Circuit City 2007 Annual Report Download - page 5

PART I
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 primarily a direct marketer of brand name and private label products. Our operations are organized in three reportable business
segments — Technology Products, Industrial Products and Hosted Software. Our Technology Products segment sells computers, computer
supplies and consumer electronics which are marketed in North America and Western Europe. Most of these products are manufactured by
other companies. We assemble our own personal computers (“PCs”) and sell them under the trademarks Systemax™ and Ultra™ . We also sell
certain computer-related products manufactured for us to our own design under the trademark Ultra™ . Technology Products accounted for
92% of our net sales in 2007. Our Industrial Products segment sells a wide array of material handling equipment, storage equipment and
consumable industrial items which are marketed in North America. Most of these products are manufactured by other companies. Some
products are manufactured for us to our own design and marketed under the trademarks Global™ , GlobalIndustrial.com™ and Nexel™.
Industrial products accounted for 8% of our net sales in 2007. In both of these segments we offer our customers a broad selection of products,
prompt order fulfillment and extensive customer service. Our Hosted Software segment, which became a reportable segment in 2006,
participates in the emerging market for on-demand, web-based business software applications through the marketing of our PCS ProfitCenter
Software ™ application. See Note 11 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.
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