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Systemax shows mixed results

CompUSA, a Systemax brand

CompUSA, a Systemax brand Credit: Handout

The Port Washington-based electronics firm Systemax Inc., operator of the revived CompUSA retail chain and the Circuit City and TigerDirect online sites, showed a double-digit fall in direct-to-consumer sales in its most recent earnings report.

The decline in its computer sales mirrors a global shift away from consumer purchases of desktop and laptops, as smaller mobile devices prevail.

Overall, though, Systemax profit and sales both increased, the company said in a quarterly report for the period ending Sept. 30.

During the quarter, Systemax said it had $10.6 million profit on $901.2 million in sales compared to the year-ago quarter's $8.6 million profit on $862.7 million in sales.

Its retail sales decline, to $393 million from $427.5 million, was offset by higher profits in sales to business and industry during the quarter.

Systemax's sales to business and industry were $508.2 million, up from last year's $435.2 million.

The longtime operator of the TigerDirect.com brand, Systemax in recent years bought the defunct CompUSA brand and revived it on a modest scale with 36 brick-and-mortar stores, mostly in Florida and Texas. It also bought the Circuit City brand, reviving it as an online-only operation.

The company's new earnings report highlighted its thin margins, listing its net profit margin as improving to 1.2 percent up from 1 percent in the prior-year quarter.

With 5,600 workers and a market capitalization of $518 million, Systemax shares are up 6.4 percent in the past year; it had a $50.4 million profit during that year, on $3.67 billion in sales.

By midday Wednesday, shares of Systemax were down a penny at $14.04. 

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