In the course of the strategic alternatives review, the Company was presented with proposals by parties attracted to the Company due to its non-operating assets, in particular its tax attributes. The Board intends to continue to review such opportunities and to explore ways to accelerate the realization of the value of the Company’s federal net operating loss carry forwards, which had a balance of $2.0 billion at July 31, 2012.
Financial Summary – First Quarter Fiscal 2013
- Net revenue of $200.7 million, compared to $205.9 million in the first quarter of fiscal 2012
- Gross margin as a percentage of revenue of 9.3%, compared to 12.4% in the first quarter of fiscal 2012
- SG&A expenses of $25.0 million, compared to $22.2 million in the same quarter of fiscal 2012. Included in SG&A for the first quarter of fiscal 2013 were expenses of $4.1 million related primarily to the restatement process and other corporate actions.
- Operating loss of $8.1 million, compared to operating income of $2.2 million in the first quarter of fiscal 2012.
- Net loss of $10.7 million, or $(0.24) per share, compared to net income of $1.1 million, or $0.03 per share, in the first quarter of fiscal 2012
- Non-GAAP operating loss of $2.2 million, compared to income of $7.9 million in the first quarter of fiscal 2012
“As we entered fiscal 2013, we continued to face industry and client-specific challenges particularly from those programs related to notebook computers and microprocessors,” said Steven G. Crane, chief financial officer, ModusLink Global Solutions. “We are encouraged, however, by the growth in revenue from new programs, which more than doubled in the fiscal first quarter compared to the same period of last year, and we expect to achieve growth in revenue from new programs for fiscal 2013. Moving forward, we remain focused on executing on our stated plans to improve operational and financial performance.”