Fat order book best protection against downturn


Fat order book best protection against downturn

Microscope contributor

IT services providers have continued to report strong order books insulating them from the growing effects of the downturn, as Anglo-Dutch services outfit Logica and managed security services provider Integralis both filed their first half results.

Logica reported a slump in year-on-year first half operating profit after revealing a 34% drop to £29m, but though it acknowledged tough trading conditions during the downturn, it said the slide was down to an ongoing restructuring drive that aims to revitalise the firm's performance.

Across the group, sales were up 16% to £1.7bn, with the UK up 6% to £254m, driven by a stronger than expected order book in the public sector and commercial sectors.

Meanwhile, Reading-based Integralis reported the highest order backlog in its trading history after posting a massive 51% operating profit hike to €2.6m. First half revenue climbed 18% to €80.4m.

UK  managing director Graham Jones said the security market was robust in spite of worsening macroeconomic conditions, and predicted the market would expand by just under 10% this year. He added: “These results demonstrate the success of our strategic move to invest in and further develop our managed services operation.”

Storage vendor NetApp also weighed in with Q1 2009 results this morning. Revenue of $869m, up 26% year-on-year prompted CEO Dan Warmenhoven to take a similar view to his services counterparts.

"Customers have continued to expand and evolve their storage infrastructure and are looking to NetApp to help them reduce costs and enable new capabilities," he said.

However, the firm's GAAP net profit looked more shaky, down $4m to $34m on this time last year.

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