Systemax Posts Sales, Profit Gains

By Editors of TWICE -- TWICE, 5/17/2010

PORT WASHINGTON, N.Y. — Systemax reported a double-digit sales gain and increased net income for the first quarter, ended March 31.

Systemax, which sells CE and computer products via Web sites and retail stores, as well as its direct- mail catalogs through its TigerDirect, CompUSA, Circuit City, MISCO, WStore and other locations, said consolidated sales grew 22 percent to $915.2 million.

Net income was $11.8 million, up from the prior year’s $8.7 million.

Consumer channel sales grew 9 percent to $470 million. On a constant currency basis and excluding Wstore results, sales grew 1 percent.

Same-store business-to-business channel sales grew 20 percent while consumer channel sales declined 1 percent. A moderate same-store consumer channel sales increase in North America was off set by a decline in Europe, the company said.

Gilbert Fiorentino, CEO of Systemax’s technology products group said, “Our technology products group delivered an outstanding quarter with sales growth of 22 percent in U.S. dollars. Our business-to- business operations were the highlight of the quarter with strong sales growth in both North America and Europe.”

He noted, “In our consumer channels we had moderate sales growth in North America, which was off set by a decline in Europe.”

By product category, sales of computers, consumer electronics, computer accessories and software were all up. Computer components were up the least, at $1.4 million for the quarter, to $147.2 million.