Mustek hikes pay-out o

Mustek hikes pay-out on sales growth of desktop computers

by Samuel Mungadze, 28 August 2014, 07:52
 
Picture: THINKSTOCK
Picture: THINKSTOCK

COMPUTER company Mustek on Wednesday declared a 40% hike in dividends to 28c, which was buoyed by sales growth of its Acer, Lenovo and Asus product ranges.

In Wednesday’s year to end-June results, Mustek said desktop computer sales were showing resilience and recovery due to corporate and consumer demand for larger screens and more powerful processors to do sophisticated tasks that cannot be done on tablets. Mustek reported a 13.4% rise in revenue for the period to R4.76bn. Headline earnings per share rose 38.3% to 100.72c.

"Corporate demand is currently the largest driver for SA’s technology purchases. Windows 8.1 adoption by corporations is increasing, but we believe corporations are waiting for Windows 9 with its renewed emphasis on the desktop," Mustek said. Demand for fibre-to-the-home (FTTH) was increasing and would boost its Huawei, cable and fibre sales, the company added.

"Large-scale FTTH seems like it’s finally becoming a reality. Suburbs, municipalities and gated communities deciding to roll out FTTH themselves are stimulating the carriers into action," the company said. Technology companies and mobile operators, in their pursuit of new revenue routes, have set their sights on the provision of FTTH services.

This area could open a new race among companies as they seek to offer affluent suburbs and gated neighbourhoods high-speed broadband connectivity. MTN and Vodacom are already aggressively targeting the FTTH market. Mustek also said it had completed the first phase of its expansion from an IT distribu-tor into a well-rounded provider of end-to-end hardware solutions.

"Every level of the technology stack is now filled by well proven branded products, from tablets and computers right through to networking fibre systems and CCTV surveillance solutions," said Mustek.

Mvunonala Asset Managers research analyst Alexander Duys was generally pleased to see improvement in the gross margin ratio, and said the forex market was starting to work for Mustek.