PC Mall Inc. generated $1.38 billion in net sales during 2008, up from $1.22 billion in 2007. But the company’s net income slipped from $12.4 million to $9.6 million, largely due to a $4.1 million goodwill impairment charge. The year ended Dec. 31.
Within the company’s operating units, the SMB segment, which serves small and medium-sized businesses, saw its sales drop from $556.5 million in 2007 to $486.9 million in 2008. PC Mall attributed part of the drop to softening in IT spending and a decline in iPod sales. The SMB unit’s operating profit fell from $34.2 million to $29.5 million.
MME operations, which sell to mid-market enterprises, saw sales rise from $238.5 million to $426.1 million, while operating profit jumped from $7.4 million to $18.4 million. The increase in profit was due to “a change in product mix which resulted in increased vendor consideration,” according to notes that accompanied the company’s financial release.
Two large customers within PC Mall’s public sector unit cut their purchases during the year. This damped the unit’s sales, which barely ticked upward from $157 million to $161.4 million. And operating profit actually slipped, from $4.7 million to $2.2 million.
Sales and income both slipped for consumer spending. This unit, which harvested $265.5 million in 2007 pulled in $253.5 million in 2008, while its operating profit fell from $11.6 million to $7.5 million.
The company sells a variety of technology offerings through a number of branded catalogs and Web sites, as well as through three retail outlets.
