Reseller counts the cost of US spending spree

Europe's largest networking reseller Dimension Data reported an overall loss of $1.2bn (£845m) for its 2001 financial year, after...

Europe's largest networking reseller Dimension Data reported an overall loss of $1.2bn (£845m) for its 2001 financial year, after exceptional items and write-downs were taken into account.

The reseller, which has cash revenues of £650m, reported an operating profit of £96.7m for the period and turnover of £1,735m - a 24% increase on the same period last year.

Jeremy Ord, Dimension Data's executive chairman, said 9% of the growth in turnover came from continuing operations. The remainder is the result of acquisitions.

Dimension Data's recent acquisitions in the US include Proxicom, TimeBridge, Premier and Matrix, together with several other businesses.

Ord warned that IT spending was unlikely to improve significantly in the current financial year, and that the prospects for future demand looked poor.

However, the company's cost-cutting measures - which included reducing its staff by 14% - had left Dimension Data "well placed strategically, financially and structurally to take advantage of the resumption in economic growth and IT expenditures", Ord said.

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