Systemax

Systemax Inc.
Public[1]
Traded as NYSE: SYX
Industry Industrial Distribution/MRO and technology products
Founded 1949 (1949)
Headquarters Port Washington, New York, U.S.
Area served
 Nationwide
Key people
  • Larry Reinhold (CEO)
  • Tex Clark (CFO)
Revenue DecreaseUS$1.855 billion (2015)[2]
Divisions Systemax PC
Subsidiaries
Website www.systemax.com
A Systemax Venture PC

Systemax, Inc., is an American Fortune 1000 company based in Port Washington, New York that sells computer supplies, technology and industrial products through multiple e-Commerce web sites, as well as through relationship marketers and direct mail catalogs that are circulated in North America and Europe.[3][4] The company operates under Global Industrial in North America and MISCO and inmac wstore abroad. [5][6]

The company was founded in 1949 as Global Equipment Company, a materials handler. It first entered direct marketing in 1972 and began marketing computer equipment in 1981. It changed its name to Global Directmail in 1995 and to Systemax in 1999.

Subsidiaries and divisions

Subsidiaries and divisions of Systemax, Inc. include SystemaxPC, Global Industrial, Nexel, Misco, Infotel, Global Computer Supplies, SpeedGifter and Worldwide Rebates.[7]

Acquisition of CompUSA

On January 6, 2008, Systemax Inc. announced an agreement on the acquisition of the Miami-based CompUSA brand, trademarks, and e-commerce business, and as many as 16 CompUSA retail outlets in Florida, Texas, and Puerto Rico.[8] The first new CompUSA store under Systemax ownership was opened in November 2009.

In late December 2012, CompUSA was consolidated into TigerDirect.[9]

Acquisition of Circuit City trademarks and website

On May 13, 2009, Circuit City announced it would sell its intellectual property, including its trademarks, brand name, and internet domain, to Systemax for $14 million.[10] The deal took effect six days later. The defunct CircuitCity.com website was restored after the Systemax purchase.

In late December 2012, Circuit City was consolidated into TigerDirect.[9]

Sale of TigerDirect

Sale of TigerDirect to PCM was completed on 1st December 2015.[11]

On September 17, 2012, the U.S. Securities and Exchange Commission (SEC) charged a former director of Systemax Inc for fraudulently reaping hundreds of thousands of dollars in undisclosed compensation between January 2006 to December 2010. The SEC alleged that Gilbert Fiorentino, who in addition to serving on the board was the former chief executive of Systemax’s Technology Products Group in Miami, "obtained more than $400,000 in extra compensation directly from firms that conducted business with Systemax." The SEC also alleged Fiorentino of stealing "several hundred thousand dollars worth of company merchandise that was used to market Systemax’s products." Fiorentino failed to disclose his extra compensation and perks to Systemax or its auditors, so that the amounts reported to shareholders were understated.[12]

In April 2011, Systemax placed Fiorentino on administrative leave. On May 9, 2011, Fiorentino agreed to resign from all of his positions with Systemax, surrender stock and stock options valued at approximately $9.1 million, and repay his 2010 annual bonus of $480,000. With Fiorentino's departure, Robert Leeds, Systemax's founding CEO of the technology division, took over as CEO of Systemax's technology products group.[12][13]

Fiorentino agreed to settle the SEC charges by paying a $65,000 fine and consenting to a permanent bar from serving as an officer or director of any publicly held company.[12]

On December 3, 2014, Gilbert and Carl Fiorentino pleaded guilty for their participation in a bribery scheme, after it was found that between during his employment, Carl had received over $7 million in kickbacks from suppliers he had entered into agreements with Systemax, and obscured his participation in these agreements to Systemax. Gilbert was also charged with conspiracy to commit securities fraud and impeding the operation of the IRS.[14][15]

Restatement

On February 21, 2005, the company restated financial results for each of the first three quarters of 2004 and the year ended Dec. 31, 2003, following the discovery of certain inventory accounting errors at the company's British unit.[16] On May 11, 2005, the company restated its results for the year 2004, following the discovery of errors in accounting for inventory at its Tiger Direct Inc. unit, an online retailer.[17]

See also

References

  1. ↑ "Archived copy". Archived from the original on February 25, 2008. Retrieved April 26, 2008.
  2. ↑ . Syx.client.shareholder.com https://www.nyse.com/quote/XNYS:SYX. Retrieved 2016-04-28. Missing or empty |title= (help)
  3. ↑ "SYX Profile | Systemax Inc. Common Stock Stock - Yahoo! Finance". Finance.yahoo.com. Retrieved 2016-04-28.
  4. ↑ Tepper, Nona. "Systemax exits North American online retail to focus on B2B". Retrieved 2016-11-28.
  5. ↑ "Systemax.com | Welcome To Systemax". www.systemax.com. Retrieved 2016-11-28.
  6. ↑ "Systemax.com | Welcome To Systemax". www.systemax.com. Retrieved 2016-11-28.
  7. ↑ "Archived copy". Archived from the original on May 16, 2008. Retrieved April 26, 2008.
  8. ↑ "Systemax Announces Definitive Agreement to Acquire Selected Assets and Retail Stores from CompUSA". Systemax. 6 January 2008. Retrieved 16 December 2009.
  9. 1 2 "Archived copy". Archived from the original on November 5, 2013. Retrieved November 5, 2013.
  10. ↑ "Systemax Inc. Signs Stalking Horse Purchase Agreement for Circuit City E-Commerce Business (NYSE:SYX)". Syx.client.shareholder.com. 2009-04-13. Retrieved 2016-04-28.
  11. ↑ "Systemax Closes on Transaction to Divest Certain Assets of North American Technology Group to PCM (NYSE:SYX)". Syx.client.shareholder.com. Retrieved 2016-04-28.
  12. 1 2 3 "SEC Charges Former Systemax Director in Compensation Scheme". U.S. Securities and Exchange Commission. Retrieved 2013-07-22.
  13. ↑ "Systemax exec resigns, must hand over $11 million". CNET. Retrieved 2013-07-22.
  14. ↑ "Former TigerDirect President Indicted in $230 Million Laundering Scheme". The Wall Street Journal. Retrieved 29 December 2015.
  15. ↑ "Former TigerDirect executives plead guilty to fraud". South Florida Business Journal. Retrieved 29 December 2015.
  16. ↑ Joseph F. Kovar. "Systemax To Restate Earnings - Page: 1". CRN.com. Retrieved 2016-04-28.
  17. ↑ "Systemax Announces Intent to Restate 2004 Results". Businesswire.com. Retrieved 2016-04-28.
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