Financial Summary – Third Quarter Fiscal 2012
- Net revenue of $178.6 million, compared to $206.6 million in the third quarter of fiscal 2011
- Gross margin, as a percentage of revenue, of 8.6%, compared to 9.5% in the third quarter of fiscal 2011
- Operating loss of $11.0 million, compared to operating loss of $2.2 million in the third quarter of fiscal 2011
- Non-GAAP operating loss of $4.2 million, compared to non-GAAP operating income of $3.7 million in the third quarter of fiscal 2011
Consolidated Financial Results – Third Quarter Fiscal 2012
ModusLink reported net revenue of $178.6 million for the third quarter of fiscal 2012, a decrease of 13.6%, compared to net revenue of $206.6 million reported in the third quarter of fiscal 2011. The decline in revenue was primarily due to client-specific conditions previously disclosed by the Company as well as the economic environment, especially in Europe.
Revenue from new programs in the third quarter of fiscal 2012 was $21.1 million, compared to $20.9 million in the same period in fiscal 2011. (1)Gross profit for the third quarter of fiscal 2012 was $15.4 million, or 8.6% of revenue, compared to $19.7 million, or 9.5% of revenue, in the third quarter of fiscal 2011. The decrease in gross margin as a percentage of revenue was primarily due to lower revenue. Included in the Company’s operating results for the third quarter of fiscal 2012 were SG&A expenses of $23.5 million, compared to $20.8 million in the same quarter of fiscal 2011. The increase in SG&A was primarily due to professional fees related to the Company’s evaluation of strategic alternatives, the previously disclosed SEC inquiry, planned investments in sales and marketing, and other expenses. ModusLink reported impairment of long-lived assets of $2.1 million for the third quarter of fiscal 2012. These non-cash charges primarily relate to a solution center in Europe that had experienced lower volumes from client programs managed in that facility, and its Tech for Less operations. Restructuring expenses for the third quarter of fiscal 2012 were $0.5 million related to the Company’s cost reduction initiatives.
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