PC Mall, Inc. Q4 2008 Earnings Call Transcript

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2009-02-23 18:53:17.0

Tags: Analyst, Call Transcript, Quarter, PC Mall Inc., Earnings, Corporate Governance, Pricing, Business Operations, Corporate Law, Marketing, Seeking Alpha

Question-and-Answer Session

Operator

(Operator Instructions) Your first question comes from the line of Brian Alexander - Raymond James.

Analyst for Brian Alexander - Raymond James

This is Brian Peterson in for Brian Alexander. I think demand environment got a little worse obviously in the quarter. I am just wondering if you could speak to the linearity and maybe how things are tracking thus far in the March quarter.

Kris Rogers

Brian, this is Kris Rogers. Yes, we talked specifically about what we saw in Q4 and I think consistent with what we have seen from some of our other partners in 2009, we saw demand continued to decelerate in January and so from our perspective, we saw weakness across the board in all segments in January and anything more specific than that?

Frank Khulusi

We attribute that to the fact that a lot of these companies that did not get the new 2009 operating budget in place and that continued for a part of February and we are seeing activity pick up now and new budgets get approved and there is more request for quotes and more request for special pricing and so on and so forth.

Analyst for Brian Alexander - Raymond James

That is interesting. Okay in the services growth, it was actually pretty healthy at 30+% this quarter. Is that something you guys see continuing at that rate or should we see that dip?

Frank Khulusi

It is hard for us to project but what I will tell you is that the opportunity continues to be there and actually even greater than the performance that we have exhibited in the fourth quarter specially as we step up our or as we like to call it up-pop, our level of effort and selling these services across the wider category of customers and also making it a wider category of services whether or not in the short term. You get, that has been empty but long term, we continue to be firmly behind this and actually this is one of the top areas that we are focused on at PC Mall.

Analyst for Brian Alexander - Raymond James

Alright and I think just last, I know you guys mentioned the $4 million in cost savings that you guys are planning at taking out on your last quarter's call. Did that actually flow through this quarter?

Brandon Laverne

Yes, significant amount of that $4 million is in there. It is offset a little bit by some of the investments we talked about in the other areas and so when you look at corporate and other in some of our other segments, we have achieved a lot of those savings in almost all of our segments and we continue to look at all of our tightening as we go forward.

 

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