Didata revenues recover ahead of NTT sale

Networking integrator claims it is in good shape ahead of £2.1bn acquisition as quarterly revenues rise by over a fifth

Sunny outlook: Didata said it is positive about its prospects

A recovery in product revenues helped Dimension Data (Didata) log a second consecutive quarter of strong year-on-year sales growth ahead of its proposed acquisition by Japanese telco NTT.

According to an interim management statement this morning, the giant Cisco Gold partner achieved 22 per cent growth in its third quarter to 30 June compared with the same period in 2009.

Operating profit and margin also saw “good growth” during the period, the Johannesburg-listed firm revealed.

That is a far cry from the beginning of the year when Didata’s revenues were continuing to fall amid “mixed” market conditions.

The network integrator said its product business recovered strongly during Q3, while managed services saw a double-digit increase. However, its African telecoms arm, Plessey, continued to struggle and made a loss during the quarter.

“The Group remains confident that its target of single-digit constant currency revenue growth for the full year is achievable,” it stated.

And Didata gave an upbeat assessment of its health as the expected October date for its £2.1bn acquisition by NTT looms.

“Dimension Data is positive about the group’s short- and medium-term prospects,” it said. “It continues to see evidence that its value proposition provides competitive differentiation in the marketplace, and believes that successful progression of its services strategy will provide further differentiation and growth.”