Mixed results for channel players

The winners and losers ...

Several major channel players have posted increases in turnover, despite growing fears that the world economy is falling into recession.

Security vendor Check Point Software posted a 99 per cent increase in second-quarter (Q2) profit, reporting $86.8m for the period ended 30 June, compared with $43.6m the previous year. Turnover for the quarter stood at $142.1m, a 57 per cent increase on last year's $90.6m.

Ebusiness software vendor PeopleSoft revealed "record" Q2 results, with a 27 per cent increase in turnover to $533m. Profit rose by 188 per cent to $46m, compared with $16m the previous year.

UK-based chip developer ARM Holdings also bucked the trend, seeing a 56 per cent increase in turnover to £36m, compared with £23.1m the year before. Pre-tax profit rose by 46 per cent to £12.2m, compared with last year's £8.3m.

Warren East, chief operating officer at ARM, said: "We are very pleased with our progress in the first half of what has clearly been a difficult year for the technology sector."

Peripheral manufacturer Logitech posted a 26 per cent Q1 growth for the period ended 30 June. Turnover was $177.9m, compared with the previous year's $141.4m. Profit rose to $6.3m, compared with $5m last year.

However, some of the biggest channel players appeared to be suffering from the slowdown.

Systems and services giant Compaq posted a turnover of $8.5bn, compared with $10.1bn a year ago, and the firm saw profit drop to $67m, compared with $388m in the same period last year.

Software vendor Computer Associates posted a loss for its Q1 ended 30 June. Turnover was $713m compared with $1.1bn for last year, and the company reported a loss of $342m, compared with a $24m profit the previous year.

Security software giant Symantec blamed "weak spending" and "negative foreign currency" for its fall in profit, from $47.7m in June last year to $33.9m this year. Turnover rose to $228m, compared with $225.4m last year. The figures include results of operations from the acquisition of Axent Technologies.