Pioneer-Standard Electronics Inc. reported a fiscal third quarter net profit of $2.2 million, or 8 cents per share, compared with a net profit of $13 million, or 40 cents per diluted share, in the year-earlier period.
The Cleveland distributor said sales declined 19% to $633.7 million, compared with $781.3 million from the same quarter a year ago. Combined revenue rose 8% sequentially, largely due to the 25% up-tick from the Computer Systems Division that contributed 60% of revenue. The Industrial Electronics Division contributed 40% of sales.
During the first nine months of fiscal 2002, Pioneer reduced its inventory by $97 million and debt by $197 million, resulting in a 50% reduction in interest expense for the third quarter compared with the third quarter last year, it said.
For the nine months ended Dec. 31, revenue was $1.8 billion, a 16% decrease from the $2.2 billion reported for the same period last year. The net loss of $800,000 for the first nine months of the year compares with net income of $34.5 million reported year a year earlier. The loss per share of 3 cents compares with diluted earnings per share of $1.06 reported for the same period last year.
Pioneer-Standard anticipates sales in the March quarter to drop 25% to 30% compared with last year. Based on the current market environment and the expense reductions achieved, Pioneer-Standard said its goal is to break even or be slightly profitable in the March quarter on significantly lower year-over-year sales.