Systemax ends tough 2009 on a high


Systemax ends tough 2009 on a high

Microscope contributor

Systemax reckons the acquisition of WStore boosted B2B operations to record levels in Q4 but despite this the unit's sales declined for the year.

Profits for the quarter grew 86% to $18.4m (£12.2m) as sales rose 15% to $938.2m (£626m), however adjusting for a shorter quarter of 12 weeks compared to 13 a year ago, the bottom line actually swelled 24%.

Revenues at the consumer unit went up 9% to $537.6m while sales in the commercial business grew 24% to $400.6m.

"Our business to business sales growth was the highest, driven by the impact of the WStore acquisition which was completed in September 2009 and modestly improving economic conditions," said Richard Leeds, CEO at Systemax.

Consumer sales were buoyed by a "robust holiday season" with netbooks, digital cameras and smaller flat screen TVs particularly in demand, he added.

For the year, group sales and profits dropped 4% and 12% respectively to $3.16bn and $46.18m. Split by business unit, consumer revenues grew 12% to $1.845bn, as B2B sales dipped nearly 5% to $1.32bn.

The firm owns a number of brands including Misco in Europe and Tiger Direct and Circuit City in the US.

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