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Distie blames Y2K for selling too much

Panic buying over, no surge

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European Micro Holdings, the Nasdaq-listed, American-owned, but Europe-mainly IT distributor, pulled in sales of for the first quarter, ended September 30, of $29.1 million, against $32.8 million for the same period last year.

The company has come up with an interesting reason for the difference - it blames increased demand in Q1 last year, caused by "Y2K-inspired concerns of product availability". No panic buying this quarter, though.

On a brighter note, EMCC is almost into the black, moving from a cumulative net loss of $3.4 million in the second half of the previous financial year (January- through June 2000) to near breakeven this quarter. Net loss was $68K, compared with net income of $207K in Q1 last year.

EMCC operates more like a broker or product arbitrageur than a traditional distie - the company "monitors and capitalizes on worldwide market-price disparities to purchase a select group of in-demand products from other distributors in 28 countries in 13 currencies". It flogs these on to its reseller customers. ®

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