MERISEL REPORTS RECORD SALES IN FIRST QUARTER
MERISEL REPORTS RECORD SALES IN FIRST QUARTER EL SEGUNDO, Calif., April 28 /PRNewswire/ -- Merisel Inc.
(NASDAQ: MSEL) today reported net income of $4,140,000 or $.16 per share for its first quarter ended March 31, 1992, up from $518,000 or $.02 per share in the first quarter of 1991. Net sales were up by more than 34 percent from the same period in 1991, increasing to $487,103,000 in the first quarter 1992 from $364,636,000 in the first quarter of 1991 and $466,871,000 in the fourth quarter of 1991.
"We continue to achieve record sales," said Merisel President and Chief Executive Officer Michael D. Pickett. "Sales growth was particularly strong in the U.S., Europe and Latin America, due primarily to increased penetration into certain customer segments and new product offerings which spurred increased customer demand worldwide." "Operating expenses as a percentage of sales decreased from the same period of the prior year. Operating expenses increased slightly from the fourth quarter of 1991, due to a one-time charge to consolidate our East Coast facilities and our increase in sales volume. We will continue to focus on controlling costs throughout the year, and will particularly be focused on increasing profitability of our foreign subsidiaries." In the first quarter, Merisel successfully completed a secondary stock offering which raised $55,700,000 to reduce short-term bank borrowings. The company signed a distribution agreement with Apple U.S.A. to sell the manufacturer's complete product line into the value- added reseller channel in the United States. Merisel France began distribution of IBM PS/1 systems and PS/2 notebook computers to dealers in France. Merisel Europe signed its first pan-European distribution agreement with Novell. In addition, Merisel's Consumer Products division continues to expand its list of mass merchants with the addition of two membership warehouse clubs, Sam's Wholesale Club and B.J.'s Wholesale. MERISEL INC. AND SUBSIDIARIES SUMMARY OPERATING RESULTS (In thousands except per share amounts) Three months ended March 31, 1992 March 31, 1991 Net sales $487,103 $364,636 Gross profit 46,442 36,265 Income before tax 7,441 1,842 Net income 4,140 518 Net income per share .16 .02 Weighted average shares outstanding 26,357 24,840 Merisel Inc. is the world's largest publicly held distributor of microcomputer hardware and software products. This company presently stocks products from more than 700 manufacturers for sale to 50,000 resellers worldwide. The company currently maintains 16 distribution centers that serve North America, Europe, Latin America and Australia. Merisel sells more than 10,000 products worldwide and offers a wide range of services to support resellers with the sales of these products. -0- 4/28/92 /CONTACT: James Brill, CFO, 310-615-1259 or Cathy Quattrocchi, 310-615-1230, both of Merisel/ (MSEL) CO: Merisel Inc. ST: California IN: CPR SU: ERN
EH-KJ -- LA012 -- 3575 04/28/92 09:03 EDT
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|Date:||Apr 28, 1992|
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