Datatec's product revenues for the year ended 28 February will be between 10% and 15% lower than the previous year, but the group has moved to a cash-positive position during the period.
A statement from the group reveals that product revenues have recently been following trends seen in many of the world`s major economies and have been tracking between 10% and 15% lower than for the same period last year.
However, it says services and consulting revenues have been less impacted by the current economic climate and some areas, such as annuity services revenues, have improved year-on-year.
The board expects earnings per share and headline earnings per share to be between 25 and 29 US cents per share, with underlying earnings per share expected to be between 31 and 35 US cents per share.
"The group has focused on improving its cash generation and therefore the board is particularly pleased that operating cash generation in the second half of the financial year has been very strong within Westcon, well ahead of the group's expectations," reads the statement.
"At the end of the financial year, Datatec moved to an overall net cash position from a previous net debt position."
Jens Montanana, CEO comments: "The group completed the year with improved working capital and a net cash position, following strong cash generation in the second half, illustrating both the defensive nature of our business model and the positive actions taken.
"We plan to pay the same level of capital distribution for the year just completed, reflecting confidence in our financial position, particularly when some parts of the group are performing with relative resilience in the downturn."
The group has also announced that Dean Douglas will become president and chief executive of Westcon Group on 1 April 2009.
Douglas joined Westcon Group as chief operating officer in June 2008 and has held senior executive roles at Motorola and IBM, as well as being chief executive of LCC International.