Insight lauds Q1 sales spike

Global giant sees a 43 per cent leap in net profit, as demand for IT continues to increase

Strengthening business demand for IT products helped Insight record an 18 per cent sales increase for its first-quarter 2011 financials.

The global VAR saw sales hit $1.2bn (£727m) for Q1, with net profit leaping 43 per cent to $13.1m.

Insight’s EMEA business saw a six per cent hike in sales to $337m, with hardware remaining "relatively consistent with Q1 2010", but software and services increasing 10 per cent and 26 per cent respectively. Included in the EMEA figure was $203,000 of severance and restructuring expenses, compared with $71,000 for Q1 2010.

Its North America figures saw net sales hit $847m, a 23 per cent rise from Q1 2010. Hardware, software and services sales increased 19 per cent, 33 per cent and 22 per cent respectively, adding weight to the continued economic recovery in the US. The US part of the business also recorded $321,000 of severance and restructuring charges during the quarter.

In APAC, Insight saw net sales increase 24 per cent to $35.9m. Gross profit increased 20 per cent to $5.8m.

Ken Lamneck, chief executive and president of Insight, said: “Our financial results in the first quarter reflect solid sales execution and continued strength in demand for IT products globally. As we move through the balance of 2011, we will be highly focused on organic growth in our portfolio while continuing our disciplined cost-management efforts.”