Circuit City 2006 Annual Report Download - page 4

Unless otherwise indicated, all references herein to Systemax Inc. (sometimes referred to as “Systemax,” the
“Company” or “we”) include its subsidiaries.
Forward Looking Statements
This report contains forward looking statements within the meaning of that term in the Private Securities Litigation
Reform Act of 1995 (Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934).
Additional written or oral forward looking statements may be made by the Company from time to time, in filings with the
Securities and Exchange Commission or otherwise. Statements contained in this report that are not historical facts are
forward looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of
1995. Forward looking statements may include, but are not limited to, projections of revenue, income or loss and capital
expenditures, statements regarding future operations, financing needs, compliance with financial covenants in loan
agreements, plans for acquisition or sale of assets or businesses and consolidation of operations of newly acquired
businesses, and plans relating to products or services of the Company, assessments of materiality, predictions of future events
and the effects of pending and possible litigation, as well as assumptions relating to the foregoing. In addition, when used in
this discussion, the words “anticipates,” “believes,” “estimates,” “expects,” “intends,” and “plans” and variations thereof
and similar expressions are intended to identify forward looking statements.
Forward looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or
quantified based on current expectations. Consequently, future events and results could differ materially from those set forth
in, contemplated by, or underlying the forward looking statements contained in this report. Statements in this report,
particularly in
“Item 1. Business,” “Item 1A. Risk Factors,” “Item 3. Legal Proceedings,” “Item 7. Management’s
Discussion and Analysis of Financial Condition and Results of Operations,
” and the Notes to Consolidated Financial
Statements describe certain factors, among others, that could contribute to or cause such differences.
Item 1. Business.
General
Systemax is a direct marketer of brand name and private label products. Our operations are organized in three primary
reportable business segments – Technology Products, Industrial Products and Hosted Software. Hosted Software became a
reportable segment in 2006. Our Technology Products segment sells computers, computer supplies and consumer electronics
which are marketed in North America and Europe. We assemble our own PCs and sell them under the trademarks
Systemax™
and Ultra™ . In addition, we market and sell computers manufactured by other leading companies. Technology products
accounted for 92% of our net sales in 2006. Our Industrial Products segment sells a wide array of material handling
equipment, storage equipment and consumable industrial items which are marketed in North America. Industrial products
accounted for 8% of our net sales in 2006. In both of these product groups we offer our customers a broad selection of
products, prompt order fulfillment and extensive customer service. Our Hosted Software segment participates in the emerging
market for on-demand, web-based business software applications through the marketing of our PCS ProfitCenter Software ™
of hosted software. See Note 12 to the consolidated financial statements included in Item 15 of this Form 10-K for additional
financial information about our business segments as well as information about our geographic operations.
The Company was incorporated in Delaware in 1995. Certain predecessor businesses which now constitute part of the
Company have been in business since 1955. Our headquarters office is located at 11 Harbor Park Drive, Port Washington,
New York.
Products
We offer more than 100,000 brand name and private label products. We endeavor to expand and keep current the
breadth of our product offerings in order to fulfill the increasingly wide range of product needs of our customers.
Our computer sales include Systemax and Ultra PCs as well as offerings of other brand name PCs, servers and
notebook computers. Computer supplies and consumer electronics related products include supplies such as laser printer toner
cartridges and ink jet printer cartridges; media such as recordable disks and magnetic tape cartridges; peripherals such as hard
disks, CD-ROM and DVD drives, printers and scanners; memory upgrades; data communication and networking equipment;
monitors; digital cameras; plasma and LCD TVs; MP3 and DVD players; PDA’s; and packaged software.
We assemble our Systemax and Ultra brand PCs in our 297,000 square foot, ISO
-
9001
-
certified facility in Fletcher,