Dicker Data slides in first half

Dicker Data has posted a 10.9 percent drop in net profit to $3.3 million for the first half of fisal 2013.

The company said, however, its second half is typically its best and expected to post record full year results.

Revenues for the six months were down 2.6 percent to $221.7 million, as the company moved away from high volume PC sales. 

DD said it was pleased with the result given the tough market conditions.

“While revenue was down this was still an exceptional result in a subdued market, when compared to the record growth experienced in the previous corresponding period," it said in a statement to the market.

DD said lower spending from the corporate and SMB market, as well as a delay in education spending, saw weaker demand for PCs which primarily impacted revenue from its HP PSG product line. 

It said the HP revenue decline was offset by growth in sales of rival vendor partners Lenovo, signed last June, and Asus and Buffalo. Dicker Data borrowed $20 million from Macquarie Bank this month to fund purchases from HP and potentially other vendor partners.

Dicker Data’s shares fell slightly to close at $0.81 yesterday.

The price hit a record high of $1.00 last Monday, amid revelations rival distributor Ingram Micro had been looking at Dicker Data as a potential acquisition target.

Since December last year, Dicker Data's market value has almost doubled to  $104.7 million.