November 3, 1999
Dow Jones Newswires
CompUSA Sees No Effect From NEC's
Laptop Restructuring
By EVAN RAMSTAD
DALLAS -- Executives at CompUSA Inc. (CPU) say the decision by NEC
Corp. (NIPNY) to withdraw Packard Bell and NEC computers from
retailers will have little effect on its sales.
The nation's largest computer superstore chain six months ago stopped
ordering Packard Bell-branded PCs from NEC. The chain still carries several
models of NEC-branded PCs, but doesn't currently have a large inventory of
them, said Larry Mondry, CompUSA executive vice president,
merchandising.
CompUSA earlier this year also stopped selling desktop PCs made by IBM
Corp. (IBM) and wasn't affected by that company's decision last month to
withdraw those products from retailers, Mondry said.
He said CompUSA will offer more models of its own brand of PCs, along
with those from Apple Computer Inc. (AAPL), Compaq Computer Corp.
(CPQ), Hewlett-Packard Co. (HWP) and Sony Corp. (SNE), if executives
decide there are gaps in the overall product mix.
"Our customer is not going to say, 'There's nothing available in the speeds and
feeds I want'," Mondry said.
He made the comments at the company's annual meeting Wednesday
morning. NEC Tuesday announced a radical restructuring of its U.S.-based
Packard Bell NEC unit. In the overhaul, the Packard Bell brand will
disappear and NEC PCs will be aimed at corporate customers.
Meanwhile, at the CompUSA meeting, shareholders asked questions about
the retailer's own restructuring. CompUSA's stock has languished in the $5 to
$9 range for most of the year, trading most recently at 5 11/16, down 1/16,
or 1.1%, far below its trading range of the past three years.
Chief Executive Jim Halpin said the company aims to return to profitability
within the next 12 months and told shareholders he believes Wall Street
investors want to see earnings. When a shareholder asked what should
happen if CompUSA's stock remains in the same position a year from now,
Halpin said, "The company should fire me. If this management team can't get
this company turned around, it's up to the board of directors to get a new
management team."
-By Evan Ramstad, 201-938-5099 |
