Circuit City 2008 Annual Report Download - page 6

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Table of Contents
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 Software Solutions. Our Technology Products segment sells computers, computer
supplies and consumer electronics which are marketed in North America and Europe. Except for certain personal computer (“PC”) products that
we assemble ourselves and sell under the trademarks Systemax™ and Ultra™ , substantially all of our products are manufactured by other
companies. We also sell certain computer-related products manufactured for us to our own design under the trademark Systemax™ and
Ultra™ . Technology Products accounted for 92% of our net sales in 2008.
Our Industrial Products segment sells a wide array of material handling equipment, storage equipment and consumable industrial items which
are marketed in North America. Substantially all 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 2008.
Our Software Solutions segment participates in the emerging market for on-demand, web-based business software applications through the
marketing of our PCS ProfitCenter Software ™ application. See Note 10 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 headquarter 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 $30.6 million. This
acquisition accelerated the Company’s planned expansion into the retail market place in North America and Puerto Rico.
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 desktops, laptops and notebooks and 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-9001:2000 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.
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