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."