DiData delivers in FY11 results

Double-digit top- and bottom-line boost as integrator prepares for cloud assault next year

After posting double-digit revenue and profit growth in FY11, Dimension Data (DiData) is banking on its recently formed cloud division to deliver more impressive results next year.

For the 12 months to the end of September, the integrator saw global sales expand 14.8 per cent to $5.79bn (£3.7bn). While the firm has neglected to provide a group-wide operating profit figure, it claims the sum rose by 10.8 per cent, exclusive of exceptional charges relating to the company's acquisition by NTT.

Canada, Mexico and Chile were singled out as having delivered "excellent growth", while sales expansion in Europe, Asia and Australia was characterised as "good".

The firm's core systems integration (SI) business saw its top line expand 12.8 per cent on last year to $4.5bn, while operational profit rose seven per cent to $202.7m. Services revenue in this division rose 17.7 per cent, while kit sales grew 12.8 per cent.

Managed services sales growth was steady throughout the year, while products and professional services growth slowed somewhat during the year's second half. Across the SI unit gross margins dropped almost half a point to 21.8 per cent, with declining managed services margins blamed for the decline.

DiData chief executive Brett Dawson said: "Against the backdrop of a volatile global economy and tough trading conditions, this year's double-digit growth is an outstanding performance. In addition, our growth in managed services was particularly pleasing.

"We have built a strong foundation from which to generate growth. That is because we anticipated key market trends such as IP networking, unified communications, virtualisation and cloud, and moved early to provide our clients with the relevant solutions and services."

In FY12 DiData plans to turn its focus on growing its cloud portfolio. In July the integrator bought infrastructure-as-a-service player OpSource, using this as the foundation for its newly formed Cloud Business Unit.

"There is enormous value in what our heritage in systems integration brings to cloud, and I believe our expertise and skills are critical differentiators in the marketplace," said Dawson.

"The extension of our services expertise and capabilities, coupled with our ability to bring clients a cloud solution for every stage of their journey to cloud, will prove a true game-changer for Dimension Data."