Merisel is facing difficulties after turning in a massive net loss of $117 million for its Q3 ended 30 September 1996. This figure compares with a net loss of $253,000 for the same period a year ago.
Turnover dropped 10 per cent over the quarter to $1.39 billion from $1.54 billion.
The results have led Merisel to revise its expectations, stating it will return to profitability - if not by year end, then within the next six months.
The loss included $33.5 million on the sale of Merisel's Latin, European and Mexican operations, plus a $1.2 million operating loss from these subsidiaries. The company also lost $40 million on an asset impairment valuation adjustment to its Computerland franchise and Datago Aggregation business.
Merisel chairman and CEO Dwight Steffensen said: 'We spent the first nine months of 1996 operating the business to conserve cash. Now we can turn our focus from conserving cash to profitable growth.'
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