US reseller Vanstar is the first company to report cost savings from channel assembly business, as it kept its profit in line with expectations during the autumn.
The company?s joint manufacturing of IBM PCs and its services business helped it keep costs down as Vanstar made $9.3 million in its second quarter to 31 October. It made $11.1 in its second quarter last year but sales rose from $543.7 million to $741.1 million over the same period and the figures matched analysts? expectations, because the company recently took over Synnex Information Systems.
Chief executive William Tauscher said channel assembly business from Compaq and Hewlett-Packard will help Vanstar cut inventory costs further in the first half of 1998, when IBM?s assembly business will be fully operational. ?The investments we made during the last fiscal year to build strength in our professional services consulting practices are contributing to the margin expansion in that business,? he said.
Tauscher made no mention of any proposed expansion of Vanstar into Europe, despite previous speculation.
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