ASX-listed distributor itX has revealed that Oracle's acquisition of Sun Microsystems had negatively impacted the distributor's sales this calendar year.
In a trading update released to the ASX Tuesday, itX said the acquisition had a "temporary" and "adverse" impact on trading.
"Following a strong first half result, the January to April period has presented our IT distribution businesses with a few challenges, principally in trading levels of Sun Microsystems products.
"The time taken to complete the transaction... caused some unforeseen and temporary interruptions to the normal channel supply mechanisms, which in turn had had an adverse affect on trading results," itX said in a statement.
Managing director Laurie Sellers said in the statement, itX "will draw on our extensive knowledge and experience to respond appropriately."
"ItX has managed challenging trading conditions in our IT distribution business many times before," he said.
Recent acquisitions web hosting company ICO and print and medical distributor Briell Marketing "performed strongly with increased profit contribution".
The final results for the full year to 30 June 2010 will be heavily influenced by the month of June, traditionally the strongest sales month of the year.
Meanwhile, itX has acquired the business assets of Sydmed, a distributor of medical devices in the field of urology, the treatment of urinary tract disorders.
ItX will make a cash payment of $3.2 million to buy Sydmed and will retain Sydmed's existing team, including founder Andrew Lloyd who will stay on as a consultant. ItX has appointed Len Bevis as national sales manager.
In an announcement to the ASX today ITX said Sydmed had a "profitable track record".
ItX managing director Laurie Sellers said the acquisition "provides an entity for itX into the very large and growing market for specialised medical devices".
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