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<SEC-DOCUMENT>0000899681-07-000643.txt : 20071210
<SEC-HEADER>0000899681-07-000643.hdr.sgml : 20071210
<ACCEPTANCE-DATETIME>20070911094225
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0000899681-07-000643
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		2
FILED AS OF DATE:		20070911

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			SYSTEMAX INC
		CENTRAL INDEX KEY:			0000945114
		STANDARD INDUSTRIAL CLASSIFICATION:	RETAIL-CATALOG & MAIL-ORDER HOUSES [5961]
		IRS NUMBER:				113262067
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		22 HARBOR PARK DR
		CITY:			PORT WASHINGTON
		STATE:			NY
		ZIP:			11050
		BUSINESS PHONE:		5166087000

	MAIL ADDRESS:	
		STREET 1:		11 HARBOR PARK DRIVE
		CITY:			PORT WASHINGTON
		STATE:			NY
		ZIP:			11050

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	GLOBAL DIRECTMAIL CORP
		DATE OF NAME CHANGE:	19950509
</SEC-HEADER>
<DOCUMENT>
<TYPE>CORRESP
<SEQUENCE>1
<FILENAME>filename1.htm
<TEXT>
<HTML>
<HEAD>
<TITLE>Correspondence</TITLE>
</HEAD>
<BODY>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=80% ALIGN=LEFT></TD>
<TD WIDTH=20%>11 Harbor Park Dr<BR>
Port Washington, NY 11050
</TD>
</TR>
</TABLE>
<BR>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<IMG SRC="systemax.jpg"></P>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=70% ALIGN=LEFT></TD>
<TD WIDTH=30%>September 6, 2007
</TD>
</TR>
</TABLE>
<BR><BR>

<!-- MARKER FORMAT-SHEET="Stroock Head Left" FSL="Workstation" -->
<P ALIGN=LEFT><FONT SIZE=3>Mr. William Choi<BR>
Branch Chief<BR>
United States Securities and Exchange Commission<BR>
Division of Corporation Finance<BR>
100 F Street, N.W.<BR>
Washington, D.C. 20549</FONT></P>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=40 ALIGN=LEFT></TD>
<TD WIDTH=60%>Re: Systemax Inc.<BR>
Form 10-K for Fiscal Year Ended December 31, 2006 <BR>
Forms 10-Q for Fiscal Quarters Ended March 31, 2007 <BR>
and June 30, 2007 <BR>
Filed May 10, 2007 and August 9, 2007 <BR>
File No. 1-13792</TD>
</TR>
</TABLE>
<BR><BR>

<!-- MARKER FORMAT-SHEET="Stroock Head Left" FSL="Workstation" -->
<P ALIGN=LEFT><FONT SIZE=3>Dear Mr. Choi:</FONT></P>

<!-- MARKER FORMAT-SHEET="Stroock Para Flush" FSL="Default" -->
<P><FONT SIZE=3>I am writing to you in response to your comment letter dated
August 23, 2007, regarding the above-referenced SEC filings. We have set forth
below our responses to your questions/comments. Your questions/comments appear
in bold print below. </FONT></P>
<BR>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold" FSL="Default" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3><U>Form 10-K
for the Fiscal Year Ended December 31, 2006</U> </FONT></H1>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold" FSL="Default" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3><U>Management's
Discussion and Analysis of Financial Condition and Results of Operations</U>
</FONT></H1>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold" FSL="Default" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3><U>Results of
Operations</U> </FONT></H1>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold" FSL="Default" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3><U>Net Sales</U> </FONT></H1>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=3% ALIGN=LEFT></TD>
<TD WIDTH=3% ALIGN=LEFT><B>1.</B></TD>
<TD WIDTH=94%><B>We note your presentation of European sales "at 2004 exchange
rates" in the tabular presentation of your results of operations. Since this
appears to be a non-GAAP measure, please revise to provide the disclosures
required under Item 10(e) of Regulation S-K. Please refer to Question 17 in
Frequently Asked Questions Regarding the Use of Non-GAAP Financial Measures.</B>
</TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Level 1" FSL="Default" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=6%><FONT FACE="Times New Roman, Times, Serif" SIZE=3>&nbsp; </FONT></TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
The Company has historically presented this disclosure for informative purposes.
However, upon revisiting the disclosure, management does not believe that it
provides particularly useful information for investors and will not be including
it in future filings. If in the future the Company does provide such a
disclosure, it will include a reconciliation table, reasons for the disclosure
and any other pertinent information required under Item 10(e) of Regulation S-K.
</FONT></TD>
</TR>
</TABLE>
<BR><BR>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold" FSL="Default" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3><U>Contractual Obligations</U> </FONT></H1>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=3% ALIGN=LEFT>&nbsp;</TD>
<TD WIDTH=3% ALIGN=LEFT><B>2.</B></TD>
<TD WIDTH=94%>
<B>In future filings, please revise your presentation of the contractual
obligations table to conform exactly to the tabular format prescribed by
paragraph (a)(5)(i) of Item 303 of Regulation S-K. In this regard, we note your
present maturity categories for your contractual obligations: 2007, 2008, 2009,
2010, 2011, and after 2011 do not comply with the prescribed requirements</B>.</TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Level 1" FSL="Default" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=6%><FONT FACE="Times New Roman, Times, Serif" SIZE=3>&nbsp; </FONT></TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
The Company will conform its contractual obligations table to that prescribed by
paragraph (a)(5)(i) of Item 303 of Regulation S-K in future filings.
</FONT></TD>
</TR>
</TABLE>
<BR><BR>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold" FSL="Default" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3><U>Controls and Procedures</U>  </FONT></H1>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=3% ALIGN=LEFT>&nbsp;</TD>
<TD WIDTH=3% ALIGN=LEFT><B>3.</B></TD>
<TD WIDTH=94%>
<B>Please expand your discussion to disclose the specific steps you have taken,
if any, to remediate the significant deficiencies identified in your disclosure.
This comment also applies to your Form 10-Q for the quarter ended June 30,
2007.</B></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Level 1" FSL="Default" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=6%><FONT FACE="Times New Roman, Times, Serif" SIZE=3>&nbsp; </FONT></TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
The Company was not an accelerated filer for the periods ended December 31, 2006
and June 30, 2007. The Company will be an accelerated filer for the year ended
December 31, 2007 and subject for the first time to the internal controls
certification and attestation requirements of Section 404 of the Sarbanes-Oxley
Act of 2002. By the end of the third quarter of 2007, the Company will have
completed a significant portion of its testing of internal control over
financial reporting including remediation testing required for its report and
will be in a better position to further describe remediation steps taken and the
controls put in place to ensure the reliability of financial reporting and will,
if appropriate, add disclosure to the third quarter 2007 10-Q filing. The
Company expects that it will make its most significant remediation efforts in
the fourth quarter of 2007 and therefore expects to make expansive disclosure in
the 10-K. </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Level 1" FSL="Default" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=6%><FONT FACE="Times New Roman, Times, Serif" SIZE=3>&nbsp; </FONT></TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
Although the Company has made progress toward remediation of its significant
deficiencies, we are not yet in the position to change our conclusions. In the
first and second quarters of 2007 the Company was working on structural changes,
including adding qualified financial personnel. The Company has hired a new
Chief Financial Officer, a Director of Internal Audit, internal audit staff,
staff accountants and key business unit Controllers, all of which are a
foundation for addressing our internal control deficiencies. Additionally the
Company has implemented estimation processes for its vendor drop shipments,
sales returns, cooperative advertising, customer rebates, inventory in transit
and other vendor and employee related costs. Substantive remediation work in the
areas of business processes and information technology is ongoing and the
Company anticipates that work will continue through the third and fourth
quarters of 2007. </FONT></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=3% ALIGN=LEFT>&nbsp;</TD>
<TD WIDTH=3% ALIGN=LEFT><B>4.</B></TD>
<TD WIDTH=94%>
<B>We note the significant deficiencies you identified in the evaluation of your
internal control over financial reporting as of December 31, 2006 and as of June
30, 2007. You disclose that as a result of the determination by your Chief
Financial Officer that your disclosure controls and procedures were not
effective as of December 31, 2006 and June 30, 2007, you have applied
compensating procedures and processes as necessary to ensure the reliability of
your financial reporting. Please describe to us, in detail, and disclose the
nature of the compensating procedures and processes you have applied. Please
quantify or provide a range by which your financial statements could be impacted
due to the inadequate estimation processes of vendor drop shipments, sales
returns and allowances, cooperative advertising, customer rebate reserves,
vendor and employee related costs and inventory in transit. To the extent
possible, also quantify the potential impact on your financial statements
pertaining to any of the other significant deficiencies identified in your
disclosures.</B></TD>
</TR>
</TABLE>
<BR>


<!-- MARKER FORMAT-SHEET="Para Flush Level 1" FSL="Default" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=6%><FONT FACE="Times New Roman, Times, Serif" SIZE=3>&nbsp; </FONT></TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
The Company implemented more substantive compensating procedures such as
detailed account reconciliation processes including data analysis, testing of
underlying data and analytical procedures, additional levels of management
review and approval of account reconciliations and financial reports and
financial statement close schedules, all designed to ensure that the financial
statements are accurate. </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Level 1" FSL="Default" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=6%><FONT FACE="Times New Roman, Times, Serif" SIZE=3>&nbsp; </FONT></TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
The Company had identified certain control weaknesses around certain individual
estimation processes such as vendor drop shipments, sales returns allowances,
cooperative advertising reserves, customer rebate reserves, vendor and employee
related costs and inventory in transit that, when aggregated, did rise to the
level of a "significant" deficiency. The Company's conclusion was based upon a
qualitative analysis of the control weaknesses in the aggregate and was not
primarily based on a quantitative analysis of errors as the Company performed
additional substantive procedures. Given the subjective nature of any
quantitative analysis and the impact of the additional procedures performed
which mitigated any undetected errors, management focused on the qualitative
factors to define the significant deficiencies. Management also believes the
procedures performed have reduced the risk of undetected errors well below the
materiality thresholds (i.e., 5% of pre tax income). The Company does not
believe that, when aggregated, these items did rise to the level of a "material"
weakness. </FONT></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=3% ALIGN=LEFT>&nbsp;</TD>
<TD WIDTH=3% ALIGN=LEFT><B>5.</B></TD>
<TD WIDTH=94%>
<B>Please expand your disclosure to indicate whether there were any changes in
your internal control over financial reporting that occurred during the last
fiscal quarter that has materially affected, or is reasonably likely to
materially affect your internal control over financial reporting. Refer to Item
308 (c) of Regulation S-K.</B></TD>
</TR>
</TABLE>
<BR>


<!-- MARKER FORMAT-SHEET="Para Flush Level 1" FSL="Default" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=6%><FONT FACE="Times New Roman, Times, Serif" SIZE=3>&nbsp; </FONT></TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
In the quarter ended December 31, 2006 the Company was in the process of making
changes to its internal control in anticipation of the Company's first
management report on internal control over financial reporting for the year
ended December 31, 2007 and therefore decided to disclose current significant
deficiencies. However the Company was not an accelerated filer and not subject
to Item 308 (c) as of December 31, 2006. Although the Company put in place
compensating procedures to address the significant deficiencies as noted in
response to comment four, the Company made no changes to its internal control
over financial reporting that had a material affect or were reasonably likely to
have a material affect over the Company's internal controls. The Company will,
in future filings, disclose all changes to internal controls that will have, or
that the Company reasonably expects will have, a material affect on internal
control over financial reporting. </FONT></TD>
</TR>
</TABLE>
<BR><BR>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold" FSL="Default" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3><U>Consolidated
Balance Sheets</U> </FONT></H1>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=3% ALIGN=LEFT>&nbsp;</TD>
<TD WIDTH=3% ALIGN=LEFT><B>6.</B></TD>
<TD WIDTH=94%>
<B>Please disclose separately in the balance sheet or in the notes to your
financial statements, any item, if any, in excess of five percent of total
current liabilities included in your accrued expenses and other current
liabilities line item.</B></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Level 1" FSL="Default" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=6%><FONT FACE="Times New Roman, Times, Serif" SIZE=3>&nbsp; </FONT></TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
There are no individual items in excess of five percent of total current
liabilities other than those listed in the notes to the financial statements.
</FONT></TD>
</TR>
</TABLE>
<BR><BR>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold" FSL="Default" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3><U>Note 1.
Summary of Significant Accounting Policies</U> </FONT></H1>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold" FSL="Default" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3><U>Revenue
Recognition and Accounts Receivable</U> </FONT></H1>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=3% ALIGN=LEFT>&nbsp;</TD>
<TD WIDTH=3% ALIGN=LEFT><B>7.</B></TD>
<TD WIDTH=94%>
<B>We note your disclosure that you recognize sales of products when delivery
has occurred and that generally, the revenue recognition criteria are met at the
time the product is received by the customers and title and risk of loss have
transferred. Please tell us how you determine when this occurs. Also, please
tell us whether your sales terms are consistent across all subsidiaries and all
sales agreements and whether shipping terms are primarily FOB shipping point or
destination. If the latter, in your response, specifically address the processes
you have in place to determine when title and risk of loss have transferred to
the customer.</B></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Level 1" FSL="Default" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=6%><FONT FACE="Times New Roman, Times, Serif" SIZE=3>&nbsp; </FONT></TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
As disclosed to the SEC in a correspondence dated October 2005, the Company
determines when title and risk of ownership transfers through receipt of
delivery confirmations from its freight carriers. Sales terms, such as net
payment terms, may vary by subsidiary and sales agreement. Shipping terms are
primarily FOB shipping point for all subsidiaries. However, even though under
the terms of shipping title transfers to the customer upon shipment, the
Company's practice is to cover losses that occur during shipment transit,
resulting in the Company retaining risk of loss which in effect is the economic
equivalent of title passage at the time of receipt of the product by the
customer. Therefore the Company's accounting practice is to recognize revenue
upon receipt of product by the customer. The Company analyzes shipping data for
approximately the last two weeks of a quarter end to determine an average number
of days to delivery. The Company defers recognition of revenue, and related cost
of sales, for this number of days until the next reporting period. </FONT></TD>
</TR>
</TABLE>
<BR><BR>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold" FSL="Default" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3><U>Exhibit 23.2</U> </FONT></H1>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=3% ALIGN=LEFT>&nbsp;</TD>
<TD WIDTH=3% ALIGN=LEFT><B>8.</B></TD>
<TD WIDTH=94%>
<B>To the extent your future filings require a consent from your independent
registered public accounting firm, please ensure that the exhibit is filed with
a conformed signature. Refer to Rule 302 of Regulation S-T.</B></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=6% ALIGN=LEFT></TD>
<TD WIDTH=94%>
The Company will ensure that in future filings conformed signatures are not
omitted.</TD>
</TR>
</TABLE>
<BR><BR>


<!-- MARKER FORMAT-SHEET="Head Major Left Bold" FSL="Default" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3><U>Exhibit 31.1
and Exhibit 31.2</U> </FONT></H1>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=3% ALIGN=LEFT>&nbsp;</TD>
<TD WIDTH=3% ALIGN=LEFT><B>9.</B></TD>
<TD WIDTH=94%>
<B>We note that the identification of the certifying individual at the beginning
of the certification required by Exchange Act Rule 13a-14(a) also includes the
title of the certifying individual. The identification of the certifying
individual at the beginning of the certification should be revised so as not to
include the individual's title. This comment also applies to your Form 10-Q for
the quarter ended June 30, 2007.</B></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=6% ALIGN=LEFT></TD>
<TD WIDTH=94%>
The Company will revise the certification language in future filings.</TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=3% ALIGN=LEFT>&nbsp;</TD>
<TD WIDTH=3% ALIGN=LEFT><B>10.</B></TD>
<TD WIDTH=94%>
<B>We note that the certification you provide are inconsistent with the
requirements of Item 601(b)(31) of Regulation S-K. As such, please revise the
language of paragraphs 2, 3, 4, 4(a), 4(c), 5, 5(a) and 5(b) of the
certifications. Please refer to Release No. 33-8238 for an example
certification, at <U>http://www.sec.gov/rules/final/33-8238.htm</U>. This
comment also applies to your Form 10-Q for the quarter ended June 30, 2007</B>.</TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=6% ALIGN=LEFT></TD>
<TD WIDTH=94%>
The Company will revise the certification language in future filings.</TD>
</TR>
</TABLE>
<BR><BR>


<!-- MARKER FORMAT-SHEET="Stroock Head Left" FSL="Default" -->
<P ALIGN=LEFT><FONT SIZE=3><U>Form 10-Q for the Fiscal Quarter Ended June 30,
2007</U></FONT></P>
<BR>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold" FSL="Default" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3><U>Condensed
Consolidated Statements of Cash Flows (Unaudited), page 6</U> </FONT></H1>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=3% ALIGN=LEFT>&nbsp;</TD>
<TD WIDTH=3% ALIGN=LEFT><B>11.</B></TD>
<TD WIDTH=94%>
<B>Please revise your statements of cash flows to present the proceeds from
issuance of common stock and your repurchase of common stock on a gross basis
rather than a net basis. This comment also applies to your net presentation in
the Condensed Consolidated Statement of Stockholders' Equity (Unaudited) at page
7.</B></TD>
</TR>
</TABLE>
<BR>


<!-- MARKER FORMAT-SHEET="Stroock Para Flush" FSL="Workstation" -->
<P><FONT SIZE=3>The Company abbreviated its presentation of this item as the
amount did not exceed 10% of the average of net cash flows from operating
activities for the most recent three years (Article 10 Rule 10-01 (a) (4) of
Regulation S-X). The Company will revise its statements of cash flows and
stockholders' equity in future filings to reflect the proceeds from issuance of
common stock and repurchase of common stock on a gross basis rather than a net
basis. </FONT></P>
<BR>

<!-- MARKER FORMAT-SHEET="Stroock Head Left" FSL="Default" -->
<P ALIGN=LEFT><FONT SIZE=3><U>Controls and Procedures, page 16</U></FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold" FSL="Default" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3><U>Changes in
Internal Control Over Financial Reporting, page 17</U> </FONT></H1>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=3% ALIGN=LEFT>&nbsp;</TD>
<TD WIDTH=3% ALIGN=LEFT><B>12.</B></TD>
<TD WIDTH=94%>
<B>We note your disclosure that "management is not aware" of any changes in
internal control over financial reporting "other than those described above"
that occurred during the quarter ended June 30, 2007 that materially affected,
or were reasonably likely to materially affect your internal control over
financial reporting. Please revise to state clearly, if correct, that there were
changes in your internal control over financial reporting that occurred during
this quarter that have materially affected, or are reasonably likely to
materially affect your internal control over financial reporting. Also expand
your disclosure to clarify the nature of those changes.</B> </TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Level 1" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=6%><FONT FACE="Times New Roman, Times, Serif" SIZE=3>&nbsp; </FONT></TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
There were no changes in internal control over financial reporting that occurred
during the quarter ended June 30, 2007. The Company will revise this language in
future filings to state more clearly the events of the quarter. </FONT></TD>
</TR>
</TABLE>
<BR><BR>

<!-- MARKER FORMAT-SHEET="Stroock Para Flush" FSL="Default" -->
<P><FONT SIZE=3>We welcome the opportunity to answer any questions you may have
to our responses. We request confirmation from the staff that no amendment will
be required to the above-referenced filings and that any revisions necessary
will be required in future filings only. </FONT></P>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=50% ALIGN=LEFT></TD>
<TD WIDTH=50%>
Sincerely,<BR><BR>

/s/ Lawrence P. Reinhold<BR>
Lawrence P. Reinhold<BR>
Systemax Inc.<BR>
Executive Vice President<BR>
and Chief Financial Officer</TD>
</TR>
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