$25M impairment drives Dimension Data NZ to large loss
- 31 October, 2018 07:30
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"