PC Mall Posts Unexpected 4Q Loss

PC Mall (No. 54 on the VARBusiness 500) checked in with a surprising fourth-quarter loss for analysts who, according to Thomson First Call, were expecting income of 25 cents per share. An earlier check of its stock price shows that investors took the news hard, with shares dropping more than 14 percent to $2.23. PC Mall does not provide earnings guidance.

The company blamed software write-offs and consulting fees specific to the Sarbanes-Oxley Act for the dip into the red seas. Quarterly sales rose 12 percent to $325.4 million.

The Torrance, Calif.-based reseller/retailer lost $42K for the quarter, essentially a break-even, for its fourth quarter, down substantially from earnings of $1.1 million, or 9 cents per share, during the year-ago period. Net sales increased 12 percent to $325.4 million, against $289.9 million.

For the fiscal year, earnings dropped 66.6 percent to $1 million, or 8 cents per share, compared to $3 million, or 26 cents per share.