ModusLink Global Solutions, Inc. Announces Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended January 31, 2012; Provides Revenue Guidance for the Third Quarter of 2012
March 07, 2012 at 09:03 pm
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ModusLink Global Solutions, Inc. announced unaudited consolidated earnings results for the second quarter and six months ended January 31, 2012. For the quarter, the company reported net revenue of $178,588,000 compared to $234,150,000 a year ago. Operating loss was $13,469,000 compared to $26,324,000 a year ago. Loss from continuing operations before taxes was $12,903,000 compared to $27,098,000 a year ago. Loss from continuing operations was $13,283,000 or $0.31 per basic and diluted share compared to $28,230,000 or $0.65 per basic and diluted share a year ago. Net loss was $12,613,000 or $0.29 per basic and diluted share compared to $28,334,000 or $0.65 per basic and diluted share a year ago. Non-GAAP operating loss was $4,005,000 compared to non-GAAP operating income of $8,123,000 a year ago. The decline in revenue was primarily due to the adverse economic environment in Europe, a client in the Americas that discontinued its product and certain clients in the computing market experiencing negative impacts related to supply constraints. Net cash used for operating activities was $10.0 million, compared to cash flow from operating activities of $11.2 million in the same period in 2011.
For the six months, the company reported net revenue of $384,739,000 compared to $470,529,000 a year ago. Operating loss was $11,260,000 compared to $28,989,000 a year ago. Loss from continuing operations before taxes was $9,863,000 compared to $32,414,000 a year ago. Loss from continuing operations was $12,114,000 or $0.28 per basic and diluted share compared to $34,855,000 or $0.81 per basic and diluted share a year ago. Net loss was $11,444,000 or $0.26 per basic and diluted share compared to $35,004,000 or $0.81 per basic and diluted share a year ago. Non-GAAP operating income was $3,907,000 compared to $12,826,000 a year ago.
For the third quarter of fiscal 2012, the company expects revenue to be similar to revenue reported in the second quarter of fiscal 2012, despite the third quarter historically being seasonally lower on a sequential basis. The company's expectations for the third quarter assume the effects of supply constraints recently experienced by certain computing clients will begin to abate and revenue from new programs will improve on a sequential basis as a result of the company's sales and marketing activities.
Steel Connect, Inc. is a holding company which operates through its subsidiary, ModusLink Corporation. The Company is an end-to-end global supply chain solutions and e-commerce provider serving clients in markets such as consumer electronics, communications, computing, medical devices, software and retail. The Company designs and executes various elements in its clients global supply chains. The Company delivers its solutions through a combination of industry expertise, service solutions, integrated operations, business processes, a wide global footprint and technology. It produces and licenses an entitlement management solution powered by its enterprise-class Poetic software, which offers a complete solution for activation, provisioning, entitlement subscription, and data collection from physical goods (connected products) and digital products. It has an integrated network of facilities located in various countries, including numerous sites throughout North America, Europe and Asia.
ModusLink Global Solutions, Inc. Announces Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended January 31, 2012; Provides Revenue Guidance for the Third Quarter of 2012