Tag: CDW

CDW has had a miserable third quarter. Not only was it hacked by an aggressive ransomware outfit it also saw net sales for the period amounting to £4.61 billion globally.

This figure was a 9.4 per cent decrease compared to $6.2 billion in the third quarter of 2022.

The IT giant’s UK and Canadian operations reported combined net sales of $601 million, a 15.4 per cent decrease compared to 2022.

Most of the problems were poor sales in the corporate and small business segments as businesses faced economic uncertainties.

Gross profit in the third quarter of 2023 stood at $1.2 billion, representing a slight decrease of 0.4 per cent compared to the 1.2 per cent reported for the third quarter of 2022. Read more…

IT solution provider CDW appears to be laying off hundreds of employees after the company warned that its first fiscal quarter 2023 revenue would fall below expectations.

The Illinois-based group expects first-quarter net sales of about $5.1 billion, well below analyst consensus estimates of $5.28 billion and significantly lower than the $5.95 billion in revenue the company reported for its fiscal first quarter 2022.

The outfit has 15,100 employees and several of them have complained on social media that they have been let go. The firm is offering a severance package, but laid-off employees are signing non-disclosure agreements.

One area hit by the layoffs is the field services unit which had some redundancies after CDW’s blockbuster $2.5bn acquisition of Sirius, the employee said.

Posts suggest that about a 1,000 employees are being laid off across the company with more coming.

CDW has reported its best ever second quarter with the business unit holding its UK arm seeing revenue almost triple.

CDW saw global sales increase 7.6 percent to $4.9 billion and its net income rose 22.8 percent to $173 million.

Its UK division, which is part of its Canadan operation (presumably because it has the same Queen), saw revenue rocket 34 percent to $487 million.

CDW chief revenue officer Christine Leahy said: “Once again, UK results came in above expectations. UK had excellent results across both transactions and solutions.

“Despite looming Brexit decisions, the team continues to execute well in market.

“They are also doing a great job leveraging our international capabilities to grow outside the UK, both with UK-based customers and US-based customers. US referral to the UK increased over 30 percent in the quarter compared with the prior year.”

Super-VAR CDW is reporting full-year revenues of $15.19 billion with sales from the UK and Canada – which it brackets together – rising by a combined 15 percent to $1.56 billion.

In its last results filed on Companies House (for 2016), CDW UK saw revenues hit £648.6 million

The NASDAQ-listed parent saw total 2017 revenues increase by 8.7 percent to $15.19 billion and net profit soar by 23.2 percent to $523 million.

CDW CEO Thomas Richards said: “As we have throughout the year, we delivered strong top-line growth with solid profitability in the fourth quarter, once again highlighting the combined power of our nimble business model, broad product portfolio and balanced customer end-markets.

“Our 2017 results continue to prove out the success of investments we’ve made in our three-part strategy.”