CDW's 'Blowout' MarchBy John Hazard | Print
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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.
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.