Gee, this is one rockin' thread. The company is reasonably interesting, so there must be something to discuss about it...|
I couldn't resist the price drop today; I bought back in at 10 even. Hopefully I'll be able to duplicate my success when the company was GML.
Here's why it dropped:
Systemax 2Q99 Net Sales & Profit Update
Business Wire - June 21, 1999 17:40
PORT WASHINGTON, N.Y.--(BUSINESS WIRE)--June 21, 1999--Systemax Inc. (NYSE: SYX) said net sales for the second quarter ended June 30, 1999 are expected to increase 15-20% to $380-$395 million in line with analysts' estimates due to better than anticipated PC, Internet and Relationship Marketing sales offsetting slower than anticipated sales of higher-margin computer and industrial products.
This change in forecasted product mix, and its lower gross profit, would have resulted in net income of approximately $0.18 to $0.20 per share. The Company also expects to incur charges of approximately $6 million, equal to $0.10 per share, related to the write-down of various assets and certain non-recurring expenses, for the June quarter. The Company's anticipated results for the June quarter compare to analysts' consensus of $0.31 per share and actual EPS of $0.22 in the year ago second quarter. Actual results are scheduled to be announced July 29, 1999.
For the past year, Systemax has been remaking itself, rapidly building PC, Internet and Relationship Marketing sales volume, coupled with tight cost control, atop its older base of Inbound Catalog sales of computer and industrial supplies. "It is clear we are moving in the right direction, but it will take additional time for our impressive sales growth to reach the bottom line," said Richard Leeds, Chairman and CEO.
To help ensure profit growth, Mr. Leeds said he and CFO Steve Goldschein would review 1999 spending plans to ensure maximum operating leverage. In the interim, Mr. Leeds said the Company will continue to buy back shares in the open market using the Company's remaining 1.75 million share buyback authorization.
Systemax Inc. (www.systemax.com) has developed an integrated system of branded e-commerce web sites, direct mail catalogs, and relationship marketing to sell private label and name brand PC hardware, related computer products, and industrial products to businesses in North America and Europe. With more than $1.5 billion in sales, Systemax is a Fortune 1000 company that is listed on the NYSE and traded under the symbol SYX.
Investor Relations Director
Hudson Stone Group