UK's Softcat boosts profit guidance on strong corporate demand for AI tech
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FILE PHOTO: AI (Artificial Intelligence) letters are placed on computer motherboard in this illustration taken, June 23, 2023. REUTERS/Dado Ruvic/Illustration/File Photo/File Photo
May 22 (Reuters) - British IT firm Softcat on Friday raised its annual profit forecast on strong corporate demand for AI infrastructure and as customers rush orders to evade shortages in global memory chips.
Technology infrastructure firms have benefited from an exponential growth in demand for AI-related products, as companies increasingly incorporate artificial intelligence in their operations.
Here are some more details:
• Marlow-based firm said it expects mid-teens growth in annual adjusted operating profit above the previously guided high single-digit growth
• Group said it delivered double-digit year-on-year growth in gross profit and adjusted operating profit in the third quarter as customers ordered products in advance, to sidestep global supply constraints in memory chips
• Memory chipmakers have struggled to keep up with the global requirement for their equipment as competition among tech service providers and product developers intensifies.
• The company, which provides IT services and infrastructure, said it was aware of the uncertainty caused by the ongoing memory shortages and macroeconomic environment.
(Reporting by Simone Lobo in Bengaluru; Editing by Harikrishnan Nair)
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