Dicker Data has grown sales by 121.8 percent in the six months to December 2014, to hit $498.3 million of revenue, thanks to the acquisition of Express Data.
Before the $65.5 million buyout of rival Express Data in early 2014, Dicker Data's half-year sales were $224.5 million – less than half its current revenue.
In the latest period, the amalgamated distributor grew its gross profit to $45 million, a gross margin of 9 percent.
Dicker's pre-tax profit also rose, up 20.2 percent to $6.3 million, but net profit fell by 55.5 percent to just $2.3 million.
The distributor forked out significant additional costs related to the merger, including increases in salaries, redundancies and rent over the transition period, that squeezed its bottom line.
Speaking to CRN this morning, company founder David Dicker said that while the integration "probably cost a bit more than we thought and took a bit longer", it was now done and he added that it had been better handled than many other mergers in the channel.
Key vendors HP and Cisco drove the lion's share of revenue. HP was worth $139 million for the half year, while Cisco – which Dicker added via the Express Data buyout – was a major component in the additional $246 million of sales that Dicker saw from newly acquired vendors.
David Dicker revealed that HP and Cisco were now roughly "level-pegging" in terms of revenue, with HP just slightly ahead.
Back in early 2014, when CEO David Dicker spoke to CRN about the buyout, he revealed that the crossover of vendors between Dicker and Express was just 3 percent.
Competition in core market
As Australia's best-known HP distributor, Dicker Data "still maintains top distribution market share of HP product" - however, this is an increasingly competitive space.
In the report, Dicker Data blamed HP's appointment of "another major distributor" for a $3 million decline in its HP server and storage business. HP awarded Synnex access to this portfolio in August 2014.
It is also expected that Dicker Data will see increased pressure in the HP arena from another rival distie; in January, Dicker Data's former commercial director, Chris Price, joined Ingram Micro as general manager of the HP business.
Dicker Data has continued to expand its line-up of tier one vendors, with Microsoft contributing $38 million in revenue in the half year, which was $27 million more than in the previous comparable period.
But Dicker Data has also been the victim of changes in its vendor range. The withdrawal of Sony and Samsung from the PC market hurt Dicker, and the distie also bid farewell to Adobe and Apple in 2014.
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