Systemax posts higher 3Q profit, sales

AP News
Posted: Nov 10, 2009 5:00 PM

Systemax Inc., which sells computers, electronics and industrial products online, said Tuesday its third-quarter profit grew 12 percent as sales to consumers increased even as sales to businesses inched lower.

The company earned $12.6 million, or 34 cents per share, up from $11.3 million, or 30 cents per share, in the same period a year earlier. The latest quarter's results included charges of 2 cents per share for costs related to an acquisition and the company's exit of its Hosted Software business.

Revenue rose 2 percent to $753.9 million from $739.5 million.

The quarter's gross margin was 15 percent, down from 15.6 percent in the same period a year earlier.

Chairman and CEO Richard Leeds said the quarter's overall results were solid.

"We did see some erosion in overall gross margin, resulting from the continued impact of discounted shipping and product mix changes; however gross margin for the quarter was up sequentially," he added.

Shares rose 76 cents, or 5.4 percent, to $14.80 in after-hours trading. The stock had closed down 10 cents at $14.04 in the regular session.