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SED Posts Higher FY Sales, Income

9/14/2011 04:36:13 PM Eastern

Lawrenceville, Ga.
- SED International Holdings reported higher sales and net income in its fiscal
year, ended June 30.

Net sales increased
12.1 percent to $607 million year over year, while net income grew to $3.1
million, compared with $302,000 in fiscal year 2010. Excluding a $1.6 million
provision in the fourth quarter of fiscal 2010, net income increased 64 percent
year over year, the company said.

Microcomputer
product sales, including handling revenue, increased 16.1 percent to $537.7
million. Consumer electronics product sales declined 11.7 percent to $69.3
million.

Domestic sales,
including exports and after eliminations, increased 10.2 percent to $467.9
million. U.S. export business sales for the period, net of eliminations, grew
by 5.5 percent to $89.8 million, from $85.1 million in fiscal year 2010.

Latin America
sales increased 19.7 percent to $139.1 million after translation into U.S.
dollars. When measured in local currencies, Latin American sales increased 15.4
percent.

In the fourth
quarter, year-over-year net sales increased 14.6 percent to $152.6 million. Net
income was $443,000, compared with $663,000 in the fourth quarter of fiscal
2010.

Operating income
declined 6 percent to $933,000 due primarily to lower gross margins and a 9.7
percent increase in SG&A expense associated primarily with higher selling
costs related to increased sales.

"Although our
business was impacted in the fourth quarter by a decline in consumer confidence
and weak margins resulting from sales mix of lower margin products, our
fundamentals remain strong," said Jonathan Elster, president/CEO of SED. "We
are focusing our sales efforts on higher margin product categories and expect
that our new vendor additions as well as new products and a Northeast U.S.
presence, obtained by the ArchBrook Laguna transaction, will restore and
eventually improve operating margins to historical levels."