Insight hails XP-fuelled EMEA sales hike
But the region's software and services sales slump
The end of Windows XP support has given Insight's EMEA hardware business a leg-up in the first quarter, with its UK devices arm hailed as a standout performer.
For the three months to 31 March, Insight's global business saw net profit jump 27 per cent year on year to $11.6m (£6.87m) on net sales which rose three per cent to $1.2bn over the same period.
In EMEA, Q1 net sales reached $387.9m – which was flat compared to last year – but its hardware business flourished, growing seven per cent annually.
The growth was partly down to the end of XP prompting device refreshes, according to Insight's president Ken Lamneck.
"Clients have really gone more and more towards a more logical refresh cycle, but obviously Microsoft's support for XP going away in April certainly precipitated a lot of clients over the last few quarters to continue to do those refreshes in the more accelerated fashion," he said on an earnings call transcribed by Seeking Alpha.
He added that the XP effect could continue throughout the year.
"It's hard to tell how much is left in the pipe there. There certainly are numerous clients, of course, who have not completely converted [and] are in the process of doing that. So yes, I definitely would [say] we'll see that continuing for certainly the next few quarters."
Lamneck added that he was pleased with the progress he is seeing in the UK hardware business, which could prompt "further improvements in the earnings results in EMEA in the back half of 2014".
While Insight cheered its EMEA hardware sales, it was a different story for the region's software and services revenues which were down annually by three per cent and 13 per cent respectively.
The firm did not divulge specific profit or sales expectations for the rest of the year but said it is confident that the company will grow faster than the global IT market, which it claims is on track to enjoy low- to mid-single-digit growth over the coming months.