Cost of sales declined 16.9 percent to $73.9 million from $88.9 million in the prior-year quarter. The company’s gross profit margin was 23.0 percent compared with 27.1 percent in the prior-year and 23.6 percent in the second quarter. The lower gross margin compared to the prior year reflects lower volume, higher wage rates, higher raw material costs, and lower pricing for network and power products. Compared to the second quarter, gross profit margin decreased slightly mainly due to lower pricing and unfavorable mix of network products.Selling, general and administrative expenses—which include research and development—decreased 20.9 percent to $19.8 million from $25.0 million in the third quarter of 2010. The decrease in spending was due to expense reduction actions announced earlier in 2011 and prudent expense management in light of lower sales.
Pulse Electronics Corporation Reports Third Quarter Results
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