Circuit City 2007 Annual Report Download - page 6

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.
Recent Developments
On January 5, 2008 the Company entered into an asset purchase agreement with CompUSA Inc. Under the agreement the Company acquired
CompUSA’s e-commerce business and 16 of its retail leases and related fixtures for consideration of approximately $30.4 million. This
acquisition accelerates the Company’s planned expansion into the retail market place and when consummated in early 2008 will give the
Company approximately 26 retail storefronts operating in North America and Puerto Rico.
Effective the fourth quarter of 2007, the Company changed its fiscal year end from a calendar year ending on December 31 to a fiscal year
ending at midnight on the Saturday closest to December 31. Fiscal years will typically include 52 weeks, but every few years will include 53
weeks which was the case in 2005. Fiscal 2007 ended on December 29 and included 52 business weeks. For clarity of presentation herein, all
fiscal years are referred to as if they ended on December 31. The fiscal year will be divided into four fiscal quarters that each end at midnight on
a Saturday. Fiscal quarters will typically include 13 weeks, but the fourth quarter will include 14 weeks in a 53 week fiscal year. For clarity of
presentation herein, all fiscal quarters are referred to as if they ended on the traditional calendar month. The effect of the change in year end in
2007 was de minimis.
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 are primarily offerings of brand name original equipment manufacturers, as well as our own Systemax and Ultra brands.
Computer supplies and consumer electronics related products include supplies such as laser printer toner cartridges and ink jet printer cartridges;
media such as flash memory, 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; PDAs; and packaged software.
We assemble our Systemax and Ultra brand PCs in our 297,000 square foot, ISO-9001-certified facility in Fletcher, Ohio. We purchase
components and subassemblies from suppliers in the United States as well as overseas. Certain parts and components for our PCs are obtained
from a limited group of suppliers. We also utilize licensed technology and computer software in the assembly of our PCs. For a discussion of
risks associated with these licenses and suppliers, see Item 1A, “Risk Factors.”
Our industrial products include storage equipment such as wire and metal shelving, bins and lockers; light material handling equipment such as
hand carts, pallet jacks and hand trucks; ladders, furniture, small office machines and related supplies; and consumable industrial products such
as first aid items, safety items, protective clothing and OSHA compliance items.
We began to market our PCS ProfitCenter Software ™ suite of business applications in 2004. PCS ProfitCenter Software ™ is a web-based
application which is delivered as an on-demand service over the internet. The product helps companies automate and manage their entire
customer life-cycle across multiple sales channels (internet, call centers, outside salespersons, etc.). We have recognized less than $1 million in
revenues for this service to date.
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