Dual-listed Datatec is on track to meet its full-year forecast of revenue of between $3.7 billion and $4 billion.
However, at the half-year stage, the company's earnings and headline earnings per share are lower than the previous year.
Datatec says earnings per share and headline earnings per share for the half year to August should be four US cents and five US cents a share, respectively. A year ago, earnings and headline earnings per share were 17.6c.
Underlying earnings per share are expected to be between 11c and 12c, compared with 10c for the six months to February and 22c for the six months to August 2008.
Underlying earnings per share strips out goodwill and intangibles impairment, amortisation of intangible fixed assets, profit or loss on sale of assets and businesses, fair value movements on put and call options, and unrealised foreign exchange movements.
Despite lower earnings, the company is confident of meeting its full-year targets, it notes. Datatec says underlying earnings per share should be 29 US cents at year-end, and earnings and headline earnings per share of about 23 US cents.
It says that it generated about $1.8 billion in the first half of the year, and gross margins are stable. “The strong cash generation experienced during the previous financial year has continued during the period.”
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