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."
Elster added that the company is "confident that the investments we have made in our business, including our new Lehrhoff enterprise, are the right strategy to achieve sustainable growth and profitability," that the company's "business fundamentals remain healthy" and that its Lehrhoff integration is going well.