By PAUL BRISLEN
Overwhelming demand for Apple's iPod has helped local distributor Renaissance to a bumper six- month result.
Total operating revenue for the six months to the end of June was $51.1 million with an after-tax profit of $777,000, an increase of 14.4 per cent over the previous corresponding half year.
Managing director Paul Johnston says back orders of the iPod have taken six months to clear.
"Basically every unit that comes into the country has already been sold."
Johnston also expects big things from the new mini iPod, which went on sale last month.
"I set very aggressive targets for the team, expecting we'd have to drive the market, but in the first week we sold nearly two months' worth of stock," Johnston said.
The mini iPod also has a back order of "several thousand" units.
"Apple corporate described the worldwide sales as 'staggering' and I'd have to say that's what they've been here in New Zealand."
Johnston said Renaissance's other divisions had also been contributing to the bottom line.
"It's not a case of one product line doing well while the others drag, as is often the case. This time they're all doing well at the same time."
In 2002, Renaissance restructured, dumping several of its high-profile but low-margin contracts in favour of a smaller stable of exclusive distribution rights. Those include Apple, PalmOne, FileMaker and US Robotics. Johnston said the move had paid off for the company.
"We've been stable now for a couple of years and increasing gradually. We're lucky that at the moment we've got all our divisions on target or ahead of schedule, as well as iPod's huge boost."
Renaissance will pay a dividend of 3c a share fully imputed.
Renaissance
Operating revenue: $51.16 million.
Operating profit: $1.2 million.
Tax: $430,000.
Net profit: $777,000.
* Apple co-founder and CEO Steve Jobs is recovering from surgery to remove a malignant tumour on his pancreas. The rare form of pancreatic cancer is treatable by surgery and Jobs said he was expecting to make a full recovery.
NZ distributor of iPod enjoys profit increase
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