K-Tech is not reassessing outlooks for 2008, amid IT acquisitions postponement trend

The company maintains outlooks on 15%-20% annual business growth; however certain changes may appear due to the evolution of the market in the final quarter of the year.

“The objectives are still standing, whereas they will be conditioned by the evolution of the market in this quarter, as there is a trend of postponement of IT acquisitions. Slowing down growth pace has three basic factors: global economic crisis, broad swings of currency exchange rate, and enforcement of the new lending regulations,” said Catalin Butolo.

The unit with the biggest contribution margin added to K Tech’s profit was the distribution division with 51% share, followed by the retail division with 49% share.

“Separation of the two sale divisions in profitability centers, such as relocating sidewalk units in commercial centers have geared these outcomes in a very consolidated market with fierce competition, Thus, through the two divisions, we have managed to peak a 23.6 million US dollars turnover, up approximately 15% from a year ago”, said Catalin Butolo, Marketing Director of K Tech Electronics.

The company’s market share climbed to 10.5%, due to its enrollment in Euro200 project, where the number of systems commercialized mounted to 3,871, up 77% from previous campaign.

By this yearend, the retail network of K-Tech will account for 54 stores, whereas the company will frame the expansion plan of the chain according to this year’s financial outcome.