“Initiatives underway to address the current state of our business include a reorganization of our U.S. sales, purchasing and marketing functions into business units to better focus within specific customer segments, and evaluation of outsourcing options that will result in increased efficiencies and speed of execution. We are also aggressively working to size our business for the current environment, and have recently implemented workforce reductions and temporary reductions in work hours in different parts of our business. We are committed throughout the organization to delivering sustained value to our customers, vendors and shareholders while we build on SED’s reputation as a leader in logistical excellence and world-class service throughout the regions and segments we compete in.”Fourth Quarter Fiscal 2012 Financial Results, Year-over-year Comparisons:
- Net sales for the fourth quarter ended June 30, 2012 were $131.8 million, compared to $152.6 million in the prior-year fourth quarter. An Industry-wide decline in technology and consumer electronics demand, coupled with lingering effects from hard drive shortages, negatively impacted net sales in the fourth quarter compared to the prior year.
- Gross margin increased to 5.2%, compared to 4.7% in the comparable period last year due in part to hard-drive pricing and also to higher sales and margins on housewares, small appliance and personal care products.
- The Company reported an operating loss of $1.7 million in the fourth quarter compared to operating income of $0.9 million in the prior-year fourth quarter. Fourth quarter 2012 net loss was $2.0 million, or $(0.41) per basic and diluted share compared to net income of approximately $0.4 million, or $0.10 per basic and $0.09 per diluted share, compared to the same period last year.