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The New Zealand arm of Nasdaq-listed ICT supplier Insight Enterprises thrived in 2019, with sales increasing by around 25 per cent.
Sales of $19.8 million in 2018 surged to $24.9 million in 2019 while gross profit lifted from $5.5 million to $7.8 million.
Net profit after tax was also well up at $1.9 million from $1.3 million.
Insight focuses on four areas: supply chain optimisation, cloud and data centre transformation, connected workforce, and digital innovation and is a partner of brands including Microsoft, VMware, Citrix, HP and Lenovo among others.
Software revenue lifted to $16.2 million from $12.7 million while services revenue grew from $5.4 million to $7.8 million.
Hardware sales, however, declined from $1.7 million to $0.9 million.
Despite the surge in sales, Insight Enterprises NZ's net cash flows from operations fell as trade and other receivables increased from $7.7 million to $12.8 million.
The company adopted new international financial reporting standards during the year which may have affected the timing of sales bookings and year-on-year comparisons.
Salaries and wages expenses were up from $1.2 million to $1.7 million.
Insight Enterprises has been approached for comment.
Last year, Reseller News reported Insight Enterprises' local growth had stalled over the previous two financial years.
The company's $19.8 million in sales then were up from $18.4 million in 2017 and $18.6 million the year before.
Country manager Dean Graham said at the time that Microsoft had shifted its focus from invoiced revenue to consumed revenue particularly around Azure, meaning they were not providing incentives for big up-front commitments.
"Therefore most of our Azure clients let their agreements drift into the pay as you go model where we are charged quarterly and invoice in turn," Graham explained.
Graham said the focus for the NZ business had been around our license optimisation services and managed software asset management services but it was also in the process of launching Insight's digital innovation/cloud and infrastructure/data and AI practice.
