Nordic reseller powerhouse Atea has seen its top and bottom grow across the group, however services and hardware revenue were both down for its corruption tainted Danish arm.
Atea CEO Steinar Sønsteby said that hardware sales were down 9.6 per cent, driven by lower sales of PCs to the public sector after the loss of a large frame agreement in 2018.
Services revenue also fell by 17.4 per cent, due to lower sales of consulting and contracted services.
The Danish government issued an edict in summer 2018, banning end users form using Atea to deliver public sector contracts - incusing kicking it off the country's PC procurement framework - due to several executives being mired in a bribery case.
"One of the difficulties in beating last year's quarter [Q2 2018] was because in June last year we lost the PC agreement," Sønsteby said.
"We had it for Q2 last year, but we didn't have it after Q2 last year.
But we have been able to replace one of the biggest frame agreements, and still get back to growth this quarter….We're on all the non-binding frameworks in Denmark, apart from the PC agreement."
In a sign of returning market confidence in Atea, software revenue increased in Atea Denmark in Q2, up by 23.5 per cent, driven by a recently renewed public sector frame agreement.
"This is actually the first time we have manage to return to positive growth since Q1 2017", Sønsteby said.
"Having said that I'm of course not satisfied, and neither is Mortern Felding [Atea Denmark's CEO]. The numbers in Denmark are not good enough. It's part of the reality that it will take us longer than we anticipated to return to healthy growth in Denmark."
From a PR perspective, what is unlikely to help is the news is today a former Danish sales manager has been given more jail time for his role in a bribery scandal with employees in the Danish public sector.
Meanwhile, group EBIT has grown 14.3 per cent year on year to NOK 145m (€15.08m), largely driven by the success of its software division. Sales were also up by 4.3 per cent to NOK 9.5bn (€987.86m).
Within that, software sales outgrew both hardware and services, rising 18.4 per cent.
In a webcast to investors, Sønsteby point edto the firm's success in getting onto public sector frame agreements as being key to its current and future growth.
"Seven out of the 14 frame agreements we're on were won in the last six months, and they last for years to come" he said.
"To get to have this selling platform is a lot of work. We're the only one who is even close to having this platform.
"We thought that we would be there a quarter ago. These are scheduled to come out and we thought we would already be on them in the earlier half of the year.
"But now we have most of them so we can start selling on them…We are predicting more growth."
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