ISC Networks' profits have sunk in the face of the economic meltdown as it was caught out by falling sales and a relatively high cost base.
The Cambridgeshire-based HP and Microsoft Gold partner saw income in the year-ended 30 September 2009 collapse by 67% to £69,245 and a 6% dip in sales to £40.8m as customers continued to sweat their assets.
"The economic downturn has affected the rate of customer hardware replacement, which in turn has affected the level of repeat orders," said ISC boss Paul Gumbley, in a statement accompanying its financials.
However he added that the "focus on project and solutions based business is showing signs of success with order intake for the current period to date being ahead of the same period for the previous year."
Staffing levels during fiscal 2009 were largely flat on the previous year at 289 while administration expenses went up 7.2% to £14.7m.
ISC said it has cut the cost base late in the year, "This review was completed prior to the year-end leading to a substantially lower level of overheads for the current period of trading."
The results were reasonable given the difficult trading conditions said Eddie Pacey, director of European credit services at Bell Microproducts but he expected the reseller to return to better results in the current year.
"ISC appears to be addressing the cost base and has also been moving to increased managed services sales, so one might expect to see a gradual decline in revenues but a gradual upward movement in margins and operating profits," he said,
ISC was not available to comment further.