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Str Holdings Inc Reports Operating Results (10-Q)

August 12, 2010 | About:
10qk

10qk

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Str Holdings Inc (STRI) filed Quarterly Report for the period ended 2010-06-30.

Str Holdings Inc has a market cap of $992 million; its shares were traded at around $23.99 with and P/S ratio of 3.7. STRI is in the portfolios of Columbia Wanger of Columbia Wanger Asset Management.

Highlight of Business Operations:

Cost of sales increased $18.1 million, or 46%, to $57.3 million for the three months ended June 30, 2010 from $39.2 million for the corresponding 2009 period. For the six months ended June 30, 2010, cost of sales increased $29.8 million, or 39%, to $107.0 million from $77.2 million for the corresponding 2009 period. The increase in both periods was primarily driven by increased raw material and direct labor costs as a result of the increase in our Solar net sales as discussed above.

Cost of sales in our Solar segment increased $18.0 million, or 89%, to $38.3 million for the three months ended June 30, 2010 from $20.3 million in the same period in 2009. The increase in our Solar segments cost of sales was mainly due to increased variable costs associated with the increase in sales volume, raw material inflation of $1.4 million and higher labor and benefits. The increase was offset by a favorable euro foreign exchange impact as compared to the same period in 2009 and $0.8 million of reduced inventory write-offs.

Cost of sales in our Solar segment increased $28.7 million, or 70%, to $69.8 million for the six months ended June 30, 2010 from $41.1 million in the same period in 2009. The increase in our Solar segments cost of sales was mainly due to increased variable costs associated with the increase in sales volume, raw material inflation of $2.6 million and higher labor and benefits. The increase was offset by a favorable euro foreign exchange impact as compared to the same period in 2009 and $0.8 million of reduced inventory write-offs.

Cost of sales in our Quality Assurance segment of $19.0 million for the three months ended June 30, 2010 was essentially flat compared to $18.9 million for the same period in 2009. Cost of sales in our Quality Assurance segment increased $1.1 million, or 3%, to $37.2 million for the six months ended June 30, 2010 from $36.1 million for the same period in 2009. The change in cost of sales for both periods was essentially consistent with the net sales trend for the same periods.

Gross profit increased $19.0 million, or 93%, to $39.4 million for the three months ended June 30, 2010 from $20.4 million for the same period in 2009 primarily due to the sales increase in our Solar segment. As a percentage of net sales, gross profit increased 650 basis points from 34.2% for the three months ended June 30, 2009 to 40.7% for the same period in 2010.

Gross profit increased $28.9 million, or 72%, to $69.5 million for the six months ended June 30, 2010 from $40.5 million for the same period in 2009 primarily due to the sales increase in our Solar segment. As a percentage of net sales, gross profit increased 500 basis points from 34.4% for the six months ended June 30, 2009 to 39.4% for the same period in 2010.

Read the The complete Report

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10qk
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