PC Mall’s Sales Rise In Second Quarter

PC Mall Inc. reported $331.2 million during second-quarter 2008, up from $263 million a year earlier. The company’s net income ticked up as well, from just under to just over $3 million. Income levels were held back in part by additional investment in personnel. The quarter ended June 30.

Among its segments, SMB, the division that makes sales primarily to small and medium-sized businesses, reported revenue of $129.9 million, a $4.6 million increase over second-quarter 2007’s level, despite softness in the company’s volume iPod business. This was one of the areas where the company invested in account executive headcount, according to the company’s financial documents.

MME, the unit that deals with mid-market and enterprise-sized customers through the company’s under the Sarcom, Wareforce and Abreon brands, generated $104.4 million, up from $4.6 million a year ago. The increase was primarily due to adding Sarcom to second-quarter 2008 results, as well as organic growth. But the Sacrom addition also brought with it $6.9 million in additional personnel costs, as well as investment in more account executives for the legacy MME business.

Within the company’s public sector segment, sales slipped to $37.3 million from $37.7 million a year ago. According to financial statements from PC Mall, “This decrease was due primarily to a decline in our federal business which was impacted by the timing of certain shipments at the end of the quarter, largely offset by increases in our state and local business capitalizing on the close of [their] budget years and recent contract wins in this sector.”

Consumer sales, which include the firm’s MacMall and Onsale brands, were $59.5 million, compared with $55.3 million a year ago. The company attributes these gains to strength in the Apple market, as well as aggressive consumer promotions, both of which were offset by general softness in the consumer market.