Updated: itX profits despite challenging financial year
- 28 July, 2010 11:09
ASX-listed distributor, itX, made $7.58 million profit for its 2010 financial year after despite challenges presented by Oracle’s acquisition of Sun Microsystems.
Sun is a big part of itX’s hardware business.
Revenue hit $159.9 million, a year on year increase of 9.1 per cent. Net profit after tax was $7.58, up 3.8 per cent form the last financial year. Results listed are unaudited.
itX managing director, Laurie Sellers, said the company had a tough time with its IT distribution business during the second half of the financial year.
“The acquisition of Sun Microsystems by Oracle in January 2010 caused temporary disruption to our supply chain and significantly impacted our revenues from this very important business segment,” he said in the statement.
itX general manager of commercial and company secretary, Rick Marks, said the disruption by Sun was mainly caused changes in the vendor’s processes.
“That is behind us and we certainly look forward to continue to have a great future with Sun under Oracle’s ownership,” he said.
But the company still expects difficult business conditions to continue into the new financial year.
“From our point of view, we are a conservative company,” Marks said. “We would prefer to under promise and over deliver rather than say everything is great and rosy.
“We don’t believe the whole economy has turned around… so we are being responsibly cautious in terms of providing an outlook.”
itX’s software distribution business maintained market share but suffered lower trading margins due to pricing pressures in the market.
While IT distribution was down overall, the company had success with its Web hosting and technology product segment as well as with its newly acquired specialist health supplier, Sydmed.
Marks said there is potential for more acquisitions this year.