Insight Enterprises Q2 numbers reflect improving IT demand

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Insight Enterprises Q2 numbers reflect improving IT demand

Microscope contributor

Insight Enterprises last night posted a bumper set of Q2 financials and upped its guidance for the year on the back of improving global demand for IT.

The US reseller recorded a 23% rise in sales to $1.3bn for the period ended 30 June, operating profits up 104% to $44.7m and net income of $26.9m, a rise of 109%.

"I'm happy to report that strengthening of IT demand globally coupled with improved execution and operating leverage led to a strong year-to-year growth in both sales and profitability in our business," said Insight boss Ken Lamneck.

Sales in North America grew 21% year-on-year to $866m including a 27% and 21% rise in hardware and software respectively while services fell 15% due largely to a client deal that did not re-occur.

Closer to home, EMEA revenues climbed 36% in constant currency to $359m as hardware sales went up 18%, overshadowed by 44% and 39% rises in software and services.

In a conference call with analysts, Stuart Fenton, EMEA and Asia Pacific boss at Insight, said public sector transactions were up in the quarter and described software growth as "pretty strong".

"We had an aggressive focus on winning new accounts in that mid-market space and we had a few good wins in the enterprise space.... those are fee based initiatives and so we'll continue that activity," he said.

The relatively smaller Asia Pacific operation recorded 14% growth in constant currency to $53m.

For the second half of the year, Insight has upped its EPS guidance from $1.05 to $1.15 to $1.30 to $1.40. This is based on continued demand for hardware across the pond offset by services sales declines.

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