Dicker Data is on track to exceed AU$1 billion in revenue for the year, after recording stronger than expected Q1 results.
Revenue for the quarter was AU$263 million, 17% higher than projected. The company, which acquired Express Data on April 01, 2014, is averaging monthly sales of almost $100 million for the first six months of the combined entity.
“With such a strong start on the revenue side we are confident we will exceed $1 billion for this year,” David Dicker, Dicker Data chairman and CEO, told the ASX.
Dicker says the company has exceeded its projections for the quarter, with operating profit 48% ahead of projections, while net profit after integration costs was 6% higher than projected.
The integration of Express Data into Dicker Data ‘is basically complete and the company is operating well, as is our new management team,” Dicker adds.
He says traditionally the second half of the financial year is stronger for the distributor.
“And as each month goes by, costs from the integration drop off and synergies add to performance, so I am very confident that we are on track to reach the full year results provided in our guidance.”
In FY2014 the company posted an overall sales revenue of AU$662.76 million, up 46.8% on 2013, with net profit after tax dropping from $9.2 million to $5.2 million on the back of the acquisition costs.
Express Data New Zealand contributed more than $35 million in revenue for its new owner in FY2014, despite the acquisition only taking place three months prior to the end of financial year.
Dicker Data’s financials for the year to June 30, 2014, showed sales of goods of $35,370,000 and interest revenue of $96,000 for New Zealand. Profit after income tax was $676,000.
No New Zealand details were revealed in the latest announcement.