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Systemax Posts Strong Q2 Sales, Earnings

8/12/2010 12:04:31 PM Eastern
Port Washington, N.Y. - IT manufacturer and retailer Systemax posted record revenues for the second quarter despite declines within its consumer sales segment.

Net sales rose 12 percent for the three months, ended June 30, to $805.9 million, fueled by strength in the company's B-to-B channel and European operations.

But sales within the consumer segment -- which includes CompUSA, TigerDirect, CircuitCity.com, inbound call centers, and TV shopping -- fell 5.8 percent, while same-store sales slipped 11 percent.

Nevertheless, net income increased 46.9 percent to $9.4 million for the quarter.

Chairman/CEO Richard Leeds said the strong B-to-B results stemmed from a "return to more normalized spending" by small- and mid-sized businesses.

In contrast, "The consumer environment is challenging," acknowledged Gilbert Fiorentino, chief executive of Systemax's technology products group. "However," he said, "we remain optimistic given the unique position of our brands and the growth opportunities we see to expand our presence on the web and at retail. Through our recently launched strategic initiative to co-brand two of our core retail businesses, CompUSA and TigerDirect, we will improve cross promotion to our customers and strengthen our multichannel strategy."

Leeds added, "Our consolidated results demonstrate the benefits of our business diversification, one of the leading components of our long-term growth strategy, and continue to buffer the challenging consumer spending environment.

 "Looking ahead," he added, "we remain focused on prudently building our businesses and leveraging our robust brand portfolio."
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