The Dicker Data Ltd (ASX: DDR) share price has come under pressure on Thursday following the release of its full year results.
At the time of writing, the technology hardware, software, and cloud distributor's shares are down 5% to $10.31.
However, despite this decline, the Dicker Data share price is still up over 64% since this time last year.
How did Dicker Data perform in FY 2020?
Dicker Data was on form again in FY 2020 and delivered further solid revenue and profit growth.
For the 12 months ended 31 December, the company reported a 12.8% increase in revenue from ordinary activities to $2 billion.
This was driven by strong demand for remote working solutions and virtual capabilities and the accelerated digital transformation of businesses as a result of the COVID-19 pandemic.
The addition of a number of new vendors over the past few years has supported its growth. This has increased the breadth of products on offer.
In respect to earnings, Dicker Data recorded a profit before tax of $81.9 million. This represents a 27.7% increase on the prior corresponding period.
Whereas on the bottom line, net profit after tax rose 5.3% to $57.2 million. However, it is important to note that FY 2019's profit after tax includes profit from the sale of property. This profit has been excluded from the above-mentioned profit before tax metric.
Adjusted underlying earnings per share increased 19.6% year on year to 33.95 cents per share.
In light of this strong form, the Dicker Data Board paid out quarterly dividends totalling 35.5 cents per share during the 12 months.
Management commentary
Dicker Data's Chief Executive Officer and Chairman, David Dicker, commented: "Our FY20 result represents over 42 years of experience and a significant growth trajectory. Since being listed on the ASX on 24 January 2011 at an initial market cap of $25 million, today shares have recently traded around $12 with a market cap of just under $2 billion."
"Over a decade, an original shareholder's stake of 10,000 shares at $2,000 would now be worth around $120,000. This solidifies the company's status as a true Australian success story and a fast growing and high-returning stock."
Outlook
Although no guidance has been provided for FY 2021, Mr Dicker spoke positively about the company's outlook.
He said:
"Moving into the new year, 2021 presents significant opportunity for the technology sector with digital transformation accelerating, businesses becoming digital natives and the evolving hybrid workforce driving the need for smarter, faster and collaborative technology solutions."
"There is no doubt cybersecurity will continue to be a key focus for all sectors in 2021, with intelligent solutions like Zero Trust enabling secure, compliant, and protected technology environments. We saw an unprecedented spike in demand for devices throughout 2020 and expect this to continue this year. We are anticipating a high level of growth in automation, machine learning and data capture and analysis tools as businesses and governments prioritise efficiency and productivity within their operations."
"Another key catalyst for growth in the next 12 months, is the Company's recent partnership with VMware (NYSE: VMW). Not only will this unlock the direct VMware business, but an entire ecosystem of market-leading technology solutions through the large number of VMware's strategic and technology alliance vendors we already work with."
