Private investment firm Comvest Partners acquires the financially troubled e-retailer, which filed for Chapter 11 bankruptcy protection in March.
Web sales at Systemax, parent of TigerDirect.com, grew to $238 million in Q1, up 19% compared to $200 million in the same quarter of 2006. The web continues to beat overall sales growth.
Systemax Inc., parent of TigerDirect.com, reported Internet sales for the first quarter of 2007 of $238 million, up 19% from $200 million in the same quarter of 2006. Web sales growth was slightly ahead of overall sales, which grew 18% to $676 million compared to $575 million in the first quarter of 2006.
Systemax, which is No. 24 in the Internet Retailer Top 500 Guide, saw 2006 web sales grow 26% vs. 2005, to $819 million from $650 million. 2006 companywide sales were up about 10% to $2.3 billion from $2.1 billion.
Web sales comprised 35% of Systemax’s total Q1 sales. Overall, sales of technology products including computers, computer supplies and consumer electronics grew by 18% and sales of industrial products grew by 16%.
“We again experienced strong sales growth in both the North American and European markets. North American technology product sales grew 12% in the first quarter, driven primarily by growth in Internet sales and our private label products. European sales grew 28% overall, 15% after taking into account exchange rate effects, in the first quarter driven primarily by growth in Internet sales and public sector customers,” says Gilbert Fiorentino, CEO of TigerDirect.com and the technology products segment.
Operating income was up 3% to $21.5 million compared to $20.9 million in Q1 2006. Net income was down 21% to $13.9 million, compared to $17.6 million in the prior year first quarter.