Laurence Baynham (Data#3)
Publicly listed IT services provider Data#3 has told shareholders that around $3 million of potential profit has been tied up in back orders for product deliveries delayed by the ongoing global chip shortage.
The company told shareholders on 19 July that its unaudited consolidated net profit before tax for the 2021 financial year to be $36.8 million, an increase of 8 per cent on the prior year.
The profit increase comes despite a 2021 financial year impacted by product delivery delays in the second half of the financial year, the company said, related to the global computer chip shortage being experienced across the industry.
“These supply constraints have coincided with the spike in demand for devices traditionally experienced during the fourth quarter, resulting in a larger than usual product backorder at year-end,” Data#3 told shareholders.
“The profit associated with this backorder is approximately $3 million, which will be realised in FY22. Supply constraints for various product sets are expected to continue in FY22,” it said.
Data#3 plans to announce its audited full-year results on 19 August 2021.
In February, Data#3 revealed that, despite the challenging market conditions in the six months to December 2020, it had continued producing record results with revenue up 19.2 per cent to $856.7 million and net profit rising 7.9 per cent to $9.4 million.
In April, Data#3 told shareholders it had been engaged to deliver a Cisco-based networking solution for the new Sydney Football Stadium.
Bringing together consulting, technical expertise, industry partnerships and Cisco’s technology, the networking solution forms part of an overall $828 million-dollar redevelopment project to create the state-of-the-art stadium, playing host to 42,500 patrons.
“We know it’s an incredible responsibility to enable such services, but we know we’ve got the expertise to deliver a superior solution,” Data#3 NSW and ACT general manager Paul Crouch said at the time.
“We can't wait to see the results of our hard work as memorable sporting events are brought to life in Sydney.”
