VAR500: Revenue Up For CSC Consulting, Insight, ePlus

VAR500: Earnings Up At CSC, Ciber, ePlus

More earnings reports were released by several IT solution providers during the past week, and, once again, VAR500 companies had a lot to be happy about. Revenues were up -- at some VARs more than others -- and despite the roiling stock market, many execs have a rosy outlook.

Also, a cloud solution launched, aimed at increasing efficiency at pharmaceutical companies, and one integrator gave back to the Joplin, Mo., community devastated by the May tornado.

CSC Posts Strong Quarterly Growth

IT solution provider CSC on Wednesday said sales climbed 28 percent in its first quarter, with tax benefits and strong revenue growth in its business solutions and services segment offsetting lower margins. First quarter fiscal 2012 revenue came in at $4.03 billion. "This quarter's margin results were adversely affected by performance within the Managed Services Sector. Improvement actions are underway within this business," said Michael W. Laphen, CSC chairman, president and CEO. Earlier earnings reports reflected the downturn in spending by the public sector, an area in which CSC has a strong presence. For this quarter, North American Public Sector business revenue was flat at $1.48 billion.

ePlus Revenue Up

Revenue at the VAR500 solution provider ePlus totaled $211.5 million, an increase of $22.5 million or 11.9 percent, compared with $189 million in the same quarter in 2010. The company is continuing to hire. During the past 12 months, ePlus added 88 employees and acquired two companies. "Over the past few months, we've had opportunities to hire groups of experienced sales professionals and engineers in desired markets," Phillip G. Norton, chairman, CEO, and president said. "We believe this is a very cost-effective method to capture market share."

Insight: Fifth Quarter Of Growth

VAR500 IT solution provider Insight said that in North America, net sales were $989.3 million for the second quarter of 2011, up 14 percent from the second quarter of 2010. Net sales of hardware, software and services increased 17 percent, 9 percent and 23 percent respectively, year over year.

’Strong execution supported by continued favorable market conditions enabled us to deliver a fifth consecutive quarter of double digit growth,’ stated Ken Lamneck, president and CEO. ’We remain focused on growing sales faster than the market in 2011 while continuing to drive operational efficiencies throughout our business.’

Ciber Posts Weak Sales Growth

Solution provider Ciber said revenue increased 1 percent in its second quarter, up to $267.8 million. The company also reported full year 2010 figures, with sales growing just 3 percent to $1.1 billion. The VAR500 solution provider is in a transitional year, having reported fairly volatile earnings recently. For example, Ciber reported an operating loss for the quarter of $26.5 million, equal to an operating income of $5.2 million.

"We are undergoing an important transformation at CIBER," president and CEO Dave Peterschmidt said. "This past year we set into motion a detailed and focused strategic plan and put in place the operational regimens necessary to achieve sustained and predictable performance and to increase shareholder value." The solution aims to help protect consumers against dangerous or ineffective drugs, while protecting revenue and intellectual property of pharmaceutical companies from the growing black market. The service will initially roll out in India.

New HP Service Protects Intellectual Property

HP Services is offering its Global Authentication Service, a cloud-based solution that aims to fight the global problem of counterfeit and stolen drugs, estimated to be a $75 billion illegal global industry.

The HP Global Authentication Service lets pharmaceutical companies note how products move through their global supply chains with a much higher degree of accuracy. The solution aims to help protect consumers against dangerous or ineffective drugs, while protecting revenue and intellectual property of pharmaceutical companies from the growing black market. The service will initially roll out in India.

Capgemini Donates $50,000 For Joplin Recovery

Capgemini U.S. gave $50,000 to the Greater Ozarks Chapter of the American Red Cross to aid with recovery efforts in the aftermath of the May 22 tornado in Joplin, Mo.

’Capgemini not only serves customers in Missouri, but also has nearly 150 employees who call Missouri home,’ said Lanny Cohen, chief executive officer, Capgemini US LLC. ’We have a long and great history operating across the state."