Systemax Q4 Profits Soar 85%
By Alan Wolf On Mar 23 2010 - 11:00am
PORT WASHINGTON, N.Y. —
Fourth-quarter profits nearly doubled
for IT supplier and reseller Systemax
thanks to stringent cost controls and
strong holiday demand.
Net income rose 85 percent to $18.4
million for the three months, ended
Dec. 31, 2009, which also included a
one-time after-tax gain of $1.8 million
from a favorable lawsuit settlement.
Net sales grew 15 percent to $938.2
million, a company record, while revenue
from Systemax’s retail and direct-
sale operations, including CompUSA,
TigerDirect and CircuitCity.
com, rose 9 percent to $537.6 million.
Same-store sales increased 12 percent
year over year.
“The market share growth strategy
we have followed since the beginning
of the economic downturn is beginning
to pay off for us,” noted chairman/
CEO Richard Leeds “Our consumer
channel sales benefited from a
robust holiday season that saw consumers
shopping for lower-priced
products such as netbook computers,
digital cameras and smaller flat-screen
televisions both online and at our retail
stores, as well as the Circuit City
asset purchase which was completed in
“Looking ahead,” he continued, “we
believe our capacity to capture value
and deliver it to customers through
our recognized brands … positions us
well for 2010.”
For the full calendar year, net income
fell 12.6 percent to $46.2 million
and net sales rose 4 percent to $3.2 billion,
another company record. Revenue
from retail and direct-sale operations
increased 12 percent to $1.8 billion.