CompuCom disclosed the cyberattack in early March 2021. Later that month, parent ODP predicted that the attack would cost the MSP between $5 million and $8 million in lost revenue, and up to $20 million in cleanup costs.
CompuCom Financial Performance
Fast forward to May 2021, and CompuCom now pegs the cleanup costs at $10 million, and the overall MSP business is struggling.
For Q1 of 2021, CompuCom reported:
Sales of $196 million, down 17% compared to Q1 of 2020.
A $1 million operating loss in Q1 of 2021, compared to $3 million operating income in Q1 of 2020.
ODP says CompuCom’s business was primarily related to “services volumes related to the COVID-19 outbreak and other factors, as well as lower billed service revenues as a result of the malware incident.”
CompuCom Struggles Within Strong MSP, MSSP Markets
Parent ODP has been trying to sell off CompuCom since late 2020. Office Depot acquired CompuCom for $1 billion — a lofty 10 times earnings at the time— in October 2017. The IT services business unit has generated mixed performance under ODP’s ownership.