ModusLink Global Solutions ™, Inc. (NASDAQ: MLNK) today reported financial results for its second quarter of fiscal year 2013 ended January 31, 2013.
- Net revenue of $203.4 million, compared to $169.4 million in the second quarter of fiscal 2012, an increase of 20.1%
- Gross margin, as a percentage of revenue, of 10.0%, compared to 9.1% in the second quarter of fiscal 2012
- Operating loss of $8.5 million, compared to operating loss of $12.5 million in the second quarter of fiscal 2012
- Non-GAAP operating income of $0.2 million, compared to Non-GAAP operating loss of $3.3 million in the second quarter of fiscal 2012
- Working capital of $99.1 million, compared to $113.5 million at July 31, 2012
As previously reported, the Company sold its Tech for Less (“TFL”) operations on January 11, 2013. Therefore, revenue and results from continuing operations exclude the results of TFL, which have been reclassified to discontinued operations in the Company’s statements of operations for all periods.
Consolidated Financial Results“Since joining ModusLink in January 2013, I have been working with the management team thoroughly reviewing the Company and its operations,” said John J. Boucher, president and chief executive officer of ModusLink Global Solutions. “I believe that ModusLink has the right clients, services and capabilities to drive long-term growth.” “As we develop the long-term strategic plan for the Company to achieve profitable growth, our near-term priorities are continuing to reduce costs, evaluating our global operations, improving asset efficiency and maintaining a high level of client services,” said Boucher. “Results for the second quarter reflected growth in revenue from new programs and stability in our base business. We benefited from increased unit volumes from several clients that resulted in total revenue exceeding our expectations. Although expenses remained high due to costs related to the restatement and other initiatives, we expect to have an improved cost structure as we benefit from continued cost reduction actions,” concluded Boucher.