Systemax Announces Intent to Restate 2004 Results
May 11 2005 - 10:17AM
Business Wire
Systemax Inc. (NYSE:SYX), a leading distributor and manufacturer of
PC hardware, related computer products and industrial products in
North America and Europe, announced today that it will restate its
results for the year ended December 31, 2004 following the
discovery of errors in accounting for inventory at its Tiger
Direct, Inc. subsidiary. The Company is currently reviewing its
records to determine which quarters in 2004 were affected and
whether the accounting errors may also have affected periods prior
to 2004. Investors are cautioned not to rely on such historical
financial statements. The Company, upon completion of its review,
will restate its historical results for the affected period or
periods. The Company presently has no estimate for completion of
its review but does not believe that such review will extend beyond
the end of May. When the review is complete, the Company will file
an amendment to its Form 10-K for 2004 and release its first
quarter results. It is presently anticipated, assuming no earlier
periods are affected, that net income for the full year ended
December 31, 2004 (previously reported as $12.6 million or $.35 per
diluted share) will be reduced to a range of approximately $9.0 to
$9.6 million or $.25 to $.27 per diluted share. As previously
disclosed in the Company's annual report on Form 10-K for the year
ended December 31, 2004, Systemax is not currently required to
comply with Section 404 of the Sarbanes-Oxley Act. The Company has
disclosed that it has identified a number of internal control
deficiencies that may affect the timeliness and accuracy of
recording transactions which have not yet been remediated. The
Company is devoting resources to improving its internal controls
over financial reporting and accounting for inventory in order to
prevent such errors from occurring in the future. Systemax Inc.
(wwwsystemax.com) utilizes an integrated system of branded
e-commerce web sites, direct mail catalogs and relationship
marketers to sell PC hardware, related computer products and
industrial products in North America and Europe. Systemax is a
Fortune 1000 company. Forward-Looking Statements This press release
contains forward-looking statements about the Company's
performance. These statements are based on management's estimates,
assumptions and projections and are not guarantees of future
performance. The Company assumes no obligation to update these
statements. Actual results may differ materially from results
expressed or implied in these statements as the result of risks,
uncertainties and other factors including, but not limited to: (a)
unanticipated variations in sales volume, (b) economic conditions
and exchange rates, (c) actions by competitors, (d) the
continuation of key vendor relationships, (e) the ability to
maintain satisfactory loan agreements with lenders, (f) risks
associated with the delivery of merchandise to customers utilizing
common carriers, (g) the operation of the Company's management
information systems, and (h) unanticipated legal and administrative
proceedings. Please refer to the Forward Looking Statements section
contained in Item 7 of the Company's Form 10-K for a more detailed
explanation of the inherent limitations in such forward-looking
statements.
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