Reseller News

Dicker Data NZ's sales slump after loss of Cisco

Net profit after tax was slashed from $2.6 million to $546,302
David Dicker (Dicker Data)

David Dicker (Dicker Data)

Dicker Data NZ has reported 2018 sales well down on 2017 after it lost its Cisco distributorship.

The company reported sales of $90.2 million on 2018, down 36 per cent from $140.7 million in 2017. Net profit after tax was slashed from $2.6 million to $546,302.

David Dicker, chairman and CEO of Dicker Data, told Reseller News 2018 was Dicker Data NZ’s first full financial year of trading following the conclusion of the company's partnership with Cisco in that market. 

"Consequently, there was an impact on both the revenue and profitability of the NZ operation," he said. 

Dicker Data has since restructured its local teams and forged several new significant partnerships, however.

"I’m pleased to report that in the first quarter of 2019 our New Zealand operation has delivered double digit year on year growth. We are committed to the New Zealand market and have a positive outlook for 2019."

Despite the NZ slump, Australian-listed Dicker Data in February reported higher than expected 14.4 per cent growth overall in 2018. At the that time it estimated its NZ revenue for the year would be $93.5 million. 

Dicker Data lost the major distributorship of Cisco in late 2017 after Cisco consolidated from three distributors (Ingram Micro, Dicker Data and Comstor) to just one: Comstor.

Spark-owned distributor Telegistics then picked up distribution for Cisco as a result of a trademark dispute between Cisco and Spark over the use of the term "Spark" in some of Cisco's communications products.

Telegistics also won sole distribution for those Cisco collaboration products. Earlier this year that decision was changed and Comstor now also distributes Cisco's collaboration products, which have now dropped the "Spark" brand globally.

The Cisco distribution loss appears to have hurt Ingram Micro much less than Dicker. Ingram Micro this week reported increased New Zealand sales for 2018.