Positivo's Q2 in the black a sign that things are looking up, says exec

Tuesday, August 16, 2011

Brazilian computer maker Positivo Informática's Q2 results are a clear indicator that business is turning around after several quarters of falling revenues, and following a Q1 net loss, according to Positivo president Hélio Rotenberg.

"I'm very pleased with the results, as they show we went back to the track of profit. I believe that this way we managed to snatch a few points in market share," Rotenberg said in a conference call with investors to review quarterly results.

The company reported a 9.5mn-real (US$5.97mn) adjusted net profit for Q2, compared to a 33.7mn-real loss in Q1 and a 30.2mn-real profit in 2Q10. Revenues were up 30.7% sequentially to 551mn reais in Q2, but down 6.8% year-on-year.

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During the conference, Rotenberg highlighted results concerning the gross margins and the Ebitda margin that, according to the executive, best illustrate this path to recovery.

The gross margin was at 24.8% in Q2, 4.1 percentage points up from Q1, while the adjusted net margin was 1.7%, a 9.7-point increase from the previous quarter. Adjusted Ebitda margin was 2.8%, a positive variation of 4.6 percentage points from the first quarter.

In the second quarter, Positivo's overall PC sales volume was up 8.6% year-on-year and 33.3% sequentially, to 520,565 units. The number of desktops sold fell 9.2% year-on-year, but increased 32.3% from the first quarter of this year, to 273,765 units. Notebooks were up 38.8% year-on-year, to 246,800 units.

Rotenberg said the numbers, however, would have been better had it not been for a fall in government sales, in contrast with retailers. He pointed out that such fall was expected, though, due to adjustments after the inauguration of a new federal government and a change of ministers.

In fact, in the retail segment sales, were up 28.2% year-on-year, topping 429,247 units, while government sales dropped 46% to 69,159 units (up 11.6% sequentially). Corporate sales hit 22,159 units, up 36.6% year-on-year.

The executive stressed that a drop in the supply of some components produced in Japan after the earthquake there also weighed on the results.

Use this link to see the full results.