Dicker Data shares drop after lower first-half profit
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The news: Computer hardware and software distributor Dicker Data has posted a drop in first-half revenue and profit, sending its shares lower.
The numbers: Net profit for the six month June fell 5.7% to $35.44 million, while revenue was down 2.1% to $1.08 billion. The company will pay an interim dividend of 11 cents a share.
Dicker Data shares were down nearly 7% to $9.42 in early trading on the ASX.
The context: The company said the fall in performance came on the back of lower hardware and virtual services sales, although this was partly offset by a modest increase in software sales.
Its operating costs jumped 6.3% during the half year. The company is optimistic that second-half performance will be stronger than the first half, as it looks to leverage on its status as the Australian and New Zealand distributor for Microsoft’s Copilot artificial intelligence solutions, as well as a key NVIDIA distributor.
The source: ASX announcement
