Mustek, which this morning said interim revenue was nudging the R2 billion mark, aims to increase the number of units it sells, as this is a performance driver.
The company, in a statement to shareholders, says it sees "significant growth opportunities" in the education, health and security industries, as well as the solar energy space. It reported revenue of R1.98 billion in the six months to December, up from last year's R1.8 billion.
In its results commentary, it says its gross profit margin from continuing operations increased from 13.2% to 14.1%, after a declining trend in recent years. Its revenue increase was supported mainly by the growth in the Acer, Lenovo and Asus product ranges.
CEO David Kan has said that, historically, the group's second half is better than the first six months of the year.
For the six months to December 2012, the group reported headline earnings per share of 31.75c. In that period, revenue from continuing operations gained 10%, mostly supported by the addition of the Acer and Lenovo product ranges.
Mustek is also starting to see some success in its Huawei Enterprise Solutions, Security and Green Energy products and expects growing contributions to both revenue and profit in the future, it adds.
JSE-listed Mustek says it has been catching up in the tablet space, a growth area from which it was initially excluded, it says. The company does not explain why it was at first left out of the tablet area. "Mustek is becoming a key player in the local tablet market. Over the next few years, this is likely to be a positive revenue driver."
The hardware distributor adds, based on customer interactions, it expects the desktop to transition into different formats based on evolving market trends and customer requirements.
Mustek says a manifestation of this is the "all-in-one" format, which is proving popular in the banking and public sector markets due to its lower total cost of ownership and security benefits for the large percentage of desk-bound employees in these environments.
It is also continuing with its research and development into new product offerings that have potential markets and growth, it says.
Last December, Mustek agreed to buy a 26% stake in Sizwe Africa IT Group, a former ConvergeNet subsidiary, for R15.2 million.
Share