PC Mall, Inc.

PC Mall, Inc.
PC Mall, Inc.
Type Public (NASDAQMALL)
Industry Direct Marketer
Founded Marina Del Rey, California, USA (1987)
Founder(s) Sam Khulusi, Frank Khulusi
Headquarters Torrance, California, USA
Number of locations 20+
Area served United States
Key people Frank Khulusi (CEO, President, Chairman) Brandon LaVerne (CFO, CAO, Treasurer) Kris Rogers (EVP, Sales and Marketing) Joseph Hayek (EVP, Corporate Development) Rob Newton (General Counsel)
Products Computer Hardware, Consumer Electronics, Information Technology
Revenue increase$1.37 billion (2010)[1]
Operating income increase$14.5 million (2010)[1]
Net income increase$7.6 million (2010)[1]
Total assets increase$334.1 million (2010)[1]
Employees 2,600 (2010)[1]
Divisions PC Mall Inc.
PC Mall.Gov
PC Mall Services
PC Mall Canada
MacMall
SARCOM
Health Dynamix
AF Services, LLC
OSRP, LLC
Website PC Mall.com
PC MallGov
MacMall.com
SARCOM.com
Abreon.com
HealthDynamix.com
Onsale.com
PC Mall Small Business Network.com

PC Mall, Inc. (NASDAQMALL) is a value-added direct marketing company that offers computer and electronic products, services, and solutions to individual consumers, small and medium businesses, large enterprises, as well as for government and educational institutions. The company is based in Torrance, California.

PC Mall, Inc., along with its wholly owned subsidiaries (all together known as “PC Mall,”), started in 1987 as a rapid response direct market catalog. Through telemarketing executives, the Internet, direct marketing, print catalogs, and three retail showrooms. Customer orders are fulfilled in part by the company’s distribution center near FedEx’s main hub among other networks.

The company has an annual total revenue of US$1.37 billion and has currently has over 20 locations in the United States, Canada, and The Philippines. It employs over 2,600 people as of 2010.[1]

Contents

History

As Creative Computers Inc.

Frank Khulusi - CEO and founder of PC Mall Inc.

The company now known as PC Mall was founded by two brothers, Sam and Frank Khulusi, in 1987 under the name of “Creative Computers”. Creative Computers was launched from the founders’ residence in Marina Del Rey, CA. The company was set up as a mail order catalog company whereby products are advertised through paper flyers/catalogs. Interested customers called in their orders through the provided toll-free "1-800" phone number.[2] The founders then took the order and placed purchase orders to acquire sold products, bill the customers’ credit card and ship the products to the customers. At startup, the company’s catalog consisted of one brand of computers “Amiga” made by Commodore International. The company became the number one mail order reseller of Amiga computers. In 1993/1994 Commodore went through financial difficulties, which caused it to close its operation in April 1994.

In early 1994, PC Mall obtained authorization to sell Apple computers through its mail order catalog model. The authorization came at an opportune time as the Commodore operation was soon to close. With the Apple authorization and the anticipated growth, PC Mall moved its operation from the back of a retail store to a call center with over 100 seats, a 35,000-square-foot (3,300 m2) distribution center, and over 15,000-square-foot (1,400 m2) of corporate office space.

In first quarter of 1995, the company filed for its initial public offering and went public in April 1995.

Growth and Acquisitions

In early 1995, the company expanded its catalog to include PC Wintel products as well. To support the growth, the company moved its distribution center to a 212,000-square-foot (19,700 m2) distribution center next to FedEx hub in Memphis, TN in the third quarter of 1995. In addition to the millions of catalogs mailed monthly, the company launched its first web sites macmall.com and pcmall.com in 1996.

In 1996/1997, the company acquired Computability, a Milwaukee-based company,[3] and Elek-Tek, a Chicago-based company, both dealing primarily with PC Wintel products.

In 2001, the company acquired Wareforce, a southern California-based company. Then, in 2002, the company acquired Club Mac, another southern California-based operation.[4]

In 2004, the company launched its website onSale.com, which focuses on the sales of computer and consumer electronic products, primarily via the Internet.

In third quarter of 2006, PC Mall Gov, Inc., a wholly owned subsidiary of PC Mall, Inc., acquired the product business of GMRI, a Virginia-based company. GMRI provides IT consulting and technology solutions for Federal agencies.[5]

Then in the third quarter of 2007, the company acquired SARCOM, which was based in Lewis Center, Ohio, into which Wareforce’s operations were subsequently folded. Focusing on enterprise-level businesses, SARCOM offers technology products and services. The Abreon Group, a division of SARCOM, is a consulting and training operation for mid-market and enterprise businesses.

In December 2009, the company acquired the assets of Data Systems Worldwide (DSW), a converged networking company, and in June 2010, they acquired NSPI, a managed services company. Both DSW and NSPI’s operations are now secured under the SARCOM subsidiary.

Venturing into the realm of social networking for the first time, the company launched their Small Business Network, or SBN, in 2009. SBN is an online meeting place catering to the needs of small businesses and small business owners.

The company started HealthDynamix, based in Manassas, Virginia, in early 2010. This division provides information technologies and services for healthcare and medical industries.

Divisions

PC Mall Headquarters at Torrance, California

PC Mall's expansion has divided it into several divisions that cater to specific markets and functions.

  • PC Mall Sales Inc.
PC Mall Sales Inc. is the largest division in the company, with almost 1,000 employees. The division provides technology and IT products that mostly cater to small and medium businesses through the company's main website, catalogs, and through the use of social media.[6]
  • PC Mall Services
PC Mall Services is a division of PC Mall Inc. that provides computing, data management and other solutions to all PC Mall business customers.[6]
  • PC Mall Gov
PC Mall Gov is a direct marketing reseller of IT products and services for the public or federal government and health care clientele in the United States. The subsidiary provides hardware, software, networking tools, peripherals, storage, supply, and other computing solutions for its target market.[7]
  • PC Mall Canada
A division of PC Mall
  • PC Mall Small Business Network
  • MacMall
MacMall is a division of PC Mall that mainly sells Macintosh computers, iPods, iPad, and all other Apple products. The division also caters to home and consumer technology products and services.[6]
  • SARCOM
SARCOM provides IT solutions to businesses.[8]
  • HealthDynamix
HealthDynamix is a division of PC Mall Gov and it is based in Manassas, Virginia. The subsidiary provides computing, management, and IT design for the hospitals, medical clinics, private and public sectors, non-profit organizations, and companies that are engaged in health care.[6]
  • AF Services LLC
AF Services LLC supports administrative and fulfillment functions for its parent company, PC Mall. Based in Torrance, California, it was founded in 2002 to cater services such as finance and accounting, advertising, information technology, operations, sales, human resources talent acquisition and management, and facilities.[9][6]
  • OSRP LLC
OSRP LLC is a wholly owned subsidiary of PC Mall Inc. located in Manila, Philippines. Established in 2005, the company provides back office support for marketing, customer service, IT operations, accounting, and sales of PC Mall and its subsidiaries in the United States.[10]

References

  1. ^ a b c d e f PC Mall, Annual Report 2010 
  2. ^ Manta. "Creative Computers: Company Profile". http://www.manta.com/c/mmft4c8/creative-computers. Retrieved 01 November 2010. 
  3. ^ Bergquist, Lee (27 August 1997). "ComputAbility to be Sold". Milwaukee Journal Sentinel (Milwaukee, Wisconsin): p. 2. http://news.google.com/newspapers?id=RLIeAAAAIBAJ&sjid=KS4EAAAAIBAJ&pg=6114,7590142&dq=computability+milwaukee&hl=en. 
  4. ^ "PC Mall Buys Wareforce Assets". Direct. 10 May 2002. http://directmag.com/news/marketing_pc_mall_buys/. 
  5. ^ Aitoro, Jill (08 September 2006). "PC Mall Gov Buys GMRI's Product Business". CRN. http://www.crn.com/news/components-peripherals/192700236/pc-mall-gov-buys-gmris-product-business.htm;jsessionid=rNeV3Hrl2l6ui7GpV1-Tjw**.ecappj01. Retrieved 28 October 2010. 
  6. ^ a b c d e "PC Mall and its Divisions". PC Mall Inc.. http://www.pcmall.com/n/Pc-Mall-And-Its-Divisions/navLinks-403. Retrieved 28 October 2010. 
  7. ^ PC Mall Gov. "PC Mall Gov About Us". http://www.pcmallgov.com/n/Company/gmriMsc-43. Retrieved 29 October 2010. 
  8. ^ PC Mall Inc.. "SARCOM Inc. Corporate Overview". http://www.sarcom.com/documents/CorporateOverview.pdf. Retrieved 01 November 2010. 
  9. ^ "AF Services LLC" (fact box). Bloomberg Businessweek. http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapId=24842708. Retrieved 28 October 2010. 
  10. ^ "PC Mall subsidiary opens offshore office". The Manila Bulletin (Manila, Philippines). 27 November 2005. http://www.mb.com.ph/node/148770. Retrieved 26 October 2010. 

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