Logicom comes out fighting

Distribution house Logicom has come out fighting, despite the fact that it faces bad debts totalling in excess of US$6.1m from three Dubai-based customers. An upbeat statement to the stock market and a successful reseller event highlighted the fact that Logicom is very much alive and kicking.

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By  Stuart Wilson Published  July 2, 2006

Distribution house Logicom has come out fighting, despite the fact that it faces bad debts totalling in excess of US$6.1m from three Dubai-based customers, believed to be Fortex-MID, Micron and MST. An upbeat statement to the stock market and a successful reseller event highlighted the fact that Logicom is very much alive and kicking. Logicom, which had issued a statement on the Cyprus Stock Exchange outlining its bad debt exposure, has now issued a new statement claiming that the company expects an improvement in its six-month results despite the credit problems that were announced on 31/5/2006. The statement read: “We expect that the profits for the first half of 2006 will be better compared to the corresponding results of 2005 due to the significant increase in the turnover of all Group’s activities.” “With reference to the announcement dated 31/5/2006, the Company proceeds to all necessary acts for the collection of all amounts due. It is clarified that even if the Company includes a provision for bad debts at the preparation of the first half results, the results will continue to be positive.” It remains very much a case of ‘business as usual’ for Logicom’s Dubai operation, which held a highly successful reseller day at the Fairmont Hotel in Dubai last week, attracting more than 120-plus attendees to the event. The agenda included presentations from Linksys, Cisco and Intel. Homayoun Tabatabai, business development manager at Logicom Dubai, issued the following statement, underlining the company’s ongoing commitment to the local market: “The recent events in Dubai have undoubtedly raised some turbulence and uncertainties to the market and to our channel, which we loyally serve over the years. We evaluate that any effects that these events may have in the market will be short-term and stability and market growth will return very shortly.” “Admittedly, Dubai has an integral role in the overall development of the regional IT market and despite the recent events, we expect Dubai to continue to play this role on a set of rules, securing even better the commercial environment,” the statement continued. “Within this context, Logicom is committed to invest in Dubai and in developing the local channel through its subsidiary companies Logicom Dubai LLC and Logicom FZE, aiming to remain amongst the leading IT distributors in the region,” the statement concluded.

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