ModusLink reported net revenue of $203.4 million for the second quarter of fiscal 2013, an increase of 20.1%, compared to net revenue of $169.4 million reported in the second quarter of fiscal 2012. Revenue from new programs in the second quarter of fiscal 2013 was $44.6 million, compared to $14.1 million in the same period last year, an increase of 216.3%. Driving the increase was a program in Europe for a consumer products client and an engagement with a consumer electronics client that commenced new programs in recent quarters and contributed to revenue in all regions. (1)
Revenue from the Company’s base business increased 2.3% in the second quarter of fiscal 2013 to $158.8 million, compared to $155.3 million in the same period last year. Contributing to the increase was growth in revenue from a program supporting a major product launch for a software client, as well as increased revenue from an aftermarket services program.
Gross profit was $20.3 million, or 10.0% of revenue, for the second quarter of fiscal 2013, compared to $15.4 million, or 9.1% of revenue, in the second quarter of fiscal 2012. The increase in gross margin as a percentage of revenue was primarily due to higher revenue and the effects of the Company’s cost reduction actions.
Operating results for the second quarter of fiscal 2013 included selling, general and administrative expenses (SG&A) of $23.7 million, compared to $23.2 million in the same quarter of fiscal 2012. Included in SG&A for the second quarter of fiscal 2013 were expenses of $4.6 million related primarily to the restatement process and other professional fees.Restructuring expenses for the second quarter of fiscal 2013 were $4.8 million, compared to $4.5 million in the second quarter of fiscal 2012. Restructuring expenses in the second quarter of fiscal 2013 related to previously announced cost reduction actions and included employee severance and other costs. Since the beginning of fiscal 2013, ModusLink has reduced its workforce by approximately 8.0%. Restructuring expenses for the second quarter of the previous year related to the Company’s actions to reduce facility and employee costs associated with facilities in Ireland, France, the Netherlands, China and the U.S.
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