Didata hails European turnaround

Network integrator Dimension Data (Didata) highlighted a turnaround in its European business as it reported a 22 per cent year-on-year surge in first-half fiscal 2007 revenues.

The Cisco Gold partner said its European turnaround programme had sparked “improved performance” in most countries, including a return to break-even in France. The UK “consolidated its position” after a difficult 2006, the reseller added.

Total turnover hit $1.77bn for the six months to 31 March, while operating profit hiked 50 per cent to $55m.

At 22 per cent year-on-year, European turnover growth topped expectations, while the region’s operating profit rose from break-even last year to $4.3m.

Alastair Edwards, senior research analyst at Canalys, said Didata’s European arm was benefiting from the financial restructuring initiatives introduced last year. “It is also riding the wave of Cisco’s growth, particularly in its Advanced Technologies, where Gold partners are having to invest as part of the changes to Cisco’s partner programme,” he said.

Brett Dawson, chief executive at Didata, said in a statement: “Our strategy is to provide infrastructure and services that enable companies to adopt a converged network to realise efficiency and cost gains. As more and more of our clients take this step, we are benefiting and the first half of the year saw growth across all lines of business and in every region.”

Growth was led by its Converged Communications arm, which saw turnover rise 64 per cent.

Didata’s Network Integration and Security divisions were also buoyed by the migration towards IP-based converged networks, growing a respective 21 per cent and 16 per cent. These three divisions accounted for around 60 per cent of turnover during the first-half fiscal quarter.

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