8-K

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported): July 12, 2005

Bell Industries, Inc.
__________________________________________
(Exact name of registrant as specified in its charter)

California	001-11471	95-2039211
_____________________ (State or other jurisdiction	_____________ (Commission	______________ (I.R.S. Employer
of incorporation)	File Number)	Identification No.)
1960 E. Grand Avenue, Suite #560, El Segundo, California		90245
_________________________________ (Address of principal executive offices)		___________ (Zip Code)

Registrant’s telephone number, including area code: 310-563-2355

Not Applicable
______________________________________________
Former name or former address, if changed since last report

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[  ]  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[  ]  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[  ]  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[  ]  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 8.01 Other Events.

Bell Tech.logix Group ("BTL"), an operating unit of Bell Industries, Inc. ("Bell"), has been informed by its largest customer, Philip Morris USA, of its intention to transition certain outsourcing services and product sales provided by BTL to a new vendor on or before the contract termination date of April 2006. The full text of the press release is furnished as Exhibit 99.1 to this report.

Item 9.01 Financial Statements and Exhibits.

Attached as Exhibit 99.1 to this report is Bell's press release furnished under Item 8.01 of this report.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	Bell Industries, Inc.
July 18, 2005	By:	Russell A. Doll
		Name: Russell A. Doll
		Title: Acting President and Chief Executive Officer

Exhibit Index

Exhibit No.	Description
99.1	July 18, 2005 Press Release by Bell Industries, Inc.

EX-99.1

EXHIBIT 99.1

CONTACT:
Bell Industries, Inc.
Russell A. Doll/Mitchell I. Rosen
310-563-2355

PondelWilkinson Inc.
Roger S. Pondel/Angie H. Yang 310-279-5980	FOR IMMEDIATE RELEASE

Bell Tech.logix Announces Change in Outsourcing and Product Engagement

El Segundo, California – July 18, 2005 – Bell Tech.logix Group (BTL), an operating unit of Bell Industries, Inc. (AMEX:BI), today said its largest customer, Philip Morris USA, indicated to BTL its intention to transition certain outsourcing services and product sales provided by BTL to a new vendor on or before the contract termination date of April 2006.

BTL said the portion of the engagement covered by this contractual relationship generated approximately $2 million in services revenue and $800,000 in product sales for BTL during the first quarter ended March 31, 2005. For the full year ended December 31, 2004, services revenue from this portion of the engagement totaled approximately $8 million and product revenue amounted to $10 million, of which $6.9 million was related to one large product deployment project.

Russell A. Doll, president of BTL and acting chief executive officer of Bell Industries, said the company is awaiting the final determination of the details of the transition, including the timing of the transition, pending the customer’s discussions with its new vendor.

BTL offers a comprehensive portfolio of technology products and managed lifecycle services, including planning, product sourcing, deployment and disposal, and support services. Support services include help desk support, desk side support, technical maintenance services, and reverse logistics and depot services.

Through other operating units, Bell distributes after-market parts and accessories to the recreational vehicle market and manufactures and sells standard and custom magnetic components used in electronic applications for computer, medical, lighting and telecommunication equipment.

Certain matters discussed in this news release are forward looking statements that involve risks and uncertainties that could cause actual results to differ materially from current trends. These include, but are not limited to, the intention, timing and impact of BTL’s largest customer to transition certain services and product sales to a new vendor, and other factors described in the company’s public filings from time to time.

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