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Johannesburg - Datacraft Asia - a unit of the South Africa-based IT group Dimension Data (Didata, DDT) - has delivered a 7% increase in revenue for the first quarter ended December to US$128.7m, it said on Friday.
Pre-tax profit was up 39% to $8.5m, while profit attributable to shareholders leaped a massive 47% to $6.2m and cash and short term investments rose 16% to $147.9m.
The group attributed the strong growth in revenue to a 13% increase in services revenue to $48.1m and a 3% rise in hardware revenue to $80.6m.
However, when compared to the fourth quarter of the 2006 financial year - traditionally a strong quarter for the group - revenue declined by 2% to $2.2m, the group said.
In the 2006 financial year, the Singapore-listed Datacraft Asia boosted its parent company's revenues by 15.7%.
"I am pleased to kick off the new fiscal year with a strong 13% growth in our services business and a gross margin of 19.2% in Q1. We also ended the quarter with the highest backlog in five years at $156m, boosted by growth in annuity service contracts as well as hardware orders.
Clearly, our strategy of focusing on more profitable, services-attached business and emphasis on productivity has paid off," said Bill Padfield, CEO of Datacraft.
Going forward, Padfield said that the second quarter outlook remained positive underpinned by a healthy backlog, although overall gross margin might moderate due to the increase in hardware backlog.
"The prevailing market trends look favourable and demand for our solutions and services remains healthy, particularly in the areas of IP convergence and multi-sourcing. Our priority in FY2007 is to continue to drive services opportunities and build on our solid fundamentals by continuing to execute well," he added.