Menu
$25M impairment drives Dimension Data NZ to large loss

$25M impairment drives Dimension Data NZ to large loss

Impairment taken to reflect current values of businesses acquired in 2010

A sudden plunge in sales has taken Dimension Data NZ deeper into the red

A sudden plunge in sales has taken Dimension Data NZ deeper into the red

Dimension Data New Zealand's bottom line plunged deeper into the red in a shortened financial year, financial statements show.

The technology provider appears to have reported results for a six month period, from 1 October 2017 to 31 March 2018 to align its accounts with those of NTT.

The companies were merged last year to create a US$38 billion global giant with such a change of period meaning the year-on-year accounts are not strictly comparable.

However, one number does stand out: a $24.9 million impairment which a note to the company's accounts stated was made to better reflect the the value of businesses acquired in 2010.

Dimension Data rolled up the businesses of Datacraft, Logical CSI, Integral and Axon Computer Systems around that time. That impairment drove the company's bottom line $30.3 million into the red compared with an $8.3 million loss last year.

Reported New Zealand sales more than halved from $183.9 million in the full year 2017 to $81.2 million for the six months to 31 March.

However, results for the Australia region, reported separately, appear to mirror that, with US$1,008 million in revenue for the full year 2017 and US$462 million reported for the half year ended 31 March.

"We confirm that the reported loss of $NZ31 million is accurate," Dimension Data said in a brief statement.

"The majority of the losses were due to a one-time goodwill impairment write-off for an earlier acquisition in New Zealand. It has no direct impact on the cashflow of our business"


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags it servicesNew Zealanddimension datadatacraftannual resultfinancial statements

Featured

Slideshows

Reseller News launches alumnae breakfast for Women in ICT Awards

Reseller News launches alumnae breakfast for Women in ICT Awards

Reseller News hosted the first alumnae breakfast for the Women in ICT Awards in New Zealand, designed to showcase the leading female leaders in the industry. Held at The Cordis in Auckland, attendees came together to hear inspiring keynotes and panel discussions, alongside high-level networking among peers.

Reseller News launches alumnae breakfast for Women in ICT Awards
Reseller News Innovation Awards 2018: meet the top performing partners

Reseller News Innovation Awards 2018: meet the top performing partners

Reseller News honoured the industry’s finest on a standout evening for the New Zealand channel, recognising the achievements of established partners, emerging players and innovative start-ups, in front of over 460 technology leaders in Auckland.

Reseller News Innovation Awards 2018: meet the top performing partners
Show Comments