DiData squeezed by smaller market

Network integrator blames difficult sales for plunge into the red

Network integrator Dimension Data (DiData) blamed a shrunken market and difficult sales for its plunge into the red during an unaudited six-month period to 31 March 2003.

The South African firm reported a loss of $6.3m before exceptionals, goodwill and amortisation. The same period in 2002 saw unaudited profit of $3.5m before exceptionals.

"It's fair to say the market continues to be challenging and difficult," said Jeremy Ord, DiData's executive chairman.

"Perhaps this is an important time to reflect on the market, and for every company in this industry to say this is the market going forward, and adjust our businesses."

Ord added that he expects the market to remain the same size as it is now, and that DiData has "cut its cloth accordingly".

DiData indulged in an acquisition spree at the beginning of 2000. This was matched only by fellow South African channel firm Datatec, which owns the Logical, Comstor and Westcon integration and distribution companies.

DiData also recently expanded its relationship with Genesys, an Alcatel subsidiary.

Keith Yaxley, sales and marketing director at reseller Data2Hand, said: "The results are symptomatic of the market. DiData is a very acquisitive firm and built a market for itself, but unfortunately that market just isn't what it used to be."