Merisel Inc, the El Segundo, California-based distributor of computer products has warned that figures for its fourth quarter to December 31 will not meet analysts’ expectations. While sales for the final three months are expected to grow 13% to $1.2bn, and the company expects annual revenues to show a 18% rise to %4.6bn, anticipated annual earnings per share of between $0.21 and $0.23 are well below analysts’ predictions of $0.29. Merisel blamed the poor performance on flat sales amongst US value added resellers and below target growth of 10% in its commercial accounts. Intense competition was also blamed for lower gross margins and earnings. Merisel also faces tough conditions this year with heavy investment, Y2K compliance spending and rolling out a new SAP system.
