Micro Warehouse Acquisition Nibbles at CDW Income

Despite a 9% increase in annual sales, Vernon Hills, IL-based computer reseller CDW saw net income slide 5%. But that decline was due to costs from its September acquisition of North American assets of cataloger Micro Warehouse, which accounted for a $22.3 million bite into the bottom line.

For the year ended Dec. 31, CDW netted $175.2 million on sales of $4.7 billion. For 2002, the cataloger had reported net income of $185.2 million on $4.3 billion in revenue.

Fourth-quarter sales rose 18%, to $1.3 billion from $1.1 billion. Net income slipped 2%, to $44.6 million from $45.5 million the previous year.

Direct Web sales—completed without the assistance of a customer service rep—for the quarter soared 40%, $301.0 million from $214.6 million in 2002. For the year, CDW’s direct Web sales jumped to $1.1 billion from $829.2 million the previous year.