For what it is worth> Looks like this company is flat and maybe adversely affected by competition. They are offering volume discounts and rebates. The training expense was not as bad as hyped. Any other opinions?
May 14, 1998
COMPUCOM SYSTEMS INC (CMPC)
Quarterly Report (SEC form 10-Q)
Management's Discussion and Analysis of Financial Condition and Results of Operations March 31, 1998
Results of Operations
The following table shows the Company's total revenue, gross margin and gross margin percentage by revenue source. Operating expenses, interest, income taxes
and net earnings are shown as a percentage of total net revenue for the three months ended March 31, 1998 and 1997.
March 31,
1998 1997
------------------------------------
($ in thousands)
Revenue:
Product $ 376,778 $ 375,605
Service 57,128 53,728
Other 3,846 2,556
====================================
Total revenue 437,752 $ 431,889
====================================
Gross margin:
Product $ 43,880 $ 38,932
Service 18,370 19,362
Other 1,915 1,184
====================================
Total gross margin $ 64,165 $ 59,478
====================================
Gross margin percentage:
Product 11.6% 10.4%
Service 32.2% 36.0%
Other 49.8% 46.3%
------------------------------------
Total gross margin percentage 14.7% 13.8%
------------------------------------
Operating expenses:
Selling 4.8% 4.7%
Service 3.4% 2.5%
General and administrative 3.4% 3.3%
Depreciation and amortization 0.8% 0.6%
------------------------------------
Total operating expenses 12.4% 11.1%
------------------------------------
Operating earnings 2.3% 2.7%
Financing expenses 0.8% 0.8%
------------------------------------
Earnings before income taxes 1.5% 1.9%
Income taxes 0.6% 0.8%
------------------------------------
Net earnings 0.9% 1.1%
====================================
(Continued) |
