Tuesday, supply chain management solutions provider ModusLink Global Solutions, Inc. (MLNK) said its fourth quarter loss narrowed from last year, as higher gross margins and lower expenses helped overcome the impact of lower unit sales.
The Waltham, Massachusetts-based company's fourth quarter net loss narrowed to $4.1 million or $0.09 per share from a net loss of $24.7 million or $0.53 per share in the fourth quarter of 2008.
Revenue for the quarter decreased 18.5% to $225.2 million from $276.3 million a year ago. Segment wise, revenue from new engagements decreased by $10.9 million or 21.8% while revenue from base business declined by $40.2 million or 17.8%.
Gross margin for the quarter increased to 13.2% from 10.4% in the fourth quarter of fiscal 2008. The increase in gross margin was attributed primarily to favorable product mix and cost reduction initiatives.
Operating income for the quarter improved to $0.9 million, compared to an operating loss of $17.4 million in the comparable quarter last year. The improvement was due to a $7.2 million or 25.3% reduction in selling, general, and administrative expenses, which was partially offset by a $4 million increase in restructuring costs. In the fourth quarter 2008, the company had a goodwill impairment charge of $14 million, while no such charges recorded this year.
Excluding net charges related to depreciation, amortization, stock-based compensation, restructuring and non-cash charges, non-GAAP operating income increased 145.1% to $15.3 million from $6.3 million last year.
For fiscal 2009, the company reported a net loss of $193.5 million or $4.26 per share, compared to net income of $9.1 million or $0.19 per share for the prior year. Revenue dipped to $1.01 billion from $1.07 billion last year. Gross margin decreased to 12.1% from 12.9% a year ago.
Looking forward, the company said it is continuing to to see lower unit volume move through the supply chain and caution among its clients regarding implementing new programs. In its seasonally strong first quarter, the company expects revenues to be higher than the fourth quarter, although lower than the comparable quarter of fiscal 2008.
MLNK closed Tuesday's regular trading at $8.81, down $0.11 or 1.23%, on a volume of 248 thousand shares.
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