After two profit warnings this year, earnings from Computerland UK Plc were widely expected to be disappointing. But at least the hammering the Nottingham, UK-based company has taken from the box-shifting side of its business – which has precipitated a slide in its share price from a peak of 360 pence to the current level of 75 pence – is accelerating its move into services.
In the six months to October 31, the company reported a net loss of 215,000 pounds, down from a profit of 350,000 pounds, on revenue that fell 32% to 13.1m pounds. While product sales have fallen sharply, revenue from services increased by 16% and chief executive Graham Gilbert is confident that Computerland can recapture some of the momentum that led to ten years of growth.
The company is preparing a plan fort NetCare, its remote server management business, to become an Application Service Provider (ASP), based on the Microsoft Exchange System.
