Electronics retailer Systemax reports $6.3M loss in first quarter
Electronics retailer Systemax Inc. Tuesday reported a $6.3-million loss for the first quarter as its retail sales of computer accessories and software dipped. A year earlier, the Port Washington company earned $7.1 million.
Revenue fell to $880.7 million during January, February and March, down 4 percent from the same period last year, said the company, which sells computers, other consumer electronics and industrial products in North America and Europe.
Richard Leeds, the company's chairman and chief executive, said the results were an improvement from the fourth quarter, when Systemax lost $27.1 million.
"However, an operating loss, no matter how small, is still unacceptable to us and we are working diligently to improve the business," Leeds said in a statement announcing the results.
The company increased sales in its largest product category, computers, by 5 percent, to $275.1 million. But the next largest, computer accessories and software, saw revenue drop 8 percent, to $239 million.
At the end of March, the company had $134.7 million in cash, down 11 percent from three months earlier.
The company employs about 5,300 people globally, including 300 on Long Island. It sells products online and in retail stores under the name TigerDirect, which has locations in Florida, Texas, Illinois and several other states.
In late 2012, Systemax discontinued its other retail brands, CompUSA and Circuit City, to consolidate sales under TigerDirect, resulting in a $35.3-million write-off. The company also exited the PC manufacturing business last year.
Systemax shares are down 10 percent this year. They closed at $9.16 a share, down 3 cents, in New York Stock Exchange trading Tuesday. The company released its earnings after the close of regular trading.