In line with its predictions, Basingstoke, UK memory distributor Datrontech Group Plc has reported a loss which it is putting down to a difficult trading market. The company saw its net profits for the six months to June 30 drop 10.0% to 2.2m pounds on revenue that rose 33.0% to 125.8m pounds, and says the third quarter hasn’t shown any sign of improvement. Datrontech is describing its performance for the interim as credible in light of market conditions, and says that it is expecting business to pick up in the fourth quarter which is traditionally the company’s most profitable period. The poor conditions have apparently been caused by an excess of inventory which had built up during the first quarter, which worked its way through the channel and into the second quarter, reducing demand in a period that saw aggressive competition. But Datrontech has been busy throughout the half consolidating its UK operation at new headquarters in Basingstoke, strengthening its management team, expanding its product range and speeding up development in higher margin areas such as networking. Datrontech will pay an unchanged dividend of 2.1 pence.
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