Global DirectMail Corp., Port Washington, NY, had fourth-quarter 1998 sales of $387 million, a 10% increase over year-earlier levels, and annual sales of $1.4 billion, a 25% jump.
While fourth-quarter net income was down slightly in 1998, from $12.9 million in 1997 to $11.2 million, for the year it increased from $38.8 million to $41.3 million. Fiscal 1998 included 12 months of acquired company MidWest Micro, a PC assembler and marketer, compared with three months in 1997.
Global, which had once been solely focused on inbound sales, began changing its operating model to include relationship marketing and the Internet during the second quarter of 1998. Relationship marketing and Internet marketing, said chairman and CEO Richard Leeds in a statement, accounted for 37% of sales in the fourth quarter, compared with 26% a year ago.
Relationship marketing sales increased 41% to a record $132 million, reflecting a 30% increase in staff and a 9% increase in average sales per account manager. Ten million dollars in Internet sales was attributed to upgrades to Web sites. The company also launched or improved several European sites.
The company also announced that it had acquired privately held computer products reseller and Internet marketer Simply Computers Limited of London, for an undisclosed amount in cash. Simply Computers, which also assembles private-label PCs, had $100 million in 1998 net sales, including $20 million in e-commerce sales.
Global DirectMail Corp. sells private-label and name-brand PC hardware, related supplies and industrial products through e-commerce Web sites, direct mail catalogs and relationship marketing to businesses in North America and Europe.
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