This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

SED International Releases Second Quarter Financial Results

Stocks in this article: SED

SED International Holdings, Inc. (NYSE MKT: SED), a multinational supply chain management provider and distributor of leading computer technology, computer products, consumer electronics, small appliances, housewares and personal care products, today announced financial results for the six months and fiscal 2013 second quarter ended December 31, 2012.

Net sales of $156.3 for fiscal 2013 second quarter, represented a 23.7% increase over net sales of $126.4 million reported in the fiscal 2013 first quarter. Net sales for the quarter were up 3.5% for the second quarter compared to $150.9 million in the second quarter last year. The increase was driven by strong sales in the consumer product categories which include tablets, notebooks, and television products.

Gross margin decreased to 5.1% during the quarter compared to 9% for the same period last year. Our current quarter margin was closer to historical levels. Last year’s gross margin was unnaturally high due to increased margins on hard drives, driven by industry supply constraints.

Including restructuring costs, the company reported a net loss of $1.6 million for the second quarter, compared to net income of $3.8 million in the second quarter last year. Basic and diluted loss per share was $0.32 for the current quarter compared to earnings of $0.79 per basic share and $0.78 per diluted share for the second quarter last year. Other items include:

  • The company incurred restructuring costs of $0.8 million during the second quarter which were attributable to the organizational restructuring of the management team including severance payments, change in the organizational alignment of sales, product management, and marketing, and information technology outsourcing. These organizational changes were made to provide a leaner internal services organization and improved support for our sales and marketing organization. Benefits from these restructuring actions are expected in future periods.
  • Normalized adjusted net loss for the current quarter was $0.7 million, after deducting restructuring related costs and stock-based compensation expense, compared to a Generally Accepted Accounting Principles (“GAAP”) net loss of $1.6 million.
  • Non-GAAP adjusted EBITDA, which also excludes restructuring related costs and stock-based compensation expense, was $3,000 for the current quarter and a loss of $1 million for the six months ended December 31, 2012, compared to non-GAAP adjusted EBITDA of $4.6 million for the same quarter last year and $3.3 million for the six months ended December 31, 2011.
  • Inventory turns improved to 10.3 for the fiscal 2013 second quarter compared to 8.8 turns for the same period a year ago and from 8.1 turns for the fiscal 2013 first quarter.

Cash and cash equivalents were $12.5 million, net trade receivables were $64.6 million, net inventories were $61.6 million and working capital was $16.6 million at December 31, 2012. Cash increased at quarter end due to the receipt of approximately $7.3 million on the last day of the quarter. The cash receipts have since been applied against our borrowings.

1 of 4

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,778.15 +421.28 2.43%
S&P 500 2,061.23 +48.34 2.40%
NASDAQ 4,748.3960 +104.0840 2.24%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs