SED International Holdings Inc. (SED) reported a third-quarter net loss $4.2 million compared to income of $0.4 million for the same period last year. Loss per share was $0.83 for the latest-quarter compared to earnings of $0.09 per share for the third quarter last year.
Normalized loss per share for the quarter was $0.82, compared to a normalized net income per share of $0.10 last year.
Gross margin decreased to 3.6% during the quarter compared to 6.2% for the same period last year. The latest-quarter margin was negatively impacted by product mix, lower sales volumes and related product rebates, and non-cash inventory reserves. Last year's gross margin was unnaturally high due to increased margins on hard drives, driven by industry supply constraints.
Net sales were $128.8 million for fiscal 2013 third quarter, which represented a 7.1% 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.
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