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DiData revenue hits $5.8bn

Dimension Data has announced that it has reached a revenue of $5.8 billion at the end of September. This is a 14.8% increase from the same period last year.

Dimension Data today announced a strong set of results for the year ended September 2011 with revenue increasing 14.8% to reach US$ 5.79 billion from US$ 4.74 billion in 2010, and double digit operating profit growth of 10.8%.

Dimension Data’s System’s Integration (SI) business, which makes up 78% of total revenue, continues to be the main thrust behind the Group’s success, recorded total revenues of US$ 4.5 billion and a 12.8% growth year-on-year with an operating profit of US$ 202.7 million – up 7% on FY10. By region, Europe, Asia and Australia delivered good growth, while MEA was steady. In the Americas, Canada, Mexico and Chile recorded excellent growth, with operating profit in the USA flat year on year.

In the Group’s other businesses, Internet Solutions (IS) grew revenue by 6.9%: Plessey lifted revenue by 22.9% and Express Data’s revenues expanded by 24.3%, with Merchants and Learning Solutions delivering strong contributions.

Internet Solutions grew operating profit by 9.1% at an operating margin of 12.6%, supported by an ongoing capital expenditure programme. Operating profit in Express Data declined by 5.6% for the year reflecting product margin pressures while Plessey’s operating profit improved substantially off a low base in FY2010.

Services revenues in the Group’s SI business were up 17.7%, supported by solid Managed Services and Professional Services. While Managed Services was consistent throughout the period, Professional Services growth slowed in the second half, in line with lower Product growth.

Gross margin was 21.8%, slightly lower (0.4%) than 2010. This was mainly the result of lower Managed Services margins, while Product and Professional Services margins were stable.

Product revenues expanded 12.8%, with a weaker performance in the second half, in an environment where clients were holding back on major new technology projects.

Double Digit Growth

Commenting on the Group’s overall performance, Brett Dawson, Dimension Data’s CEO 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’s 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.‚

This year, the Group also continued to build on its substantial Annual Services Contract Value, with growth of 13.0% over the previous year. ‚This gives us tremendous confidence knowing that we are providing value to our clients and that they trust our ability to deliver. Over the next 12 months, we will accelerate our multi-vendor, multi-geography, and pro-active services, specifically Managed Services and IT Outsourcing,‚ explained Dawson.

Dimension Data continues to be perfectly positioned to meet clients’ network integration requirements. ‚The network remains the integral, mission critical platform not only for core business processes, but for all forms of IT and communications. And as clients start to exploit new technologies such as data centre networking, performance optimisation, and wireless to enable their networks to act as a true platform for business, our portfolio of assessment services will help them determine their roadmaps and architectures.‚

Riding the Cloud into 2012

In the next 12 months, the Group will focus on building its Cloud Solutions and Services portfolio and global cloud infrastructure and platform. ‚The Group’s acquisition of OpSource in July, and the formation of our Cloud Business Unit were critical steps in accelerating our cloud computing strategy. We are on track to go-to-market with our cloud value proposition which includes a world leading architecture and set of innovative solutions and services.

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

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