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Systemax reports $2.2 million loss in 2Q

Port Washington-based electronics retailer Systemax Inc. has reported

Port Washington-based electronics retailer Systemax Inc. has reported a $2.2 million second-quarter loss. (Jan. 23, 2002) Photo Credit: Newsday / Nelson Ching

Port Washington-based electronics retailer Systemax Inc. reported a $2.2 million second-quarter loss as its consumer sales continued to slide. A year earlier it earned $15.6 million.

Revenue fell to $849.5 million during the April, May and June quarter, down 2.6 percent from the same period last year, said the company, which sells computers and other consumer-electronics and industrial products in North America and Europe.

"The industry is facing a number of cyclical challenges, including soft demand and shifting consumer habits," said Richard Leeds, the company's chairman and chief executive.

During a call with investors late Tuesday, Leeds attributed the lackluster sales to several issues. They included a sluggish economy and the upcoming October launch of Microsoft's Windows 8 operating system, which Leeds said is prompting consumers to put off buying new computers.

Aside from waning revenue, Systemax's bottom line was hit by other multiple factors. Selling, general and administrative expenses rose 3 percent, to $117.8 million. The company's tax rate climbed seven points, to 37.7 percent. And the company incurred one-time charges of $2.2 million, compared with a one-time gain of $7.2 million a year ago.

The company, Long Island's 15th largest by stock market value, sells products online and in retail stores under the names Circuit City, CompUSA and TigerDirect.com.

Systemax shares have dropped 26 percent so far this year. They closed at $12.47 a share, down 7 cents, in New York Stock Exchange trading Tuesday. The company released its earnings after the close of regular trading.

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