CompUSA Reports 1st-Quarter Loss

CompUSA Inc., the largest U.S. retailer of personal computers, posted a fiscal first-quarter loss as sales to government and corporate customers declined and costs for its Internet site increased. The company said it also may have to restate earnings pending the outcome of discussions with the U.S. Securities and Exchange Commission over how revenue from the sale of extended service contracts should be recognized. CompUSA had a loss from operations of $2.6 million, or 3 cents a share, in the quarter ended Sept. 25, in contrast with a profit of $9.8 million, or 10 cents, a year earlier. Dallas-based CompUSA has posted lower profits or losses in the last seven quarters. CompUSA’s shares were unchanged at $5.88 on the New York Stock Exchange. The company released its results after the close of regular trading on U.S. exchanges. The stock has dropped about 60% so far this year.