CDW Sets Sights on $10B in '08By John Hazard | Print
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Analysts say direct reseller CDW's 2008 target of nearly 60 percent growth indicates that the company is likely mulling a major acquisition.Direct reseller CDW has set a 2008 target of reaching $10 billion in sales, nearly 60 percent growth, an indication, analysts said, that the company is likely mulling a major acquisition.
In an April 7 letter to investors, CEO John A. Edwardson said the company was striving to the reach the double-digit number by 2008, "through a combination of organic growth and acquisition activity."
"While the CEO's statement does not suggest they are looking to move in this direction, we are hopeful that such acquisitions address the company's service capabilities."
The $10 billion mark would require 12 to 15 percent growth over the next few years, while projections are for the company to increase revenue approximately 8 percent in 2006 and 9 percent in 2007, Alexander said.
CDW, based in Vernon Hills, Ill., hit $6.3 billion in revenue in 2005, a 9.7 percent increase over 2005. But the company predicted slower growth during the coming year, as the company undertakes several capital improvements, namely the realignment of the corporate sales team to align account managers along geographic lines and the construction of a 513,000-square-foot warehouse near Las Vegas.