In the three months to the end of September, Ementor made a net loss of NOK 218.8m ($32.4m), compared to a loss of NOK 28.3m ($4.2m) in the same period of the previous year. The company’s restructuring costs totaled NOK 230m ($34.1m) and related to the recent mergers between Ementor, Danish product reseller Topnordic AS, and Swedish computer equipment reseller Atea Holding AB.
The charges include NOK 118m ($17.5m) of provisions, largely related to staff cuts and property relocation, aimed at generating NOK 150m ($22.2m) in annual cost savings. The remaining NOK 112m ($16.6m) covers the write-down of assets, including IT systems, in an effort to reduce annual depreciation by NOK 20m ($3m).
The mergers with Topnordic and Atea boosted Ementor’s quarterly revenue to NOK 2bn ($293.8m) from NOK 623.4m ($92.5m) in the same period of the previous year. However, pro forma sales fell 2.7% to NOK 2.4bn ($358.4m), largely due to higher inter-company sales.
By merging with Topnordic and Atea, Ementor has attempted to reposition itself as primarily a product reseller. In the three months to September, product sales rose 15.4% on a pro forma basis to NOK 2.6bn ($384.9m), while consulting and services revenue also rose to NOK 395.5m ($58.7m) from NOK 355.4m ($52.7m) in the third quarter of 2005.
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