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.'
CEO claims the firm is set to make 'bold acquisitions in the very near feature'
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