Consolidated Financial Results – First Quarter Fiscal 2013
ModusLink reported net revenue of $200.7 million for the first quarter of fiscal 2013, a decrease of 2.6% compared to net revenue of $205.9 million reported in the first quarter of fiscal 2012. The decline was primarily due to lower unit volumes from significant client programs related to notebook computers and microprocessors, which impacted financial results in each of the Company’s geographical segments.
Revenue generated from new programs for the first quarter of fiscal 2013 was $39.0 million, an increase of 169.0% compared to the first quarter of fiscal 2012 (1). The increase in revenue from new programs was primarily driven by a previously disclosed large new client program in the consumer products market, which drove total revenue growth in Europe, and a new program for a consumer electronics company.
Gross profit for the first quarter of fiscal 2013 was $18.7 million, or 9.3% of revenue, compared to $25.5 million, or 12.4% of revenue, in the first quarter of fiscal 2012. The decline was primarily driven by unfavorable revenue mix.Operating loss for the first quarter of fiscal 2013 was $8.1 million, compared to operating income of $2.2 million in the first quarter of fiscal 2012. The operating loss was due to lower gross margin and higher selling general and administrative costs, and restructuring expenses, compared to the same period in fiscal 2012. Included in the Company’s operating results for the first quarter of fiscal 2013 were selling, general and administrative expenses (SG&A) 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. Restructuring charges for the first quarter of fiscal 2013 were $1.5 million related to reductions in the Company’s indirect labor workforce, compared to $0.8 million in the first quarter of the previous year related to employee severance costs and actions to restructure facilities.