Moduslink Global Solutions, Inc has a market cap of $319.3 million; its shares were traded at around $7.21 with a P/E ratio of 24 and P/S ratio of 0.3. MLNK is in the portfolios of Arnold Schneider of Schneider Capital Management, Andreas Halvorsen of Viking Global Investors LP, Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:During the prior fiscal year ended July 31, 2009, the Company saw a weakening in the business environment and global economy. Management believes that the declines in revenue during the three and nine months ended April 30, 2010 compared with the three and nine months ended April 30, 2009 are in large part due to the weakening in the global economic environment. During fiscal 2009, the Company implemented restructuring plans to better position the Company for the long-term, given the ongoing challenging economic environment. The cost cutting actions that were taken during fiscal year 2009 as a result of the general economic decline included the elimination of approximately 500 jobs and the closing of certain facilities. For the three and nine months ended April 30, 2010, the Company recorded net restructuring charges of approximately $0.3 million and $0.4 million primarily due to changes in underlying assumptions of initial estimates of previously recorded restructuring plans and the reduction of 15 employees in Asia.
For the three months ended April 30, 2010, the Company reported net revenue of $213.7 million, operating income of $1.3 million, a loss from continuing operations before income taxes of $0.2 million, a net loss of $3.4 million and a gross margin percentage of 11.5%. For the nine months ended April 30, 2010, the Company
reported net revenue of $695.9 million, operating income of $18.8 million, income from continuing operations before income taxes of $15.0 million, net income of $7.7 million and a gross margin percentage of 13.2%. Net income for the nine months ended April 30, 2010 reflects an impairment charge of $0.3 million recorded on a certain investment included in the @Ventures investment portfolio. We currently conduct business in The Netherlands, Hungary, France, Ireland, Czech Republic, Singapore, Taiwan, China, Malaysia, Japan, Australia and Mexico in addition to our United States operations. At April 30, 2010, we had cash and cash equivalents, available-for-sale securities and short-term investments of $160.2 million, and working capital of $221.3 million.
During the three months ended April 30, 2010, net revenue in the Americas, Asia and Europe segments decreased by approximately $3.5 million, $15.3 million and $6.1 million, respectively. These decreases resulted primarily from declines in client order volumes partially offset by new business. The increase in the All other category related to inclusion of incremental revenue from the Companys TFL operating segment.
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