Systemax enjoys solid Q3

Misco's US parent company's still making profit with revenue growth in high single digits

Misco owner Systemax has hailed the success of its recently acquired CompUSA brand after posting solid results for 2008's third quarter.

Revenue for the three months to the end of September was up 7.6 per cent on Q3 2007 to $739.5m (£468m). Net profit was down 36.1 per cent to $11.3m while operating margin fell from 3.8 to 2.5 per cent year on year.

For the whole first nine months of the year revenue was up 10.4 per cent on 2007 to $2.2bn. Net profit declined 5.3 per cent to $42.9m and operating margin fell two-fifths of a point to three per cent. Systemax bought the CompUSA brand last year and chief executive Richard Leeds claimed it had been instrumental in his company's robust Q3 performance.

“The company delivered solid financial results despite further deterioration in consumer spending and more specifically in IT spending. Our ability to grow third quarter top line revenue by 7.6 per cent in this challenging environment is a testament to the strength of our brands, retail footprint, industry leading e-Commerce sites and geographic exposure," said Leeds.

"We continue to make investments in our operations to ensure that we maintain our market position while further positioning the Company to maximise profitability when the economy normalises. This includes adding 18 new stores this year, most under the CompUSA brand, as well as making continuous investments to enhance our e-Commerce sites.

Leeds added: “With an expanded retail presence now established we will have higher fixed costs, but we are in an excellent position to generate leverage on that base as the new stores build scale.”

Gilbert Fiorentino, chief executive of Systemax’s technology products segment, added: “The Technology Products Group performed better than the overall industry in the third quarter as our North American and European operations continue to benefit from ongoing enhancements to our online and in-store operations.