InTechnology bucks sector downturn

Other players report less promising financials

Storage company InTechnology has reported strong financial results for its maiden year, but figures elsewhere in the sector were less promising.

The company, which was formed from the merger of storage distributor Storm and VDATA, reported a turnover for the 35 weeks to March 2001 of £122m. On a pro forma basis, the company said it would have reported a full-year turnover of £169.4m, compared with £102m posted by the companies last year. Profit before tax and interest was £5.3m, £6.5m on a pro forma basis.

Marketing director Phil Wade cited the company's route to market as its "bread and butter". "Other companies use the channel, and go direct, but all of our offerings, from our storage data division to our online data services, are focused around the channel," he said.

Although InTechnology's core turnover is derived from its data storage division, Wade said the company is focusing on the storage utility model and its flagship Vbak product.

InTechnology signed an agreement with Compaq last month making Compaq the exclusive distributor of the back-up and restore online product.

Wade said that the firm was trying hard to convince the channel of its business model. "Some channel players still see it as selling boxes and adding a few services if necessary, but we see it as becoming much more services based, and firms that don't, won't survive," he warned.