CompUSA Loses $12.1M in Quarter
Nov. 05, 1999
DALLAS (AP) _ CompUSA, the nation's largest computer retailer, reported Thursday a loss of $12.1 million in the latest quarter. The report came one day after the chief executive said he should be fired if a restructuring campaign doesn't succeed.
Dallas-based CompUSA's stock has plummeted from $30 a share 18 months ago to under $6. In the last year, the company has lost millions of dollars, laid off thousands of workers and faced a protest by black consumers for not advertising on black-oriented media.
Chief executive James Halpin was peppered with questions for more than 30 minutes from worried shareholders at Wednesday's annual meeting.
The company said it lost $12.1 million, or 13 cents a share, in the three months ending Sept. 25. Excluding charges related to restructuring, the company put the loss at 3 cents.In the same quarter last year, it gained $8.1 million, or 9 cents a share.
The company lost $45.75 million for the fiscal year ended in June, compared to a $31.54 million profit in the previous year. Sales fell 2.2 percent to $1.36 billion.
Analysts say a continued decline in personal computer prices and CompUSA's purchase of ailing Computer City in 1998 have contributed to losses in a competitive high-volume, low-margin business. The company has recently shifted its focus to other kinds of electronics.
At least one analyst, Donald Cunningham at Gilmour & Associates, downgraded the stock to ``neutral'' on Thursday. Cunningham had initiated coverage with a ``buy'' rating less than two weeks ago.