Shares in IT hardware distribution business Dicker Data Ltd (ASX: DDR) fell 9.5% to $2.42 today after it announced it has ended its partnership with key supplier Cisco in the New Zealand market.
New Zealand is a small market for Dicker Data, but one its pinning some of its growth ambitions on and Cisco in Australia is a major partner for it so investors may be twitchy over that partnership for the short term at least.
Dicker Data has also recently announced a string of significant new distribution partners and is growing its cloud services hardware distribution business, which sits in the middle of a wider growth sweet spot thanks to growing demand for IT hardware across the digital economy.
Dicker Data also reaffirmed it expects to meet its full year profit before tax guidance for FY 2017 and selling for $2.43 offers a bumper fully franked 6.75% yield.
