PC Mall roared out of the gate in the first quarter with strong gains in revenue and net income.
The Torrance, CA-based computer marketer reported revenue of $235 million, a 23% hike over the next year. But only 5% of this was due to organic sales growth. The remaining 18% was due to acquisitions.
Net income totaled $292,000, compared with a net loss of $6.4 million during the first quarter of 2002.
Meanwhile, the company reported mixed results from its various sales channels.
Catalog sales plummeted by 13% because of unfilled back orders of new products and weak demand, the company said. But outbound sales grew by 15%, sales from eCost.com by 12% and revenue from PC Mall Gov by 2%.
CEO Frank Khulusi said in a statement that the firm plans to expand its outbound sales force as part of an effort to build market share.
Advertising expenses rose to $4.1 million during the quarter, compared with $498,000 during the same period last year.
As the result of a new rule, roughly $3.6 million of vendor consideration that previously was recorded as reduction of advertising and labor costs had to be reported as a decrease in the cost of sales.
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