Systemax

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Systemax, Inc.
Type Public[1]
Traded as NYSE: SYX
Industry Computer hardware
Founded 1949 (1949)
Headquarters Port Washington, New York, U.S.
Area served Nationwide
Key people
  • Richard Leeds (CEO)
  • Larry Reinhold (CFO)
Revenue IncreaseUS$3.68 billion (2011)[2]
Divisions Systemax PC
Subsidiaries
Website systemax.com
A Systemax Venture PC
Systemax, Inc., is an American Fortune 1000 company based in Port Washington, New York that sells personal computers, computer supplies, consumer electronics and industrial products through multiple e-Commerce web sites and retail stores, as well as through relationship marketers and direct mail catalogs that are circulated in North America and Europe.[3] It also operates ComputerTV, an online video channel, and manufactures and sells computers and accessories under the Systemax and Ultra brands.[4]

The company was founded in 1949 as Global Equipment Company, a materials handler. It first entered direct marketing in 1972 and began marketing computer equipment in 1981. It changed its name to Global Directmail in 1995 and to Systemax in 1999.

Subsidiaries and Divisions

Subsidiaries and divisions of Systemax, Inc. include SystemaxPC, TigerDirect, CompUSA, Circuit City, Global Industrial, Nexel, Misco, Infotel, Global Computer Supplies, SpeedGifter and Worldwide Rebates.[5]

Acquisition of CompUSA

On January 6, 2008, Systemax Inc. announced an agreement on the acquisition of the Miami-based CompUSA brand, trademarks, and e-commerce business, and as many as 16 CompUSA retail outlets in Florida, Texas, and Puerto Rico.[6] The first new CompUSA store under Systemax ownership was opened in November 2009.

In late December 2012, CompUSA was consolidated into TigerDirect.[7]

Acquisition of Circuit City trademarks and website

On May 13, 2009, Circuit City announced it would sell its intellectual property, including its trademarks, brand name, and internet domain, to Systemax for $14 million.[8] The deal took effect six days later. The defunct CircuitCity.com website was restored after the Systemax purchase.

In late December 2012, Circuit City was consolidated into TigerDirect.[7]

SEC Investigation

On September 17, 2012, the U.S. Securities and Exchange Commission charged a former director of Systemax Inc for fraudulently reaping hundreds of thousands of dollars in undisclosed compensation between January 2006 to December 2010. The SEC alleged that Gilbert Fiorentino, who in addition to serving on the board was the former chief executive of Systemax’s Technology Products Group in Miami, "obtained more than $400,000 in extra compensation directly from firms that conducted business with Systemax." The SEC also alleged Fiorentino of stealing "several hundred thousand dollars worth of company merchandise that was used to market Systemax’s products." Fiorentino failed to disclose his extra compensation and perks to Systemax or its auditors, so that the amounts reported to shareholders were understated.[9]

In April 2011, Systemax placed Fiorentino on administrative leave. On May 9th 2011, Fiorentino agreed to resign from all of his positions with Systemax, surrender stock and stock options valued at approximately $9.1 million, and repay his 2010 annual bonus of $480,000. With Fiorentino's departure, Robert Leeds, Systemax's founding CEO of the technology division, took over as CEO of Systemax's technology products group.[9][10]

Fiorentino agreed to settle the SEC charges by paying a $65,000 fine and consenting to a permanent bar from serving as an officer or director of any publicly held company.[9]

Restatement

On February 21, 2005, the company restated financial results for each of the first three quarters of 2004 and the year ended Dec. 31, 2003, following the discovery of certain inventory accounting errors at the company's British unit.[11] On May 11, 2005, the company restated its results for the year 2004, following the discovery of errors in accounting for inventory at its Tiger Direct Inc. unit, an online retailer.[12]

See also

References

  1. ↑ Systemax - Stockholder Info
  2. ↑ http://syx.client.shareholder.com/releasedetail.cfm?ReleaseID=652428
  3. ↑ http://finance.yahoo.com/q/pr?s=SYX
  4. ↑ http://www.e-gear.com/article/the-systemax-affiliated-web-site-computertv-has-launched-rock-your-quad-bus-tour-13-systemaxs-compusa-retail-locations-throughout-florida-409830_1.html
  5. ↑ Systemax - Subsidiaries and Divisions
  6. ↑ "Systemax Announces Definitive Agreement to Acquire Selected Assets and Retail Stores from CompUSA". Systemax. 6 January 2008. Retrieved 16 December 2009. 
  7. ↑ 7.0 7.1 http://www.twice.com/articletype/news/systemax-cut-circuit-city-compusa-brands-exit-pc-manufacturing/103788
  8. ↑ "Firm buys defunct Circuit City’s brand, domain names"
  9. ↑ 9.0 9.1 9.2 "SEC Charges Former Systemax Director in Compensation Scheme". U.S. Securities and Exchange Commission. Retrieved 2013-07-22. 
  10. ↑ "Systemax exec resigns, must hand over $11 million". CNET. Retrieved 2013-07-22. 
  11. ↑ "Systemax to restate 2003 results". 
  12. ↑ "Systemax Announces Intent To Restate 2004 Results". 

External links

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