Coronavirus Update: Our team is here to help our clients and readers navigate these difficult times. Visit our Resources page now »

Skip to Main Content

About Global Computer Supplies Inc.

Systemax is a direct marketer of brand name and private label industrial and business equipment and supplies in North America. Systemax also sells material-handling equipment, shelving, storage items, furniture, and other industrial products. Its customers include businesses, government agencies, and schools, as well as individual consumers. Systemax was founded in 1949 as Global Equipment Company. Majority of Its revenue comes from United States.

Operations

Systemax operates and is internally managed in one reportable business segment. The Company sells a wide array of industrial and general business hard goods and supplies and to a lesser extent products that would fall into the generally recognizable category of maintenance, repair and operations.

Geographic Reach

New York-headquartered Systemax has numerous facilities, seven distribution centers in North America and three administrative offices in Asia. Roughly 95% of the company's revenue comes from United Stated and the rest comes from Canada.

Sales and Marketing

Systemax counts businesses, government agencies, schools, and individuals among its consumers.

For business customers, Systemax uses a multi-faceted direct marketing system comprised of its relationship marketers, catalog mailings, and proprietary internet websites. Systemax markets to consumers online through website campaigns, banner ads, and email campaigns. Its e-commerce initiatives and catalog mailings generate online orders and calls to inbound sales representatives. 

Systemax spent $69.8 million, $70.4 million and $67.0 million for advertising expense in fiscal years 2019, 2018 and 2017, respectively.

Financial Performance

Despite a drop in sales in 2016, the company revenue grew by 10% from 2015 to 2019.

In fiscal 2019, revenue rose by almost 6% to $946.9 million, reflecting solid demand across key product categories as the business experienced a soft market environment and a cautious but committed customer base during 2019.

Net income fell to $48.5 million from $224.7 million the year before, due mostly to higher selling, distribution and administrative expenses and higher provision for income tax.

Cash at the end of the year was $97.2 million. Operating activities provided $68.4 million while investing activities used $6.9 million and financing activities used another $259.6 million. Main cash uses were for payment of dividends and purchases of property, plant and equipment.

Strategy

The company strategy is to provide businesses with top quality, private label, brand name industrial equipment and supplies as well as critical facility services. It promotes innovation and a collaborative spirit in all its dealings and it cultivates long term relationships for all constituencies.

The company also utilizes a sourcing strategy encompassing sales of in stock items that are either national brands, private labels, or white label products as well as supplementing its stocking strategy with product fulfilled directly by its vendor partners via a drop ship relationship. In stock items tend to be higher in velocity, higher in gross margin, and offer a higher service level to its customers. In August 2019, it launched a new distribution facility in De Soto Texas to better serve its business in the West and Southwest. In stock items are distributed via a network of five large distribution centers in the US located in the Northeast, Midwest, West, Southeast, and South Central regions and two additional smaller distribution facilities in Canada.

Company Background

Looking to gain from the ruin of failed US electronics merchants, Systemax emerged as the winner for the brand, trademarks, and e-commerce operations of Circuit City in 2009. Although CircuitCity.com relaunched in mid-2009, Systemax said it was too early to determine whether retail stores would also make a comeback.

Unlike Circuit City, Systemax has been expanding CompUSA's network of retail stores. (It acquired CompUSA's brand, trademarks, and e-commerce unit, as well as about 15 retail outlets, for $30 million in 2008.) The company rebranded its more than 10 existing TigerDirect shops as CompUSAs and added five new locations in 2009. It added about half a dozen more CompUSA stores in 2010. Systemax said it purchased the electronics giants in an effort to expand its e-commerce operations, led by TigerDirect, its online computer sales subsidiary.

The company exited the retail business in the US in 2015 with the sale of the operations to PCM.

Global Computer Supplies Inc.

11 Harbor Park Dr
Port Washington, NY 11050-4656
Phone: 1 (516) 608-7000

Firm Stats

Employer Type: Privately Owned
Account Manager Corporate Sales Division: Bradley Brown
Human Resources Manager: Linda Marino
Senior Account Manager Corporate Sales: Susan Sasso
Employees (This Location): 150
Employees (All Locations): 550

Major Office Locations

Port Washington, NY

Other Locations

Naperville, IL
Holmdel, NJ