Second Fiscal Quarter 2012 Financial Results
Net revenue for the three months ended December 31, 2011 decreased $6.0 million, or 3.8%, to $150.9 million from $157 million in last year's comparable period, primarily due to the hard drive shortage. Gross profit was $13.6 million, or 9.0% gross margin, compared to $9.1 million, or 5.8% gross margin in the comparable period last year. Total operating expenses were $9.4 million for the quarter ended December 31, 2011 compared to $7.9 million for the year-ago period. Operating expenses as a percentage of sales were 6.2% compared to 5.0% in the year-ago period. Selling, general and administrative expenses for the second quarter were $8.9 million or 5.9% of revenue, compared to $7.2 million, or 4.6% of revenue, for the year-ago quarter.
The Company reported operating income of approximately $4.3 million in the second quarter compared to operating income of $1.2 million in the second quarter last year. Net income was $3.8 million, or $0.79 per basic and $0.78 per diluted share compared to net income of approximately $0.9 million, or $0.19 per basic and $0.18 per diluted share, in the year-ago period. For the second fiscal quarter of 2012, adjusted EBITDA, a non-GAAP measure, was approximately $4.6 million compared to approximately $1.4 million in the prior year second quarter.
Mr. Elster continued, “SED delivered sequential and year-over-year improvement in net income on slightly lower revenues, demonstrating our ability to manage through challenging market conditions and develop higher margin business categories. We are working very hard to mitigate the issues surrounding hard drive product availability and continue to partner closely with suppliers to maximize the amount of inventory we can procure to satisfy our customers’ needs. We expect a gradual improvement of availability and normalization of margins over the next two quarters.”Year-to-Date Fiscal 2012 Results Net revenue for the six months ended December 31, 2011 was $306.8 million compared to $298.6 million for last year's comparable period. For the six months, gross profit increased to $21.2 million, or 6.9% gross margin, compared to gross profit of $16.3 million or 5.5% gross margin in last year's same period. Total operating expenses were $18.4 million, or 6.0% of revenue for the six months ended December 31, 2011 compared to $13.9 million, or 4.7% of revenue for the year-ago period. Operating income was $2.7 million compared to operating income of $2.4 million in the same period last year. Net income was $2.9 million or $0.61 income per basic and $0.60 per diluted share compared to net income of $1.6 million, or $0.35 per basic and $0.32 per fully diluted share in the year ago period.