- IT and electronic goods company Harris Technology Group (HT8) managed to successfully meet the increased demand for its products due to COVID-19
- With the worldwide lockdown causing homeschooling and working from home arrangements, Harris has seen a 40 per cent spike in its online sales
- The company expects this trend will continue well after the pandemic as people become accustomed to online shopping
- Additionally, Harris’ sale of its Anyware subsidiary and relative stock contributed to savings along with downsizing to one warehouse location
- Furthermore, the recent establishment of Pro-Hygiene is expected to contribute $400,000 in revenue for the upcoming quarter
- Harris is up a slight 2.63 per cent and shares are trading for 3.9 cents each
Online IT and consumer electronics goods company Harris Technology Group (HT8) has released its March quarterly report.
Like many other companies, Harris has faced various challenged as a result of COVID-19.
While the COVID-19 lockdown has presented sales opportunities. Harris has had to navigate astute buying and a strong understanding of global markets and the supply chain to provide for this increasing demand.
As COVID-19 caused students to undertake learning from home and many employees to work from home, Harris increased its inventory from $766,000 to $1.44 million to meet the surging demand.
The company claims its senior executive team have been actively involved in making sure there’s an adequate supply of key IT products to meet the challenges of the quarter.
In fact, Harris has been successful in dealing with its suppliers to secure the latest IT hardware such as monitors, webcams and headsets to satisfy the demand from its online customers.
Positively, sales for the March quarter were significantly higher than previous quarters at $3.318 million. This represents a 40 per cent growth from $2.363 million in the March 2019 quarter.
The company expects higher sales will continue as more and more customers become used to the convenience of shopping online.
While the Directors expect the company will record an operating profit for the 2020 financial year, the extent of the profit is not yet known, especially as sales revenue for the new Pro-Hygiene products in May and June is uncertain.
Earlier in April, Harris Technology announced a new line of protective hygiene products. The announcement of this “Pro-Hygiene range caused a 232 per cent jump in Harris’ share price.
The company expects this line will lead to total revenue sales of up to $400,000 for the June quarter. It will achieve this through direct sales via its e-commerce website and other distribution partners.
Additionally, sales of the remaining stock from the sale of its Anyware subsidiary have also boosted operating profit for this reporting period.
Finally, in keeping an eye on its operational expenditure, Harris consolidated into one warehouse and office location and reduced employee numbers.
The June 2020 quarter is expected to continue with increased revenue and improved margins as compared to previous quarters. Harris is also counting on the development of commercial partnerships with Amazon, Kogan, Catch and eBay to contribute materially to sales.
Harris is up a slight 2.63 per cent and shares are trading for 3.9 cents each at 1:56 pm AEST.