Financial Reports: CDW, RedEnvelope

Record 4Q, Year for CDW
Vernon Hills, IL-based computer reseller CDW (Nasdaq: CDWC) continues to churn out double-digit growth on the top and bottom line.

Fourth-quarter sales increased 12%, to $1.5 billion for the three months ended Dec. 31. Net income grew 41%, to $62.7 million from $44.6 million. Direct Web sales–conducted without the assistance of a customer service rep–hit $389 million for the quarter, a 29% increase from the previous fourth quarter.

For the year ended Dec. 31, net sales hit $5.7 billion, a 23% increase over 2003. Net income jumped 38% for the year. Direct Web sales topped $1.5 billion for the full year, a whopping 44% increase over the previous year.

Strong Holiday Quarter for RedEnvelope
San Francisco-based gifts cataloger RedEnvelope (Nasdaq: REDE) enjoyed a 33% jump in sales and a 135% leap in net income for its fiscal third quarter. For the three months ended Dec. 26, it netted $2.8 million on revenue of $47.5 million. For the previous third quarter, RedEnvelope had reported net income of $1.2 million on sales of $35.9 million.

The increase came despite weather-related fulfillment problems. Citing “hazardous road conditions,” many employees could not make it to work on Dec. 22 and Dec. 23, which resulted in about $800,000 of orders being delivered after the quarter ended. Because the company recognizes revenue when the goods are delivered, not shipped, the $800,000 will be recognized as fiscal fourth-quarter net revenue.

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