Monday, TII Network Technologies, Inc. (TIII), a provider of network interface devices, network gateways and home networking, announced a surge in second quarter net income. Net sales recorded a sharp decline from the prior year, while cost of sales decreased significantly from the prior year.In the morning hours of trading shares were down more than 6% on the Nasdaq.
The Edgewood, New York-based company reported a net income of $369 thousand compared to $169 thousand in the prior year. The results included a tax provision of $309 thousand compared to $267 thousand last year. Earnings per share increased to $0.03 from $0.01 in the prior year.
Quarterly net sales were $9.876 million, down 28.1% from $13.731 million a year ago. Operating income increased to $673 thousand from $436 thousand last year. Gross profit margin improved to 36.2% from 28.6% on cost savings on consultation of Puerto Rico operations into Edgewood, New York facility.
For the first six-month period, net income surged to $519 thousand from $12 thousand in the prior year. The results included a tax provision of $399 thousand compared to $181 thousand in the year ago period. Earnings per share were $0.04 compared to $0.00 last year.
Net sales declined 15.5% to $18.7 million from $22.2 million a year ago. The company attributed the decrease to a lower level of sales of HomePlug products in the second quarter compared to last year.
TIII is currently trading at $1.22, down $0.08 or 6.15% on a volume of 28,968 shares.
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