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UPDATE 1-Datatec says Westcon's business EBITDA profitable

Mon Jul 13, 2009 2:21am EDT

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* Westcon benefitted from high operational gearing

* U.S. ops impacted by challenging trading conditions

* Logicalis affected by larger projects being delayed

(Adds details)

JOHANNESBURG, July 13 (Reuters) - South African IT firm Datatec Ltd (DTCJ.J) said on Monday its Westcon's emerging markets business was now profitable at EBITDA level, but the Logicalis unit was impacted by challenging trading conditions in the Unites States.

The company, which is listed in London and Johannesburg and is a distributor for companies such as Cisco, said it expects Westcon's financial performance to improve for the remainder of the year, benefitting from high operational gearing that now exists as a result of the reduced cost base.

Datatec said Logicalis has been affected by larger projects being delayed.

The company will release its interim results on October 14.

(Reporting by Gugulakhe Lourie)



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