Computerlinks posts strong growth

News Will Garside Nov 05, 2012

Revenues grow 26 percent as profitability remains stable

Distributor Computerlinks has announced a 26 percent increase in revenue in the first nine months of the 2012 fiscal year, rising from €519m to €653m compared to the same period in 2011.

The distributor launched into several new regions in 2012 including India, Pakistan and the Middle East as well as strengthening its Next Generation Data Centre portfolio, despite losing Juniper as a vendor back in August.

“We set out about five years ago to make service more of our business,” explains Mark Norman, MD for UK and Ireland, and COO of Computerlinks AG, who describes the results as evidence of the “substantial” growth in services revenue. Although the distie won’t break out services revenue, Norman points out that it’s not just its ALVEA cloud business but areas like installation, support and even penetration testing services that have helped fuel growth.

The COO stresses that although cloud services revenue is increasing, the rate of adoption has been highly variable, especially within EMEA as cultural and regulatory issues stymie growth. “We can't bet the business on it yet,” he quips. The distie had no major CAPEX charges or significant rise in head count of its 600 staff; a benefit that is in part due to a bespoke Navision-based ERP system that has been deployed extensively across the group during 2012.

With several key rivals posting either single digit or flat growth, Norman is “bullish” about 2013. “We are doing our forecasts now and we expect 10 to 15 percent growth [in 2013] but this is not confirmed,” he adds.

The UK MD is also forecasting a continued period of consolidation for disties, vendors and partners in what promises to be “a challenging year”. In response, he believes that Computerlinks will continue its strategy to help channel partners with extended business services around deal and customer analyses to help drivers drive extra revenue and profitability. Although “customer service will also remain high priority,” he adds.

Image: Shutterstock

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