The Channel logo

News

By | Paul Kunert 3rd November 2011 16:19

Some signs of life detected in gov IT spend

But it's mid-market sales that cheer Insight in Q3

Insight Enterprises says the public sector is starting to show some signs of life again but it was the mid-market and services wins that fuelled modest growth in Q3.

The US-owned reseller giant recorded a 6 per cent year-on-year rise in sales to $1.24bn (£775m) for the three months ended 30 September, operating profits climbed 12 per cent to $27.9m (£17.4m) and net profits went up 19 per cent to $17.2m (£10.7m).

Talking to The Register, Insight president for EMEA and Asia Pacific Stuart Fenton said the market in general remained "challenging" but picked out cloud computing and the adoption of high-tech kit by mid-sized customers as the hot spots.

"We are seeing signs that bode well for the future," he said.

Following a big drop off in government biz across the channel in the last few quarters, Insight noted a slight recovery towards the end of Q3, leading to some optimism that the sector will "not be in continual decline".

Turnover in North America was up five per cent to $913.6m, with hardware and services up 7 per cent and 15 per cent respectively but software down 1 per cent. Operating profits were up 15 per cent to $24.6m

EMEA operations were up 2 per cent in constant currency to $289m, with hardware flat, software up 3 per cent and services growing 15 per cent. Operating profit in the region was up 22.7 per cent to $2.7m.

Fenton said the bottom line numbers were the results of "improved operational efficiency" as Insight upgrades to a fresh ERP platform and restructured operations.

"We are leveraging a lower cost locations versus higher cost locations for admin and operational staff this year and that is yielding results," he said.

In Asia Pacific, sales rose 3 per cent to $35.3m, but a 15 per cent rise in selling and admin expenses hit profits, which more than halved to $600,000. ®

comment icon Read 1 comment on this article alert Send corrections

Opinion

Lightning

Jack Clark

Just as Jeff Bezos did to books and CDs, Amazon's rivals are now doing to it
Microsoft CEO Satya Nadella
ARA_LIbertad

Chris Mellor

Elliott Management sinks its teeth into retiring godhead

Features

Failure to crack next-gen semiconductors threatens to set back humanity
SMEs get lip service - what they need is dinner at the Club
SAP Match Insights
Vorsprung durch grossendatatechnik, as we like to say in Germany
Inside the Google Lab where surgeons prepare the human/dog experiment
Big Blue exec tells El Reg what to keep an eye on