SED International Holdings, Inc. (NYSE MKT: SED), a multinational supply chain management provider and distributor of leading computer technology, consumer electronics, small appliances, housewares and personal care products, today announced financial results for the first quarter ended September 30, 2012.
A summary of the first fiscal quarter results are as follows:
- Net sales for the first quarter ended September 30, 2012 were $126.4 million, a decrease of 18.9%, from $155.8 million in the prior-year first quarter. Net sales were negatively impacted by the weak demand for our PC, notebooks and television products which reflects similar declines within the microcomputer industry.
- Gross margin increased to 5.6%, compared to 4.8% in the comparable period last year due primarily to higher margins earned on small appliance, housewares and personal care products as well as higher margins in our Latin American subsidiaries due to Argentine governmental import restrictions causing tighter inventory supply which increased pricing and margins.
- The Company reported an operating loss of $1.6 million in the first quarter compared to an operating loss of $1.5 million in the prior-year first quarter. First quarter net loss was $2.1 million, or $(0.43) per basic and diluted share compared to a net loss of approximately $0.8 million, or $(0.18) per basic and diluted share in the same period last year.
- EBITDA was a negative $1.3 million for the quarter ended September 30, 2012 and 2011.
- Cash and cash equivalents were $3.5 million, net trade receivables were $52.5 million, net inventories were $55.7 million and working capital was $18.1 million
- Shareholders’ equity at the end of the quarter was $22.3 million, or $4.50 per basic and diluted share
“Our performance during the quarter was disappointing with revenue down particularly in our core PC and TV businesses and our delay in adding profitability through the integration of our Lehrhoff acquisition,” said Bob O’Malley, president and chief executive officer of SED International. “While we have some bright spots in our Latin America businesses, we are taking actions in the U.S. on several fronts this quarter to increase revenue through better selling and marketing alignment with our strategic vendors and to manage our operating expenses through the restructuring of operations and the implementation of selective outsourcing initiatives. We are committed to returning SED International to profitability.”