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CDW's Average Daily Sales Increase 4.9 Percent In July 2006
VERNON HILLS, Ill. - August 10, 2006 - CDW Corporation (NASDAQ: CDWC), a leading provider of technology products and services to business, government and education, today announced average daily sales for July 2006 were $26.268 million, an increase of 4.9 percent compared to average daily sales of $25.032 million for July 2005. Total sales for July 2006 were $525.4 million, an increase of 4.9 percent compared to total sales of $500.6 million for July 2005. There were 20 billing days in July 2006 and 20 billing days in July 2005.
Average daily sales for the public sector segment increased 17.5 percent and average daily sales for the corporate sector segment decreased 1.1 percent.
As previously announced, the Company launched a major initiative in the first half of 2006 to establish a strategic platform for future growth through the geographic realignment of the corporate sector. The realignment involved the segmentation of a majority of the Company's medium and large corporate customers into five geographic regions and 32 districts. Account managers serving medium and large corporate sector customers were realigned accordingly, and are now in the process of building relationships with their in-district customers.
The extensive customer segmentation strategy developed by the public sector over the past several years has been highly successful in driving growth through improved understanding of specific customer needs. The geographic realignment of the corporate sector, which is the largest customer segmentation initiative in the Company's history, is based on the long-term advantages realized by the public sector's segmentation strategy.
The magnitude of the geographic realignment of the corporate sector is significant. Account managers are working to build relationships with customers whose accounts have been transferred, which is an ongoing process. The investment of time to build these customer relationships affected corporate sector sales growth in July 2006. The Company is disappointed with corporate sector results for July 2006, but is pleased with the continuing success of the public sector. The Company firmly believes that the geographic realignment of the corporate sector will provide long-term benefits including the enhanced ability to serve customers, drive new business, maximize account coverage, create additional ownership and accountability for the medium and large business sales teams, and align geographically with the Company's vendor and service partners.
Product categories that achieved the strongest year-over-year unit volume growth for the month on an average daily basis included: notebook CPUs, software, video, memory and input devices.
The Company plans to announce August 2006 sales on Tuesday, September 12, 2006. August 2005 had 23 billing days and August 2006 will have 23 billing days.
Forward Looking Statement
Any forward-looking statements contained in this release are based on the Company's beliefs and expectations as of the date of this release and are subject to certain risks and uncertainties which may have a significant impact on the Company's business, operating results or financial condition. Should any risk or uncertainty materialize, or should underlying assumptions prove incorrect, actual results or outcomes may vary materially from those described in forward-looking statements. Factors affecting the Company's business and prospects are discussed in the Company's filings with the Securities and Exchange Commission.
About CDW
CDW®, ranked No. 343 on the FORTUNE 500, is a leading provider of technology solutions for business, government and education. CDW is a principal source of technology products and services including top name brands such as Acer, Adobe, Apple, Cisco, HP, IBM, Lenovo, Microsoft, Panasonic, Samsung, Sony, Symantec, Toshiba and ViewSonic.
CDW was founded in 1984 and employs approximately 4,450 coworkers. In 2005, the company generated sales of $6.3 billion. CDW's direct model offers one-on-one relationships with knowledgeable account managers; purchasing by telephone, fax, the company's award-winning CDW.com web site, customized CDW@work™ extranets, CDWG.com web site and macwarehouse.com web site; custom configured solutions and same day shipping; and pre- and post-sales technical support, with approximately 120 factory-trained and A+ certified technicians on staff.
CDW is a registered trademark and CDW@work is a trademark of CDW Corporation. Other company and product names may be trademarks of their respective owners.
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