Renaissance tips higher second-half profit

Listed computer company Renaissance Corp said today sales are ahead of target and it expects to beat its first-half profit by a considerable margin.

Renaissance, which distributes and markets IT products -- including Apple Computer Inc's flagship iPod -- posted a 150 per cent increase in profit in the June half to $1.94 million.

Today, Renaissance said strong growth was continuing, and it expected its second half profit to December 31 to be "considerably ahead of that reported in the first half of this year".

As sole distributor of Apple products in New Zealand, Renaissance is riding on the coat-tails of Apple's recent success.

Fuelled by record sales of its iPod players and strong back-to-school computer sales, Apple earlier this month said its fourth-quarter net income surged more than 300 per cent to US$430m ($629.2m) marking the company's highest ever earnings and sales for a quarter and year.

Unlike fellow IT companies Microsoft or Hewlett Packard, Apple does not have a corporate office here. Renaissance acts as a mix of corporate office and distributor for Apple, and hence margins on Apple products are higher.

Renaissance also markets and distributes a range of other products, including Asus notebooks, Palm hand held personal digital assistants, Epson printers, and Hyundai and Philips monitors.

Shares in Renaissance, which with a market capitalisation of $48 million is a relative minnow, rose 8c, or almost 7 per cent, on the news to $1.25, just shy of a year high of $1.35.

- NZPA