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Altron Systems Integration (ASI) saw its revenue slide by R254 million to R1.7 billion during the period. The fall in revenue was due to a number of issues such as a 13.3% slide in sales and a shortage of technological components, particularly chips, which tech companies around the world have been battling with.
Altron Systems Integration (ASI) saw its revenue slide by R254 million to R1.7 billion during the period. The fall in revenue was due to a number of issues such as a 13.3% slide in sales and a shortage of technological components, particularly chips, which tech companies around the world have been battling with.
The global chip shortage has severely impacted lead times in getting hardware into the country and fulfilling customer orders, according to the company officials.
Hardware deals closed in time. But due to lead times, the company had to incur an additional expense of R93 million. However, the group’s Managed Services segment saw much better results, with the division reporting a 3.3% increase in revenue to R2.6 billion. The improved performance was driven mainly by its Altron Managed Solutions (AMS) business which recorded a 21% growth in revenue to R1.8 billion.
This segment’s performance was however hampered by that of the Altron Nexus business, which saw an R223 million revenue decline to R803 million. The group says this was due to lower broadband revenues in the period. The group’s Own Platform division showed resilience with revenue 6.2% higher at R2.9 billion and operating income 16.9% stronger at R546 million in the period.
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Altron says it expects to see supply chain and pricing pressures continue as global component shortages persist. It further expects the trend of resilience to remain among its business segments. The company plans to place significant focus on returning its ASI business back to profit. The group further announced plans to dispose of its banking business under AMS, as it continues its pursuit of realising a capital-light organisation.
