Although All American Semiconductor Inc. reported record sales growth for the second quarter, the distributor's net income fell significantly from the prior year.
All American, Miami, posted sales of $79.9 million for the second quarter ended June 30, up 26.8% from net sales of $63 million a year earlier.
In addition to improving market conditions, the company attributed strong sales to its refocus on internal growth. However, the company's profitability is being affected by the investments it's making in personnel, new branches, and additional products and services, noted Bruce M. Goldberg, president and chief executive.
All American's income from operations and net income for the quarter decreased significantly, dropping 44.1% and 75.5%, respectively, from the previous year. Net income from operations was $1.6 million for the quarter, compared to $2.9 million the year before. Net income for the quarter was $247,000 compared to $1 million in 1998.
Goldberg pointed out that All American's profitability has increased sequentially form the first quarter.
First half sales climbed 18.9% to $150.5 million, from net sales of $126.5 million for the first half of 1998. Net income decreased to $441,000 in the first six months ended June 30, compared to $1.5 million for the same period last year.