Datacom reports sharp profit drop for FY22

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Datacom reports sharp profit drop for FY22
Greg Davidson of Datacom.

New Zealand's largest technology company Datacom has reported a profit of $28 million for the March 31 2022 financial year, on revenue of $1.45 billion.

This represents a 20 per cent drop in profit from the full year 2021, despite revenue increasing slightly from $1.41 billion.

Datacom said the $7 million lower net profit after tax figure was due to employees being allowed to hold on to and carry over annual leave, a decision the company took to ensure the wellbeing of its staff.

Border closures due to the COVID-19 pandemic limiting staff ability to travel also contributed to the lower profit figure, Datacom said.

Chief executive of Datacom Group Greg Davison said he was grateful to the company's shareholders for supporting the management decision to allow employees to accrue leave.

"While this has impacted our profit, it has enabled us to live up to our value of putting the wellbeing of our people first,” Davidson said.

Davidson added that over the past few years it has become increasingly evident what a critical role technology plays, not just to keep customers connected and secure, but also to help the tech company's customers to provide a more human-centric approach for their employees and communities.

He added that the pipeline of Datacom’s six business areas, right across the breadth of is services and products businesses is the largest it has ever been.

Datacom has not escaped the global supply-chain malaise with some lead times blowing out to 300 days or more, but believes the effect of this will be minor.

"The reselling of third-party product is just one of these businesses and while there are certainly supply chain issues, it is a relatively low margin part of the business so this isn’t necessarily going to impact our pipeline," a Datacom spokesperson told CRN NZ.

Datacom said it has a strong operating cash flow of $114 million.

The company had a total of 6801 employees at the group level as of March 31 this year, in 26 locations around New Zealand, Australia, the United States, Malaysia and the Philippines, up from 6539 the year before.

In New Zealand, Datacom employes 3509 people, up from 3134 in 2021.

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© CRN New Zealand

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