More like this

Business

Arrow

The Channel

Systemax sales grow and profits too

Profits and sales up

hands waving dollar bills in the air

Systemax's investigation into whistleblower allegations against former exec Gilbert Fiorentino added $7m to its Q2 pre-tax profits but the consumer slowdown dented sales growth.

The parent of US retailers Tiger Direct and CompUSA and reselllers Misco and WStore in Europe, has reported profits of $15.5m, up 64 per cent on the June ended quarter a year ago and sales of $872m, a rise of eight per cent.

The firm also revealed its settlement with former Technology Group's divisional CEO Fiorentino added $7m in special gains to the business - net of legal fees - following an investigation into claims made against him.

He was asked to resign in May, repaying $11m in salary and bonuses received from Systemax, and is now the subject of an SEC investigation, while his brothers – also former execs at the firm – are now the focus of a police investigation into a theft at the Miami operation.

During the quarter, B2B sales grew 10 per cent on a constant currency basis to $482.5m as consumer sales stalled, falling 1 per cent to $389.7m. On a like-for-like basis, same store sales fell 4 per cent.

"Our business operations continue to perform well...as customers update their IT infrastructure," said CEO Richard Leeds.

"Consumer channel sales were flat, reflecting a very competitive consumer technology market, particularly on the web," he added. ®

Sponsored: The world has changed, has your IAM strategy?