ASX tech share Dicker Data Ltd (ASX: DDR) is smashing the benchmark returns today.
Shares in the wholesale computer hardware and software distributor closed yesterday trading for $8.02. In early trade shares were changing hands for $8.57 apiece, putting the stock up 6.9%.
At the time of writing, shares have retraced some to $8.41 apiece, which sees the Dicker Data share price up 4.9%.
The All Ordinaries Index (ASX: XAO) is up 0.1% at this same time.
Here’s what’s piquing investor interest in this ASX tech share on Friday.
Dicker Data share price soars on profit boost
Investors are bidding up the Dicker Data share price today after the company released its unaudited half-year results for the six months ending 30 June (H1 2023).
Among the highlights, the ASX tech share reported:
- Revenue of $1.60 billion, up 9.4% from H1 2022
- Earnings before interest, taxes, depreciation and amortisation (EBITDA) of $71 million, up 16.4% year on year
- Net profit before tax of $54 million, up 8.0% from H1 2022
What else did the ASX tech share report?
Dicker Data noted that part of the boost in half-year revenue was driven by the full six-month contribution from its Hills acquisition, completed on 1 May 2022. Organic growth from existing and new vendors drove the rest of the revenue increase.
The business received some tailwinds from an easing of the past three years of supply chain disruptions and chip shortages. Management noted, “H123 exhibited the strongest signals yet of a normalising supply-side market.”
While the six months saw a decline in demand for personal computing devices, the company said its diverse business model enabled it “to capitalise on the demand for networking and storage products”.
The ASX tech share also noted an increase in its software business and growth in its access and surveillance business.
Looking ahead, the company said:
Cybersecurity continues to be a key focus for all sectors in 2023, with intelligent solutions such as Zero Trust and SASE enabling secure, compliant, and protected technology environments…
We are anticipating a high level of growth in the adoption of automation, machine learning and data capture and analysis tools as businesses and governments prioritise efficiency and productivity within their operations.
Dicker Data will release its audited interim report for FY23 on 30 August.
How has this ASX tech share been tracking?
The Dicker Data share price is down 28% over the past 12 months.
Longer-term, the ASX tech share is up 173% over five years.
