PORT WASHINGTON, N.Y., Dec 14, 2005 (BUSINESS WIRE) -- Systemax Inc.a leading manufacturer and distributor of PC hardware, related computer products and industrial products in North America and Europe, today announced results for its six months and second fiscal quarter of 2005 ended June 30, 2005. The Company's results included in this release have not been reviewed by independent registered public accountants. However, management of the Company believes that the attached condensed consolidated financial statements accurately reflect the results of operations and financial condition of the Company for the period.
Net sales for the second quarter ended June 30, 2005 increased 15.9% to $502.2 million from $433.3 million in the year-ago quarter. Sales in North America increased 19.3% to $330.2 million from $276.7 million in the same period last year, with more than 50% of the growth coming from increased internet sales. Sales in Europe increased 9.9% to $172.0 million from $156.5 million in last year's second quarter. Approximately forty percent of the increase in European sales was attributable to favorable exchange rates. Gross profit increased 5.0% to $70.9 million from $67.5 million in last year's second quarter, or 14.1% of net sales compared to 15.6% of net sales in the year-ago period. The decrease in gross profit percentage was primarily attributable to continued competitive pricing pressure in both the North American and European computer and related products marketplaces and increased warehouse-related costs. Net income was $1.2 million ($.03 per diluted share) compared to $62,000 ($.00 per diluted share) in the same period a year ago. Results include pretax restructuring and other charges incurred in the Company's European operations of $1.1 million in 2005 compared to $1.0 million last year. Net income excluding the effects of the restructuring and other charges would have been $1.9 million ($.05 per diluted share) compared to $0.6 million ($.02 per diluted share) last year. (A reconciliation between income from operations, as reported in accordance with GAAP, and pro forma net income, excluding the adjustments discussed above, has been provided.)