Computer and industrial supplies manufacturer/marketer Systemax (NYSE: SYX) posted net income of $653,000 for 2001, compared with the $40.8 million net loss it suffered in 2000. The turnaround came despite an 8% drop in net sales, to $1.5 billion.
For the quarter ended Dec. 31, Systemax earned $2.6 million, compared with the net loss of $9.5 million for the previous fourth quarter. The Port Washington, NY-based company says a $2 million liability it recorded last year is no longer required, thus inflating fourth-quarter net income.
“The extremely competitive conditions in the PC marketplace and overall economic conditions contributed to lower sales and pressure on margins. We are continuing to bring our costs in line with the decreased level of business in North America,” chairman/CEO Richard Leeds said in a statement. He added that Systemax continues to be able to compete on price with its Systemax-brand PCs.