Sales for Vernon Hills, IL-based computer marketer CDW Corp. (Nasdaq: CDWC) increased 6%, to $1.223 billion for the quarter ended Sept. 30, compared to $1.150 billion the company did for the same period last year. Included in the third quarter results were $42.9 million of sales from Micro Warehouse.
CDW’s net income fell 19%, to $44.6 million, compared with $54.9 million last year due in part to transaction and integration costs relating to its Sept. 9 purchase of the North American assets of Micro Warehouse. Total expenses associated with the Micro Warehouse transaction are expected to reach $16 million, with $8 million in the third quarter and about $8 million in the fourth quarter. The company says these expenses are primarily from severance and outplacement costs, and payroll expenses for former Micro Warehouse employees performing transition services, customer satisfaction expenses, customer communications and advertising expenses, and legal and accounting advisory fees.
Direct Web sales—those processed without the aid of a customer service rep—increased 25% to $281.4 million, compared with $224.4 million last year.
Third quarter corporate sector sales, including Micro Warehouse, were $878.4 million. Last year, corporate sales totaled $869.1 million. Average daily corporate sector sales were $13.7 million, representing a 1% increase over last year. Included in the third quarter 2003 corporate sector sales were $24.5 million from Micro Warehouse, representing 2.8% of the year-over-year change.
Third quarter public sector sales, including Micro Warehouse, were $344.4 million, up 22% from $281.8 million last year. Average daily public sector sales were $5.4 million, representing a 22% increase over last year. Included in the third quarter public sector sales were $18.4 million from Micro Warehouse, representing 6
.5% of the year-over-year increase.