Feeds

Shareholders’ lawsuit pushes Merisel $21m into the red

Years of legal scrapping take its toll on results

  • alert
  • submit to reddit

High performance access to file storage

Merisel has blamed its $20.5 million loss on years of legal wrangling with shareholders. First quarter net income for the US distributor was $491,000 without the charge. Sales for the quarter rose to $1.3 billion. This compared to the previous quarter’s $1.1 billion turnover and net income of $3.6 million. The company stated that it had entered into an agreement to dismiss the litigation pending between itself and certain shareholders and former shareholders. The fight is understood to have been running for years. Merisel also said it was discussing the possible reimbursement of legal costs with its insurers. Merisel chairman and CEO Dwight Steffensen said putting the litigation behind them would: "Serve to eliminate major uncertainties and management distraction". The company said expenses including higher operating costs to ensure Y2K compliance, and asset depreciation from its new SAP system, would effect its finances for the rest of 1999. "Given current margin pressures in the channel, we are driving initiatives that focus on increasing efficiencies, reducing costs, driving additional growth with existing infrastructure and differentiating Merisel from our competitors," said Steffensen. He added that Compaq’s decision earlier this week to keep Merisel as one of its four distributors in the US would help the company’s growth. ®

High performance access to file storage

More from The Register

next story
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
Sorry London, Europe's top tech city is Munich
New 'Atlas of ICT Activity' finds innovation isn't happening at Silicon Roundabout
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
prev story

Whitepapers

Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
SANS - Survey on application security programs
In this whitepaper learn about the state of application security programs and practices of 488 surveyed respondents, and discover how mature and effective these programs are.