Proact warns that €24m-worth of systems deals won't be delivered in Q4 due to component shortages
The Swedish partner admitted supply chain issues will have a short-term impact on its results
Proact has said that delivery delays due to component shortages are expected to impact its fourth quarter revenues and results.
The European partner, which is ranked #89 in CRN's Top VARs with £49.1m revenue, said it has seen a strong demand for its systems solutions as well as its services so far during Q4.
However, it warned the global semiconductor shortage is contributing to significant delivery delays at several of Proact's largest suppliers, which is expected to result in systems deals worth an estimated SEK 150m - 250m (€14m - €24m) will not be able to be delivered during the fourth quarter.
Proact added that despite the good order intake, revenues are expected to be negatively impacted by the corresponding amount.
"There has been a fast change in the supply chain during this quarter, which will have a short-term impact on our results," said Proact CEO Jonas Hasselberg.
"However, as a leading IT partner in Europe, we have a very good relationship with our suppliers, which gives Proact's customers the highest possible priority."
The Nordics systems integrator said the delivery situation is expected to be uncertain during the start of 2022 as the semiconductor shortages continue.
However, the company claims it does not see any indications of further deterioration of the delivery times and will enter next year with a good order backlog.
The Stockholm-based VAR claimed its third quarter of 2021 generated the strongest Q3 EBITA result in the company's history.
Adjusted EBITA for the quarter amounted to SEK 59.8m (€5.9m), representing an 11 per cent year on year rise.
The group added high gross margins and a high proportion of services resulted in a strong increase in profit compared to last year, despite somewhat lower revenues.
Revenues for the quarter dipped slightly by one per cent to SEK 810m (€80.8m).
While EBIT climbed double-digits by 15 per cent to SEK 52.9m (€5.2m).