parent company, PC Mall, has reported consolidated net income for the quarter ending March 31, of US$0.4 million or $0.03 per share on sales of $192 million.
This compares with the prior year’s first quarter earnings of $0.12 per share on sales of $198 million. The quarter’s earnings and sales were impacted by a 54 percent increase in backorders of recently introduced products that weren’t delivered in time to be reflected in the most recent financial results, according to Frank Khulusi, chairman, president, and CEO of PC Mall.
Adjusting for backordered products, sales would have been essentially flat with the prior year and earnings per share would have been $0.02 higher than reported, said Khulusi. Sales for the quarter as reported increased 9 percent from the fourth quarter, but dipped 3 percent from the first quarter of 2001. Still, this is PC Mall’s sixth consecutive profitable quarter.
Consolidated gross profit for the first quarter of 2002 declined to 10.4 percent of sales from 11.1 percent of sales in quarter one of 2001. PC Mall’s cash position remained strong. For the most recent financial quarter, the company produced cash from operations of $2.8 million and EBITDA (a non-gaap measure of earnings before interest, tax, depreciation and amortization expenses) of $1.7 million. Cash at the end of the quarter increased to $11.1 million, and borrowings on the working capital facility were $1.2 million.