A squeeze on margins on distributors of hardware has had a savage impact on profits of InterX Plc, the Surrey UK-based distributor of storage products. Net profit was down 77.7% to 1.3m pounds ($2.1m) though revenue, boosted by the company’s appointment as a Compaq distributor, climbed 38.2% to 318m pounds ($524.7m).
InterX has diversified with the launch of its IT Network, which enables professionals in the industry to compare products on the market. The company says it has already generated significant revenues and has the active co-operation of most of the major global IT manufacturers.
Feedback from customers suggests that there are opportunities for the IT network to launch into other geographical markets and implement an e-commerce, transaction-based revenue model. The board is currently reviewing the financial implications of these opportunities.
