Merisel Reports Fourth-Quarter Results (2004)Full Document 

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FOR IMMEDIATE RELEASE                 Contact:           Timothy N. Jenson
                                                   Chief Executive Officer
                                                             615-6850

                     MERISEL REPORTS FOURTH-QUARTER RESULTS
                            Revenue Growth Continues

EL SEGUNDO, Calif. (March 5, 2004) -- Merisel, Inc. (Nasdaq:MSEL) today
announced results for its fourth quarter and fiscal year ended December 31,
2003. Net sales were $96.0 million for fiscal year 2003, up 18% from $81.6
million for fiscal year 2002. Net sales were $27.5 million in fourth quarter
2003, up 1% from $27.3 million for fourth quarter 2002 and up 9% from $25.4
million for third quarter 2003. In 2002, the Company changed its fiscal year to
December 31 from the Saturday closest to December 31. Due to this change, the
Company had an extra shipping day included in net sales for fiscal year 2002.

The Company reported a net loss available to common stockholders of $82,000, or
$0.01 per share, for the quarter ended December 31, 2003. This compares with net
income available to common stockholders of $4.6 million, or $0.61 per share, for
the same prior year period. Results for both periods were favorably affected by
adjustments related primarily to the Company's wind down of its U.S. hardware
distribution business, which reduced selling, general and administrative
expenses by $214,000 and $2.2 million and reduced cost of sales by $344,000 and
$1.5 million for the fourth quarter 2003 and 2002, respectively. Results for the
periods also include income from discontinued operations of $275,000 and
$858,000 for the fourth quarter 2003 and 2002, respectively. These favorable
adjustments were partially offset by restructuring charges of $228,000 and
$221,000 for the fourth quarter ended 2003 and 2002, respectively, relating
primarily to adjustments of previous estimates of liabilities associated with
leases of equipment and disposed facilities.

For the year ended December 31, 2003, the Company reported net income available
to common stockholders of $1.2 million, or $0.16 per share compared with net
income available to common stockholders of $5.7 million, or $0.74 per share for
fiscal year 2002. Results for both years were favorably affected by adjustments
related primarily to the Company's wind down of its U.S. hardware distribution
business, reducing selling, general and administrative expenses by $1.8 million
and $2.5 million and reducing cost of sales by $1.1 million and $4.8 million for
2003 and 2002, respectively. These favorable adjustments were partially offset
by restructuring and impairment charges in fiscal year 2003 totaling
approximately $2.5 million and restructuring charges of $465,000 in fiscal year
2002. Results also include net income from discontinued operations of $275,000
and $2.0 million for fiscal year 2003 and 2002, respectively.

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