Bottom-line boost for Insight in Q3

Reseller titan increases operating profit, despite slight sales decline

Insight boosted its profitability in 2012's third quarter, despite the tough economic climate eating into its top line.

For the three months to the end of September, the resale giant saw global sales decline five per cent in dollar terms year on year to $1.2bn (£742m). But operating profit surged 10 per cent to $30.7m. The comparatively slight Asia-Pacific operation was the only geographic segment to post top-line growth, with sales up two per cent annually to $36m.

The EMEA region saw turnover decline four per cent to $276.6m. Hardware sales continue the strong upward curve they have been on throughout the year, growing 18 per cent annually in Q3. But software sales fell by the same amount, and services sales dropped one per cent.

Over the past year, Insight's software-hardware revenue percentage split in EMEA has gone from 61:37 to 52:46, with services remaining static at two per cent of total regional sales. The tilt towards tin has been fuelled in part by the acquisition in January of £100m German hardware reseller Inmac.

In Q3 2012 Insight's North American unit saw overall sales decline five per cent to $868.8m, with hardware, software and services all posting year-on-year declines.

Ken Lamneck, chief executive of the reseller, said: "During the third quarter, softer macroeconomic conditions continued to dampen our top-line results, but we focused on the profitability of our business and continued to control costs."