Sony Sanctions Newegg In CE
By Alan Wolf -- TWICE, 9/29/2009
City of Industry, Calif. - Newegg.com, the largest CE- and IT-specialty e-tailer, has extended its direct-order relationship with Sony to all categories of consumer electronics, including home and car A/V, digital imaging, mobile communications and gaming, effective Oct. 1.
Newegg has long been authorized to carry Sony's Vaio PC line, and expanded the partnership following a year-long courtship, explained Michael Amkreutz, the e-tailer's product management VP.
Initial shipments began in September and Newegg expects to have its full Sony assortment in place by year's end, where it will be presented in a dedicated brand store featuring such new site features as streaming video and 360-degree high-definition photography.
News of the Sony partnership follows Newegg's filing on Monday of a proposed $175 million initial public stock offering.
According to the Securities and Exchange Commission filing, the company will use the proceeds to expand in China, fund other capital expenditures and pay down $8.6 million of debt.
Newegg said it has been profitable since its launch in 1991, and earned $29 million last year on net sales of $2.1 billion. Net sales for the first half of 2009 were up 7.4 percent to $1.1 billion, and earnings rose 21 percent to nearly $16 million, according to a preliminary prospectus.
The company began as a low-cost retailer of computers, components and peripherals and more recently expanded into consumer electronics and small kitchen appliances.
