CompUSA 2007 Annual Report Download - page 47

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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.