Systemax (SYX) to Exit the ProfitCenter Software Hosted Software Business
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Systemax Inc. (NYSE: SYX) announced that it is exiting the ProfitCenter Software ("PCS") hosted software business. The Company is working on transition plans with its customers who are currently live, and the Company will not undertake any new hosting arrangements. As part of the consolidation, a majority of the PCS workforce will be leaving the Company and the remaining PCS workforce has been consolidated into the Company's Port Washington, NY location.
These and other PCS-related actions are anticipated to result in incremental one-time pre-tax charges to earnings during the remainder of 2009 of approximately $4 to $5 million. Excluding these charges, the Company expects the consolidation will result in a reduction of its cost structure exceeding $10 million annually. During 2008, revenues from the PCS segment generated less than $500,000 of the Company's total revenues of $3.0 billion.
Systemax Inc. sells personal computers, computer supplies, consumer electronics and industrial products through a system of branded ecommerce web sites, direct mail catalogs, relationship marketers and retail stores in North America and Europe. [SM]
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