Insight Q3 sales and profits rise by double digits

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Insight Q3 sales and profits rise by double digits

Microscope contributor

Insight Enterprises beat analyst expectations as profits grew double digits in its third quarter despite a currency headwind in Europe.

Strong demand for hardware and software helped sales grow 21% to $1.2bn (£742m) and profits rebounded 98% to $14.4m (£8.9m) compared to a year ago, representing 31 cents per share returns as opposed to forecasts of 23 cents.

Ken Lamneck, CEO at Insight, noted "continued strong demand for IT products and improved execution".

Sales in North America went up 27% to $871m including a leap in hardware and software revenues of 34% and 25% respectively, but services declined 14%.

In the region, Insight recorded $199,000 of severance pay compared to $4.5m a year ago after it fired former CEO Rich Fennessey.

The EMEA operation grew 8% in US dollars to $268m, but excluding the impact of foreign exchange rate movement sales climbed 16%. It paid out $99,000 in severance and restructuring charges, down from $463,000 last year.

Sales of hardware in EMEA grew 1%, software rose 12% and services 33% but excluding the currency issue, hardware and software revenues increased 7% and 22% respectively while services were up 44%.

The relatively small scale business in Asia Pacific filed sales of $33.2m, down 6% year-on-year or 13% excluding the impact of currency translations.

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