LAWRENCEVILLE, GA. –
SED International Holdings
reported a net loss and higher net sales for its
fiscal first quarter, ended Sept. 30.
Net loss was $830,000, compared with net income
of $738,000 in the prior year. Net sales were
$155.8 million, up from the prior year’s $141.7 million.
“We achieved sales growth in the first quarter, but
faced a number of challenges that resulted in a net
loss for the period,” said Jonathan Elster, president/
CEO. “Our product mix was weighted more heavily
toward lower-margin products, including hard
drives, and our higher-margin consumer electronics
sales were down 13.5 percent, reflecting continued
weak demand for televisions.”
Elster noted, “This softness translated to our
bottom line, which was further effected by approximately
$1 million of unfavorable foreign currency
transaction losses in Latin America and one-time
severance and relocation fees.”
He noted, “Overall, our business fundamentals remain
healthy, as evidenced by our 10 percent sales
growth year over year. We are increasing sales of
recently added new brands and have added talented
professionals to help drive sales of SED’s
product lines.”
The distributor’s investment in Lehrhoff “also
adds higher-margin small appliances, housewares
and personal care product items to our product mix,
as well as provides SED with a Northeast U.S. hub
for distribution of all SED products, thereby reducing
delivery times and shipping costs to this important
geographic region.”
