Lawrenceville, Ga. - SED International Holdings reported a net loss and higher net sales for its fiscal first quarter, ended Sept. 30.
Net sales were $155.8 million up from the prior year's $141.7 million. Net loss was $830,000 compared with net income of $738,000 in the prior year.
"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 $1.0 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."