Systemax has insisted it is taking proactive steps to improve its business after it posted an $11.6m (£7.23m) loss in its third quarter.
For the three months to 30 September, the parent firm of UK reseller Misco posted a net loss of $11.6m – compared to a profit of $14m last time around – on sales which also slumped, down 6.5 per cent annually to $791.8m. The Q3 results take its nine-month total net income loss to $24m.
In Europe, its sales shrank 4.3 per cent overall, and 6.1 per cent on a constant-currency basis. Its French, Dutch and Irish businesses posted modest revenue growth in Q3, Systemax said, but the good work was undone by the UK which suffered a single-digit sales slump as well as other, smaller markets which suffered double-digit declines.
Its B2B channel sales crept up 0.2 per cent annually in Q3 to $528.3m, but on a constant-currency basis, the figure was actually down 0.5 per cent. Its consumer arm's sales dropped 17.5 per cent to $263.5m over the same period.
Despite the poor quarter, Systemax chairman Richard Leeds said the company was taking action to return to profitability.
"In summary, we're not satisfied with our financial results and are taking proactive steps to improve our business performance," he said on an earnings call transcribed by Seeking Alpha.
"Our entire team remains focused on driving operating efficiencies, rightsizing our operations and executing on our sales and growth initiatives, with the goal of continued expansion of consolidated profitability and returning our technology businesses to the historical profitability levels.
"We continue to make investments in key areas of the business, which we believe enhances our long-term performance. Our balance sheet is very strong, with more than $173m of cash. We are well positioned to execute on our strategic plan."
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