Dallas, Apr 17: CompUSA Inc., the nation's largest computer retailer, said late Friday it would make its Net.com unit an Internet-only business, a move that will result in a charge of $5 to $8 million against fourth quarter results and about 200 layoffs at its Marlborough, Mass., location.The realignment is expected to take three months to implement.
CompUSA has already predicted that weaker-than-expected sales will lead to losses in its fiscal third and fourth quarters. The company has yet to report earnings for the third quarter ended March 27.
Analysts most recently predicted losses of 5 cents a share in the third quarter and 13 cents a share in the fourth quarter, according to First Call Corp.
In the second quarter, CompUSA earned $15.6 million, or 17 cents a share, on revenue of $1.78 billion.
That compared with earnings of $34.1 million, or 36 cents a share, on revenue of $1.46 billion a year earlier.
The shares closed unchanged Friday at $5.9375 on the New York Stock Exchange, off a52-week high of $21.6875.
The Net.com unit will transfer certain operations to the parent company and phase out certain obligations, the company said.
By focusing on an exclusively Internet format, Net.com's new management team can capitalise on the rapidly growing Internet business, the company said.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.
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