financial year.

The distributor recorded a 60.9 per cent increase in net profits for the year to June 30 to $6.8 million. Pre-tax earnings were also up by 46.5 per cent to $9.6 million, up from $6.5 million. Year-on-year revenues increased 17.3 per cent to $107.9 million.

“The robust profit result was assisted by some significant performance rebates awarded to us in the first quarter of 2007/08 by some of our major suppliers for achieving their 2006/07 full-year sales targets,” itX general manager, Greg Newham, said.

Other highlights included the distributor’s Sun channel development provider (CDP) team, which achieved healthy growth in the business compared to the same period last year. The launch of itX’s Pump up the Volume campaign saw Sun’s AMD- and Intel-based servers jump by 20 per cent over the past six months, Newham said.

Its software distribution and managed services business also posted organic growth in revenue and margin.

“Organic growth in our continuing businesses contributed more than two-thirds of the profit growth in 2008,” he said.

On the services side, itX’s acquisition of Web application hosting business, ICO in July last year, made a strong contribution to the company’s pre-tax earnings of about $1 million, according to Newham.

“ICO has performed well above our initial expectation and proven to be an excellent acquisition,” he said.

Its relationship with both Citrix and VMware put the distributor in a good position to take advantage of growth in the virtualisation space, he said.

The Nexos services business unit was also performing ahead of expectations. The acquisition of Briell Marketing also had the potential to increase its growth within itX environment.

“It should make a significant contribution to the overall profitability of the company. In addition, we continue to seek acquisitions that will add value to our business,” Newham said.

“The combination of further organic growth in our distribution and services businesses, along with the addition of new business, should put us in a good position to optimise results in FY2009, notwithstanding the less buoyant business environment that we expect to encounter.”


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Tags icosunCitrixnexosbriell marketingitXintel

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