Dimension Data achieved a profit of $1.37 million for the six months to end-March, compared with a year-earlier loss of $194.85 million.
On a sequential basis, a profit of $1.55 million (before goodwill amortisation of $0.2 million) compares with a loss of $28.76 million for the preceding six months to September 2003.
Total turnover increased from $1.01 billion to $1.18 billion while earnings per share of 0.1 US cents compares with a previous loss of 14.5 US cents. Turnover for the second half of last year was $1.09 billion.
"We have made significant progress in a number of areas over the past six months," says CEO Brett Dawson. "We are pleased to report good revenue growth, a return to profitability and strong turnarounds in the US, Germany, France and SA."
Chairman Jeremy Ord says the benefits of the group`s growth strategies, solutions investment, rationalisations and management changes of the past 18 months have coincided with an upturn in market conditions.
"As outlined at year-end, opportunities in our sector of the market have improved and more activity on a regional and global level is evident. Good revenue growth was achieved despite the closing, selling and realignment of certain businesses."
However, Ord says operations in China are still a concern and the group is engaged in a concerted restructuring of its business model in the region.
Dawson says although the competitive environment remains tough, the combination of improved demand for IT services, greater external focus and better executing should continue to drive the group`s performance forward in the second half of the financial year.
"We will continue to focus on profitable growth, margin stabilisation, cost controls and making further progress in improving returns in underperforming regions."
The Dimension Data share price was up 10c or 2.38% in early trade on the JSE this morning.
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