PC Mall Reports First Quarter 2012 Results

PC Mall, Inc. (NASDAQ:MALL), a leading IT solutions provider, today reported financial results for the first quarter of 2012. Consolidated net sales for Q1 2012 were a first quarter record $342.3 million, an increase of 2%, from $335.9 million in Q1 2011, and was impacted by a $27.1 million decrease in sales to promotional companies under a vendor program change in Q4 by a large vendor. Excluding the effect of this program change, our sales grew $33.5 million, or 11% compared to Q1 2011. Consolidated gross profit for Q1 2012 increased 8% to a first quarter record $46.8 million from $43.5 million in Q1 2011. Consolidated gross profit margin was 13.7% in Q1 2012 compared to 12.9% in Q1 2011. Consolidated operating profit for Q1 2012, which includes $0.6 million of severance and restructuring related costs, decreased 93% to $0.1 million compared to $1.9 million for Q1 2011. EBITDA (as defined below) for Q1 2012 decreased $0.8 million to $3.3 million from $4.1 million in Q1 2011. Consolidated net loss for Q1 2012 was $0.5 million compared to consolidated net income of $0.7 million for Q1 2011. Diluted loss per share for Q1 2012 was $0.04 compared to diluted EPS of $0.06 for Q1 2011.

Commenting on the Company’s first quarter results, Frank Khulusi, Chairman, President and CEO of PC Mall, Inc. said, “We are pleased that we grew sales by 11% excluding the program change mentioned above, and that we grew our gross margin to 13.7% from 12.9% year over year. This margin growth was primarily due to our continued focus on improving our mix of services and solutions sales. Our operating profit in Q1 was impacted by a number of factors, including our ongoing investments, our IT upgrades and $0.6 million of severance and restructuring related costs incurred during the quarter. As we previously discussed on our Q4 2011 conference call, we are committed to our goal of generating $30 million to $32 million in EBITDA in 2012, excluding any severance or restructuring related expenses.”

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