The market for personal computers is “returning to a state of health”, says JSE-listed computer assembler and technology distributor Mustek.

In notes accompanying its interim results for the six months to 31 December 2009, the company says growth predictions for the SA market are “finally positive”, with strong growth in notebook sales predicted.

Sales of netbooks, small, low-powered and low-cost laptop PCs, have also continued to perform well, against expectations. “Intel’s Atom platform has gone dual-core, clock speeds are increasing and innovative designs are coming to the fore.”

Windows 7, Microsoft newest desktop operating system, is also helping propel sales, Mustek says. The software is “achieving a great market response and the positive sentiment will drive more companies to adopt it quickly and this will result in a hardware refresh cycle this on all fronts — government, enterprise, corporate and consumer”.

Mustek also expects Office 2010, which will go on sale later this year, to help the market. “This is Microsoft’s last really big show at an application suite before things head [online],” it says.

Other technologies that could propel growth include upgrades to the Wi-Fi standard and the roll-out of WiMax networks, it says.

Unfortunately for Mustek, the brighter outlook has come too late. It has been forced to rationalise its operations and retrench support staff.

It says it will continue to look for areas where it can improve its structure and operations and will increase its focus on working capital management.

The focus on cost-cutting is paying off. In the six months of last year, Mustek lifted headline earnings per share by 45% over the same six months in 2008 while operating profit climbed 66%. The improvement in the bottom line comes despite a 7% decline in sales.

Earlier this week, Mustek rival Pinnacle Technology Holdings also reported financial results. In the six months to 31 December 2009, Pinnacle’s revenue rose 8,2% and headline earnings climbed 37%.  — Duncan McLeod, TechCentral

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