INTERVIEW: Phoenix IT Sees Accelerated Revenue Growth
November 29 2010 - 6:08AM
Dow Jones News
Information technology support firm Phoenix IT Group PLC
(PNX.LN) said Monday that strong demand for outsourced services
known as "cloud computing" should help it to accelerate revenue
growth in the second half of its fiscal year and beyond.
"There's a marked shift to [businesses] putting servers into the
cloud, and the recession has accelerated that as people look to
save money," Chief Executive Nick Robinson told Dow Jones
Newswires.
Cloud computing is a form of outsourcing where computer services
are hosted on a third-party's servers, and delivered remotely over
the Internet.
Robinson said increased demand for such services will help the
firm to increase the growth rate of its revenue, which climbed 13%
in the half year ended Sept. 30.
Phoenix is investing in sales and marketing, as well as
datacenter infrastructure, to cope with increased demand, he
added.
Sales and marketing investment, coupled with the start of major
contracts held back pretax profit in the first half, which was flat
on the year at GBP13.3 million. The contracts, with Capita Group
PLC (CPI.LN), KCOM Group PLC (KCOM.LN), and Torex Retail Holdings
Ltd., weren't immediately profitable, but will contribute to higher
profit in the second half, Robinson said.
-By Tommy Stubbington, Dow Jones Newswires; 44-20-7842-9268;
tommy.stubbington@dowjones.com
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