CDW's 'Blowout' March

By John Hazard  |  Posted 2007-04-13 Email Print this article Print

CDW reports that sales spiked in March to nearly $700 million, largely due to a busier enterprise division and the Berbee acquisition.

Direct reseller CDW blew through previous month-month sales records, reporting $696 million in revenue for March 2007, up 19 percent from the previous March, the company said in a statement released yesterday to analysts.

Average daily hit $31.6 billion in March, up 24.6 percent over March 2006, when the company averaged $25.4 million, said the statement, released in preparation for CDW's first quarter results, to be release April 24.

Vernon Hills, Ill.-based CDW said notebooks, desktops, storage, software, video, and memory all sold well in the period.

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CDW is also reporting figures that include sales from Berbee Information Networks, the Madison Wisconsin VAR, it purchased in October 2006, which accounted for some of the rise,but most of it is attributed, analyst reports said, to a busier enterprise business, which grew average daily figures 11.3 percent and government –education, which did 13.7 percent more daily revenue, year-to-year. In January those figures were close to 3 percent, analysts said.

Berbee, which is still operating separately, had a big month of its own, with average daily sales up 110 percent over March 2006, but, CDW cautioned, the VARs project-based model made for a more variable figures.

Brian G. Alexander and Bob Gruendyke, analysts at Raymond James & Associates, called the results "blow-out" and said they expected March to raise CDW's quarterly take to $1.85 billion.

Alexander and Gruendyke said they expected the company to continue growing at such a pace, as it incorporates the more margin rich services business of Berbee, but a significant hiring campaign and the continued recovery from a Spring 2006 sales realignment should act as a governor.


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