Upbeat Insight Enterprises returns to growth

Fourth-quarter sales inch up by two per cent as demand for IT products returns

Green shoots of recovery: Insight returned to growth in Q4

Corporate reseller Insight Enterprises topped its internal expectations for the final quarter of 2009 as it reported seeing signs of green shoots.

The Fortune 500 firm - which yesterday learnt of its success in Buying Solutions’ £6bn government IT procurement framework - returned to growth in the three months to 31 December as revenues rose by two per cent year on year to $1.2bn (£767m). This is a far cry from the 17 per cent drop in revenue it logged in Q3.

GAAP net profit hit $17.4m, compared with a net loss of $79.4m a year earlier.

Chief executive Ken Lamneck, who only took the reins in December, said: “We are very pleased to report that much stronger IT demand in the fourth quarter and operating leverage across our leaner cost base resulted in fourth quarter financial results that exceeded our internal expectations.”

Fourth-quarter EMEA sales rose seven per cent to $351.3m, although were flat in local currencies. Hardware grew 18 per cent, with software sales falling seven per cent and services holding steady.

In EMEA, Insight generated 30 per cent of its fourth-quarter turnover from hardware, with 69 per cent coming from software and one per cent drawn from services.

For the year as a whole, revenues fell 14 per cent year on year to $4.1bn.

Lamneck continued: “In my first six weeks on the job, I have been pleased to get to know the team at Insight, learn more about our differentiated portfolio of offerings and begin making plans for our long-term future.

“Our focus in 2010 will be on our strategic priorities and on improving our operational execution.”