Dimension Data has reported a 23% increase in revenues for the year ended 30 September, with operating profit increasing by 55%.
Total revenues are up to $3.8-billion, while services revenue has increased 25,8% to $1.5-billion.
Operating profit has jumped 55% to $131-million, with the operating margin up 0.7% to 3.5%.
Earnings per share have increased by 180% to 5.6 cents and the company has proposed a dividend of 1.5 cents per share.
Cash generated from operating activities was $177.1-million, up from $12.5-million in 2006.
CEO Brett Dawson comments: "Our accomplishments in 2007 were achieved by successfully executing our business strategy and harnessing growth opportunities created by major changes in the market.
"The four components of our business strategy – driving profitable growth, offering a world class client experience, delivering operational excellence to our clients, and investing in our people and our culture – have propelled us forward. Our focus, coupled with strong execution across all geographies and client segments, resulted in exceptional growth and progress in our business.
"The cornerstone of our profitable growth strategy is to ensure we identify and then aggressively target growth opportunities in the market. Several years ago we identified a number of emerging market trends that we believed would be significant for the industry, our clients and our business. We summarised these trends into three main opportunities for Dimension Data. We refer to these opportunities as the converged network, the converged client and multisourcing.
"The converged network provides us the opportunity to exploit the convergence of multiple services including data, voice and video onto a common Internet Protocol (IP)-based technology platform. The converged client opportunity is about how we take advantage of the emerging trends of unified communications and collaboration, while multisourcing offers clients new flexibility in IT sourcing.
"We aligned our business strategy, investment strategy, competencies, and execution capabilities to capitalise on these market opportunities. Today, it is rewarding to look back on our consistent growth and the rapid market share gains we have made by focusing on these three opportunities. The record revenues and financial performance of 2007 continue to validate our strategic direction."
Dawson says Dimension Data has continued to convert the converged network opportunity, with several factors driving growth.
"The basic corporate communications network is in an investment cycle where a refresh of many of its foundation technologies such as routers and switches is occurring. The increasing adoption of IP as a standard is enabling our clients to drive standardisation of their IT architectures, and thus enable substantial consolidation and centralisation of their overall IT infrastructure, providing improved effectiveness and substantial ROI for their business. In addition, we see our clients preparing their infrastructure for convergence and embedding security into their IT infrastructure.
"Convergence of voice onto the data network has been driven by the increasing adoption of voice over IP (VOIP). We have over the past few years been positioning our business to secure this opportunity. The exceptional growth we have achieved in our Converged Communications line of business is clear evidence that the promise of the IP-based converged network is becoming a reality. The operational cost savings and productivity improvements of integrating voice, video and data onto one infrastructure are now leading our clients to large scale deployment of converged communications-related technologies – particularly IP telephony," he says.
"We are starting to see early evidence of success associated with clients adopting unified communication and collaboration technologies. Consumers are becoming more mobile and are increasingly demanding access to any application, using any device, from anywhere in the world to be more productive. They bring their personal productivity expectations into the workplace and create new requirements for the corporate IT infrastructure. Market experts refer to this trend as the ‘consumerisation of IT’. In order to provide end users with a seamless experience we are focused on providing our clients with services and solutions that enhance, integrate and optimise their network, operating systems and messaging infrastructures.
"While the converged network is in a growth phase, the converged client is still in an early phase of market adoption. Our business is focused on exploiting these opportunities.
Dimension Data made strong progress during 2007 in providing services to the public sector, says Dawson.
"In South Africa, we built an emergency and disaster response centre to support provincial response on a 24x7x365 basis. In Australia, we helped the government expand their capabilities to deliver emergency mental health services to residents in rural locations. Within a large city in the US, we enhanced the information-sharing capabilities of the criminal justice department to improve judicial service delivery to the citizenry.
"We believe strong investments in IT by governments across the globe will continue to provide opportunities for the group. Government’s pursuit to deliver innovative services, improve government accessibility, and gain cost efficiencies, requires a partner with diverse yet deep domain expertise across all aspects of IT infrastructure."