Merisel bucks the local trend and continues to grow as profits look to get ready to soar.

Merisel Inc. is literally outgrowing itself. Flanked by aerospace companies in El Segundo that have been cutting back, the computer software and hardware distributor expects a huge increase in sales revenue next year.

"Probably the most difficult thing we're going through right now is almost a constant reconfiguring of the office space to make more room for everybody. People are always moving. Right now we're moving around one whole floor," said Catherine Quattrocchi, a company spokeswoman.

Beyond the space problem, however, company officials said recently that when Merisel's proposed acquisition of retailing giant ComputerLand Inc. is completed, sales should skyrocket.

Company executives are cautious in projecting next year's revenue but some unofficial estimates from Merisel representatives are that 1994 sales could about triple compared with 1992, when Merisel reported $2.2 billion in annual sales revenue. The company expects 1993 annual sales of about $2.9 billion.

Net income, which in 1992 totaled more than $29.2 million or 67 cents a share, is also expected to increase significantly next year, albeit at a slower pace than sales.

Financial analysts that follow Merisel on the NASDAQ market also project a big jump in sales but are more cautious than company officials. The analysts said sales revenue should increase by at least $1 billion, or roughly 50 percent, mainly because of the ComputerLand acquisition. Merisel executives said the ComputerLand deal should be completed by the end of the year.

In its third quarter statement for the period ended Sept. 30, Merisel reported sales of $731 million, a 32 percent increase from the same 1992 period, and a 73 percent rise in net income -- to $6.1 million.

"Merisel and the other leading distributors are positioned very well," said Shelby Fleck, an industry analyst with Morgan Stanley & Co., a financial services company based in New York. "All the major manufacturers are going to continue to go through distributors rather than direct to end users. And the three market leaders in distribution are going to continue to grow."

Merisel competes with Ingram Micro Inc. in Santa Ana, Calif., and Tech Data Corp. in Clearwater, Fla., in the worldwide computer hardware and software distribution business. Ingram Micro is considered the industry leader with a projected $3.9 billion in sales in 1993. Merisel is in second place, followed by Tech Data with about $1 billion in sales.

The three are wholesalers of computer hardware and software and distribute manufacturers' equipment to what in the computer industry are known as resellers. Resellers are businesses that sell computer products directly to commercial or individual users.

Earlier this year Merisel announced its intention to buy the franchise and distribution division of ComputerLand, a retailer that in 1992 had revenues of $2 billion. The proposed deal, valued at about $800 million, also includes the formation of a strategic alliance with ComputerLand in which Merisel will become the exclusive distributor for the remaining ComputerLand stores.

Michael Pickett, Merisel's co-chairman and chief executive officer, declined to project a tripling of the company's sales but said he expects revenue to increase between 30 percent and 40 percent in 1994 from 1993.

"That's what we've been growing (30 percent to 40 percent) at quarter to quarter and I expect that will continue. I really can't go much beyond that because we are a public company and we have to be cautious about our projections," he said.

Pickett, 46, explained that competitive pressures and the growing number of computer users have forced manufacturers to sell their products through distributors.

"It's just more cost effective for them to use distributors," he said. "Prices of computers have dropped and that means manufacturers are cutting costs. They can no longer support large sales staffs."

Currently, Merisel distributes roughly 20,000 computer hardware and software products made by 700 manufacturers to 55,000 resellers in 11 countries, including the United States.

Pickett and other Merisel officials said one reason for the company's success is it is easier for distributors than manufacturers to enter new markets. One potentially rich and untapped region is Asia, particularly China. Pickett said the company is now working on deals to get Merisel into China, Japan and other Asian countries.

Merisel's expansion has caused severe growing pains at its El Segundo headquarters, said Pickett. Its five-story structure is bursting at the seams, as are three floors of an adjacent building that once housed Hughes Aircraft Co. workers.

A year ago Merisel had about 1,800 workers but it now has 2,500 and in a year the number could grow to 3,000.

"We're going to stay here (in Southern California) but we're going to need more space. I don't know what we're going to do yet," said Pickett.