Systemax readies books

Delayed accounts nearly finished...

By John Oates • Get more from this author

Posted in IT Channel, 16th March 2005 16:01 GMT

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Systemax, Simply Computer's saviour, will have restated accounts ready by the end of the month after problems at its UK arm forced it to review seven quarters worth of results.

Steven Goldschein, chief finance officer at New York-based Systemax, told El Reg: "We are on track to have figures ready by March 30, we're making good progress." He said he did not expect any further changes to management or strategy at its British subsidiary Misco, formerly Simply Computers.

Last month Systemax blamed its UK subsidiary for a sizeable hole in its accounts which will force it to restate accounts for the first three quarters of 2004 and the whole of 2003.

Income for the year 2003 is likely to be reduced by as much as $2.5m and income for the first nine months of 2004 will be lower by $1.3m to $1.6m, it said.

Systemax cited "certain errors in accounting for inventory at its UK subsidiary". It is reviewing internal controls to ensure such a thing doesn't happen again. It has made changes to senior management and the UK is business is now under the direct control of Systemax's US subsidiary TigerDirect.®