Lawrenceville, Ga. - SED International Holdings, a distributor of CE and related products, reported higher net and operating income on lower net revenue in its fiscal second quarter, ended Dec. 31, 2011.
Quarterly net revenue decreased 3.8 percent to $150.9 million, from $157 million in last year's comparable period due primarily to an industrywide disk-drive shortage related to flooding in Thailand, the location of major suppliers of disk-drive and drive components.
Net income increased 326 percent to $3.8 million, compared with net income of $900,000 million in the comparable period last year.
Operating income increased 246 percent to $4.3 million, compared with operating income of $1.2 million in the comparable period last year.
"SED delivered strong bottom-line results, due primarily to robust holiday sales and a favorable product mix," said Jonathan Elster, president/CEO of SED International. "The e-commerce segment, where we have made considerable investments, was a major driver of our holiday sales strength and our results benefitted from a more favorable product mix. While an industrywide shortage of hard drives from a tragic natural disaster in Thailand resulted in lower revenues, margins improved due to the scarce supply and our careful management of the supply chain."