Tag: Proact

Proact claims that delivery delays are behind a dramatic decline in its Systems sales in the UK.

The outfit claims that chip shortages continue to affect the business on a pan-European level and its UK revenues tumbled by 19 per cent year on year.

The decline was driven by a 42 percent year-on-year drop in so-called “System” revenues, which Proact claims were a result of delivery delays linked to ongoing chip shortages.

Adjusted EBITDA for its UK business also saw steep declines, falling 73 percent as a result of lower System sales.

Services revenues fared substantially better, with UK sales up eight percent during the fourth quarter with support revenue growing by eight per cent and cloud services revenue growing by five per cent. Read more…

Proact has warned that delivery delays due to component shortages are expected to impact its fourth quarter revenues and results.

The outfit said it has seen strong demand for its systems solutions as well as its services so far during the fourth quarter.

However, it warned the global semiconductor shortage is contributing to significant delivery delays at several of Proact’s largest suppliers, which is expected to result in systems deals worth an estimated €14- €24 million will not be able to be delivered during the fourth quarter.

Proact added that despite the good order intake, revenues are expected to be negatively impacted by the corresponding amount. Read more…

European storage VAR Proact saw revenues and profits fall across all regions except the UK in H1 results

The VAR blames declining revenues and profits on longer sales cycles and ongoing chip shortages.

Proact is a Stockholm-based Dell, NetApp and Pure Storage partner and it says it suffered a three percent drop in group revenues for its six months ending 30 June to £147.97 million, while EBITA fell by 11 percent.

UK revenues bucked the trend and grew by 34 percent during the first six months of the year, while profits grew by 24 percent. Read more…

Storage outfit Proact saw a 13 percent fall in quarterly revenues after it brought in a new accounting standard.

Proact has changed the way it recognises revenues from supplier guarantees and maintenance and now spreads the revenues and costs over three years.

The move left an £8 million ding in its Q1 revenues. Its revenues for the three months from January to March 2018 tumbled by 13 percent year on year.

It did improve the costs of goods and services Proact sold during the quarter with pre-tax profit rising by four percent.

Proact is currently seeking a new CEO, following the resignation of Jason Clark in February. The company claims to manage over 100 petabytes of information in the cloud and have 3,500 customers.