Systemax Reports Q4, Full-Year Losses

Publish date:

Port Washington, N.Y. — IT reseller and multichannel retailer Systemax reported losses for the fourth-quarter and full year on restructuring charges and weakness in its U.S. consumer business.

Losses totaled $27.1 million in the fourth quarter, ended Dec. 31, 2012, compared with net profit of $14.7 million during the year-ago period, and the company lost $8.3 million for all of 2012, compared with a $54.4 million profit in 2011.

The losses included a $35.3 million write-off from the consolidation of its CompUSA and Circuit City retail and e-tail operations under the TigerDirect brand and a $4.6 million write-down after exiting the computer manufacturing business.

Total sales fell 4.4 percent for the quarter, to $935.2 million, including a 12.1 percent decline in consumer channel sales, to $408.5 million, and consumer channel comp-store sales declined 11.3 percent.

For the full year, net sales slipped 3.7 percent to $3.5 billion, including a 14 percent decline in consumer channel sales, to $1.5 billion.

Sales were adversely impacted by unfavorable currency exchange rates, Systemax said.

In contrast with strong B to B performance, buying patterns within the consumer channel “remain challenged,” chairman/CEO Richard Leeds said, due to eroding demand and pricing, December’s fiscal cliff fears, and ongoing U.S. budget discussions which have been “an overhang on both businesses and consumers.”

Leed said the company is “focused on addressing the challenges” in its North American retail business and is “committed to improving our performance.”


Related Articles