Positivo highlights gains in government sales as profits, revenues drop

- Wednesday, March 2, 2011

Positivo highlights gains in government sales as profits, revenues drop

Brazilian computer maker Positivo Informática (Bovespa: POSI3) realized "huge gains" in the government market, an isolated bright spot in the face of plummeting quarterly profits, company president Hélio Rotenberg said during a conference call with investors.

Sales to the public sector increased 62.5% year-on-year in 4Q10, as the company registered a 42.6% share of the vertical to close the period.

For the year overall, revenues from the government surged 98.7% as the volume of units purchased rose 50% to 452,370.

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Positivo already has deals in place with the government to deliver 360,000 PCs this year, including 250,000 as part of the education ministry's Prouca program to supply all students with computers. Positivo expects ultimately to supply 600,000 PCs under Prouca.

Positivo also boosted its share of the retail market to 24.9% during Q4, the company added.

Profits fell 74.4% year-on-year to 12.3mn reais (US$7.4mn) during the quarter, however, as international competition caused a drop in PC prices. Positivo's revenues from 4Q09 to 4Q10 slid 3.9% to 590mn reais.