Positivo revenues decline in 4Q10, but up for year

Monday, January 31, 2011

Brazilian PC maker Positivo Informática (Bovespa: POSI3) registered a 3.9% year-on-year slide in Q4 net revenues to 590mn reais (US$352mn), while full-year 2010 revenues were up 7.1% to 2.33bn reais, the company said in a statement.

Falling computer prices and reduced desktop and netbooks sales contributed to the Q4 downturn. PCs cost on average 11.7% less year-on-year in the last quarter of 2010, as Positivo sold 3.2% fewer desktops and 21.4% fewer netbooks during the period. Year-on-year notebook sales grew 36.6% overall in Q4, however, and laptops surpassed desktops as Positivo's principal seller.

Heightened sales volumes and a near doubling of revenues derived from the public sector, meanwhile, stoked Positivo's full-year growth. The company sold 11.3% more PCs in 2010, closing the year with 1.98mn units moved. Desktop purchases increased 8.5% to 1.15mn in 2010. Notebook sales rose 15.6% for the year, even as the company's netbook business contracted 17.5%. Revenues from laptops, however, sagged 1% in 2010.

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The value of sales to public entities grew 98.7% to almost 700mn reais in 2010, despite cooling off in 4Q10. The government's total purchases of Positivo PCs increased nearly 80% to 452,400 for the year, and Positivo expects the education ministry's Computer for Every Student program (Prouca) to continue driving sales to the sector in 2011. Already the government has contracted Positivo to supply 360,000 computers this year.

The retail sector continued to be Positivo's biggest patron, even as the 1.48bn reais in 2010 revenues from the vertical came up nearly 10% less than the 1.65bn reais from 2009. The company forecasts a rebound in sales to the sector in 2011, citing IT consultancy IDC's 15.2% growth expectation for the overall retail PC market.

Revenues from the corporate market came up 16.6% shorter for the year, even though Positivo had a strong Q4 in this area.

Founded in 1989, Positivo is Brazil's leading PC maker in terms of units sold. Chinese computer manufacturer Lenovo has been rumored to have interest in purchasing Positivo, but the Brazilian firm issued an official denial of any impending acquisition.