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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."