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Technology Stocks : Compaq -- Ignore unavailable to you. Want to Upgrade?

To: Kenya AA who wrote (43177)	1/12/1999 8:55:00 AM
From: Kenya AA	Read Replies (1) \| Respond to of 97611

Cpq mentioned in this article ... PC Connection, Inc. Reports Record Sales; Annual Net Sales Increase 33% Business Wire - January 12, 1999 07:45 MERRIMACK, N.H.--(BUSINESS WIRE)--Jan. 12, 1999--PC Connection, Inc. (NASDAQ: PCCC), a leading direct marketer of personal computers and related accessories, today announced that net sales increased by 32% for the fourth quarter of 1998 compared to the year ago quarter. Net sales for the fourth quarter ended December 31, 1998 were $220 million, compared to net sales of $167 million for the corresponding prior year period. Total sales for the year increased 33% to $732 million versus $551 million in 1997. The growth in net sales was attributable to the following: -- Outbound Sales: The company's staff of technically-trained outbound telemarketing account managers generated $113 million in total net sales for the fourth quarter and $391 million for the year compared with $83 and $257 for the same periods in 1997; -- Internet Sales: Unassisted Internet sales for the quarter increased 205% to $10.6 million compared with $3.5 million for the fourth quarter in 1997. Annual sales processed directly online grew 455% to $29.1 million for the year up from $5.2 million in 1997. Fourth quarter sales sourced from the company's web site, including orders processed online and web-generated phone orders, increased 185% to $23 million compared with $8.1 million generated in the fourth quarter of 1997. Annual internet-sourced sales increased 230% to $62.7 million from $19 million for the full year 1997; -- Product Growth: Computer system sales during the fourth quarter were strong with unit volumes up 75% over the fourth quarter of 1997 and net sales up 41%. System unit volumes for the full year advanced 76% with net sales increasing 43%. Average selling price declines in the quarter were modest compared to the third quarter of 1998 despite a year-over-year average selling price decline of 19%. Patricia Gallup, Chairman and Chief Executive Officer, said, "Strong performances across all segments of our business contributed to record sales for the quarter and the year. The company's rapidly expanding outbound account managers generated over 51% of our total sales. Internet sales gained significant momentum during the quarter exceeding our expectations. Sales sourced over the internet now account for more than 10% of the company's total net sales." During the quarter the company completed a comprehensive redesign of its web site, including several technical upgrades to increase transaction speed, content and overall performance. Early in the quarter, the company launched an electronic auction component for the sale of refurbished computer products and related product offerings through a relationship with Auction Universe. Auction Universe, a subsidiary of Classified Ventures, is a leading provider of online auction services through a network of 140 media companies reaching more than 70 million people. Also during the quarter, the company announced a joint marketing effort with Compaq Computer Corp. (NASDAQ:CPQ) designed to increase sales and market share of Compaq products to the small and medium-sized business market. Gallup added, "We enter 1999 with the infrastructure and proprietary distribution channels in place to effectively leverage the continued strong demand for PCs and other high-end computing products in the corporate and home markets." The company is scheduled to release its full fourth quarter results the week of February 8, 1999. PC Connection, Inc. is a leading direct marketer of over 25,000 brand-name personal computer products. Distribution channels include its catalogs, PC Connection and MacConnection (800/800-6941), its Online Superstore at www.pcconnection.com and www.macconnection.com, and its staff of technically-trained outbound and inbound account managers. In recognition of its role as a critical link between manufacturers of computer products and the users of these products, PC Connection received the highest ranking of any direct marketer on the 1997 and 1998 lists of the "100 Most Influential Companies in the Computer Industry," published in PC Magazine. The Company was founded in 1982 and has facilities in Merrimack, Keene, Hudson and Dover, New Hampshire. PC Connection's full-service distribution and custom-configuration center is located in Wilmington, Ohio, providing customers with fully configured computers for overnight delivery. "Safe Harbor" Statement Under the Private Securities Litigation Reform Act of 1995: This release contains forward-looking statements that are subject to risks and uncertainties, including, but not limited to, the impact of competitive products and pricing, product demand and market acceptance, new products, fluctuations in operating results and other risks detailed under the caption "Risk Factors" in the Company's registration statement filed with the Securities and Exchange Commission in connection with its initial public offering (File No. 333-41171). CONTACT: PC Connection Inc., Merrimack Tracey T. Turner, 603/423-2163