About Tigerdirect, Inc.

PCM markets and sells computer hardware, software, and services to corporate, government, and educational customers. The company offers products and services from the world's top technology vendors -- including Apple, Cisco, Dell, HP, and Microsoft -- and adds value by packaging multiple offerings into a comprehensive solution. Software is its largest product segment, accounting for nearly 30% of sales; other products include desktops and notebooks, displays, and servers. PCM sells through websites and catalogs, as well as a direct sales force. It generates most of its sales in the US.

Operations

PCM has three reporting segments: Commercial, Public Sector, and Canada.

Its Commercial segment, which includes corporate customers, is far and away the largest, generating about three-fourths of revenue. Federal, state, and local governments, as well as educational institutions, are included in the Public Sector segment, which accounts for some 15% of revenue. PCM's newest segment, Canada, includes all sales made in the Canadian market and brings in just more than 5% of revenue.

Software accounts for nearly 30% of the company's revenue, with notebooks, tablets, and desktops together contributing about 25%. PCM's other major product lines include networking, delivered services, displays, storage, and accessories.

Geographic Reach

PCM generates nearly 95% of sales in the US; the rest comes from Canada.

The company's primary sales and distribution facilities are in the US (California, Georgia, and Ohio) and Canada (Alberta). It also has an operations center in the Philippines.

Sales and Marketing

PCM employs a sales force and field service teams and various direct marketing channels (namely e-commerce websites and catalogs) to sell its tech products. The company has taken a leading position as a marketer of Microsoft, HP, and Cisco products, which together account for more than a third of sales.

Financial Performance

After four years of flat or declining revenue, PCM reported revenue growth of nearly 25% in 2015 and an additional 35% in 2016 to hit $2.3 billion. All three company segments grew in 2016, with results most heavily impacted by the 2015 acquisitions of IT services firms in the US and Canada.

Net income was also up in 2016, hitting a 10-year high of $17.6 million (compared to a loss of $18 million the prior year). Along with the jump in revenue, net income was boosted by tighter control of cost of goods sold and selling, general, and administrative expenses, both of which represented a smaller percentage of net sales than in 2015.

Along with revenue and net income, cash from operations rose in 2016, hitting $95 million. A nearly $90 million increase in accounts payable related to payables timing added to the growth.

Strategy

Although PCM does focus on organic growth, primarily in the areas of end point solutions (digital signage, point-of-sale, field & lifecycle services) and advanced technologies (data center, networking, security, cloud migration), it has grown primarily in recent years through acquisitions.

The company has used acquisitions to bolster and enhance its US operations, as well as to expand first into Canada and then into Europe.

Mergers and Acquisitions

In the past few years, PCM has made multiple acquisitions to strengthen its business in the US and move it into new markets.

Its largest acquisition to date (revenue-wise) was the mid-2015 purchase of IT services provider En Pointe, based in Southern California.The deal increased PCM's software and advanced technologies businesses and enhanced its relationships with key vendors such as Cisco, HP, and Microsoft.

Several acquisitions in 2015 and 2016 pushed PCM into Canada and expanded its operations there, including Acrodex (an IT services provider based in Alberta, Canada, for C$16.5 million), the B2B assets of Systemax's North American Technology Group, and Alberta-based IT services firm Stratiform (C$2.1 million).

The company launched a European expansion initiative in mid-2017, creating a UK-based subsidiary and bolstering it with the purchase of Liverpool-based Stack Technology Holdings.

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Tigerdirect, Inc.

7795 W Flagler St Ste 35
Miami, FL 33144-2367
Phone: 1 (305) 415-2200
Fax: 1 (305) 415-2202

Stats

  • Employer Type: Public
  • President: Joseph Dunne
  • Chp: Richard Leeds
  • Chairman: Dwight Williams
  • Employees: 475

Major Office Locations

  • Miami, FL

Other Locations

  • Fort Lauderdale, FL
  • Tampa, FL
  • Meridian, ID
  • Naperville, IL
  • Vernon Hills, IL
  • Raleigh, NC
  • Port Washington, NY
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