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FORM 10-Q

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

(Mark One)

 [ x ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)

 OF THE SECURITIES EXCHANGE ACT OF 1934.

For the quarterly period ended: September 30, 2004

OR

 [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)

 OF THE SECURITIES EXCHANGE ACT OF 1934

 for the transition period from __________ to __________

Commission File Number: 0-25790

PC Mall, Inc.

(Exact name of registrant as specified in its charter)

2555 West 190th Street, Suite 201

Torrance, CA 90504

(address of principal executive offices)

(310) 354-5600

(Registrant's telephone number, including area code)

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.  Yes [X]    No [  ]

Indicate by check mark whether the Registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act). Yes [ ] No [X]

There were 11,532,584 outstanding shares of common stock at November 12, 2004.

PC MALL, INC.

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PART I - FINANCIAL INFORMATION

ITEM 1.   FINANCIAL STATEMENTS

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PC MALL, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except share data)

See notes to condensed consolidated financial statements.

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PC MALL, INC.

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

(unaudited, in thousands, except per share data)

See notes to condensed consolidated financial statements.

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PC MALL, INC.

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY

(unaudited, in thousands)

See notes to condensed consolidated financial statements.

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PC MALL, INC.

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(unaudited, in thousands)

See notes to condensed consolidated financial statements.

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PC MALL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

1.       Basis of Presentation 

The consolidated interim financial statements include the accounts of PC Mall, Inc., a Delaware corporation (formerly IdeaMall, Inc. and Creative Computers, Inc.) and its wholly-owned subsidiaries (collectively, the “Company”) and have been prepared without audit pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such regulations.  These financial statements should be read in conjunction with the audited financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2003 and with the Company’s Quarterly Reports on Form 10-Q for the periods ended March 31, 2004 and June 30, 2004.

In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments consisting solely of normal recurring items necessary for a fair statement of the financial position of the Company at September 30, 2004 and December 31, 2003 and the results of operations for the three and nine months ended September 30, 2004 and 2003, and cash flows for the nine months ended September 30, 2004 and 2003.  The results of operations for the interim periods are not necessarily indicative of the results of operations for the full year.

Stock Based Compensation

The Company accounts for its stock option plans using the intrinsic value-based method of accounting prescribed by Accounting Principles Board Opinion No. 25, "Accounting for Stock Issued to Employees," ("APB 25") and related interpretations.  Under this method, compensation expense is recorded on the date of grant only if the current market price of the underlying common stock exceeded the exercise price.  Statement of Financial Accounting Standards No. 123, "Accounting for Stock-Based Compensation," ("SFAS 123") established accounting and disclosure requirements using a fair value-based method for stock option plans.  As allowed by SFAS 123, the Company continues to apply the intrinsic value-based method of accounting, and has adopted the disclosure requirements of SFAS 123.  Accordingly, the Company does not record compensation expense on issuance of stock options to employees, as all options issued to employees to date were granted at the then-current market value at the date of grant, except for the option grant in March 2004 by the Company's subsidiary eCOST.com, Inc. ("eCOST.com") as discussed in Note 6.

Had compensation cost on all grants been determined consistent with SFAS 123, the Company’s net income and earnings per share would have been reduced to the pro forma amounts shown below (in thousands, except per share amounts).