Westcon-Comstor has doubled its losses for the 2018 financial year despite a $30 million bump to its revenues, figures it said were the result of earnings reinvestment and growth from vendor sales.
The distributor brought in $412.6 million in revenue for the year ending 28 February 2018, up from $375.4 million in 2017. In spite of that, the company posted a $5.3 million loss, compared to a $2.1 million loss the previous year.
“We are continuing to invest heavily into our digital tools, cloud platform and skilled local resources,” a spokesperson from Westcon told CRN with respect to profits. “The marketplace continues to be a competitive environment.”
Westcon said growth from its top vendors Cisco, Check Point, F5, Juniper, Palo Alto Networks and NetApp all contributed to both revenue and market share growth, with some posting double-digit growth year over year.
Staff numbers also increased to 307 from 286 due to investments in its sales operation team, cloud team and the dedicated renewals team.
The company also said Synnex’s acquisition of parent Westcon Americas last year had a positive impact as well.
“Operating as a global distributor, we also have the ability to manage global opportunities for our vendors and partners through a joint venture with Westcon Americas, providing continuity and a seamless global service,” the spokesperson said.
Looking ahead, Westcon said it is focused on extending its service capability to complement its partners’ capabilities through technical, education, professional, support, marketing and supply chain services.
“With the channel in a state of transformation, our strategy is firmly focused on helping our partners adapt to the new digital world,” the spokesperson said.
“We have been on a two year path of investment into a single global platform that delivers the tools, partner technology integration and automation our partners need to grow and thrive.”
In March, managing director David Gage resigned after 12 months in the role, with APAC director of vendor alliances Phil Cameron stepping in.