Insight Enterprises will make EMEA the focus of urgent action to improve its performance after the regional business plunged to a third quarter operating loss of $3.8m (£2.4m).
Overall, net worldwide sales were down 3% to $1.15bn and net profit was down 22% year-on-year to $15m, with EMEA turning in sales of $263.6m, down 5% compared to the same period last year.
The one bright spot in EMEA was Insight’s services business, which turned in 33% revenue growth. However, given services accounted for just 3% of its business clearly this was not even remotely enough to offset net year-on-year declines of 4% and 7% on hardware and software, respectively.
Regional severance and restructuring costs of $1.9m, up on the same period last year, did not help matters.
While the EMEA theatre was not solely to blame for Insight’s bad quarter, with declines in APAC much stronger, given the comparative sizes of Insight’s business in the two regions, president and CEO Ken Lamneck was quick to point the finger.
“We are disappointed in the financial results of our EMEA segment and are highly focused on improving our performance in this segment over the coming quarters,” he said, noting that Insight’s focus on improving execution and profitability in the North American theatre was paying off.
Having formally announced the appointment of ex-Microsoft staffer Wolfgang Lebermann as its new EMEA president earlier this week, Insight will not doubt be hoping their new man hits the ground running.