Cisco, HP help propel Dicker Data to $531.5 million half-year
Dicker Data has reported revenue of $531.5 million for the half year to 30 June, with strong growth across Cisco and HP driving revenue increases.
The company’s interim financial report for the half year shows revenue was up 6.7% on the previous half year, ending December, with net profit before tax up 156% to $16.2 million and net profit after tax up 544.9% to $10.1 million.
The company says the revenue result is ahead of its projections for the year and within its full year expectations of $1 billion revenues for the full financial year.
Key contributors to the increase were Dicker Data’s largest vendors, Cisco and HP, with the distributor noting that Cisco – its largest vendor under the Express Data acquisition – increased by 13.3% from $134.4 million to $152.3 million, with most of the upside in the current June quarter largely due to cross-sell opportunities to the distributor’s pre-acquisition customer base.
Under the HP group – the company’s largest vendor pre-acquisition – total revenue was $145.9 million, up $7.0 million on the $138.9 million recorded in the six months to the end of December 2014.
Dicker Data says a number of campaigns in the second quarter around incentive based end of year June promotions helped lift HP revenues during the current period.
The distributor says all other vendors continued to grow with volume, software and other vendors contributing $231.0 million in the first half of this year.
Key vendors Lenovo and Toshiba both had strong first halves, while the addition of new vendors during the period has helped strengthen the revenue position, Dicker Data says.
The distributor says the contribution of newly acquired vendors from the Express Data acquisition, together with merger cost savings, have also resulted in revenue and profit growth in the current period.
The past six months have also seen Dicker Data add a further $7.5 million to its cash balance, which now sits at $11.2 million. Total assets for the half year were also up, at $360.6 million for the period, compared with $301.5 million for the previous six months.