Lawrenceville, Ga. – SED International Holdings, a distributor of computer technology, CE and other home products, reported lower net sales and a net loss in its fiscal third quarter ended March 31.
Net sales were $128.8 million for the quarter, a 7.1 percent decrease over net sales of $138.7 million reported for the same period last year. The decrease was driven by weak demand in U.S. IT storage system products and across Latin American operations, SED said.
The company reported a net loss $4.2 million for the fiscal 2013 third quarter, compared to income of $400,000 for the same period last year.
“After a relatively strong revenue performance in the previous quarter, we were disappointed to see the drop in revenue and margins in our third fiscal quarter,” said Bob O’Malley, president and CEO of SED International.
“The results necessitated us to accelerate our actions to create a new SED, one built from the core out. The changes we announced on April 4, 2013, will dramatically enhance our ability to reach profitability in the short term. The steps we are taking include a leaner senior management, a return to our core markets and vendors, and an increase in leverage of our fixed distribution assets.”