SED Posts First Quarter Loss
SED International swung to a loss of $830,000 in the first quarter, compared to a $738,000 profit the same time the year before.
The company did post net sales of $155.8 million, a 10 percent increase over last year.
“We achieved sales growth in the first quarter, but faced a number of challenges that resulted in a net loss for the period,” Jonathan Elster, President and Chief Executive Officer of SED International, said in a statement. “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%, reflecting continued weak demand for televisions. 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."