SinoHub Reports Q2 Sales Down 7%, Income Down 70%
SHENZHEN – Electronics manufacturer SinoHub reported second-quarter net sales of $40.9 million, down 6.8% year-over-year.
Net income was $1 million, down 70.6% compared to the same period last year.
Sales in the ICM business segment were $9.2 million, down 30.8% year-over-year.
Net sales from the electronic component sales and supply chain management services segment for the quarter were $31.7 million, up 3.6% compared to the second quarter of 2010.
“Our results were impacted this quarter by a significant decline in sales from our ICM segment, as our largest customer faced inventory issues relating to phones purchased from another supplier. As a result, this customer was unable to purchase any phones from SinoHub during the second quarter,” said CEO Harry Cochran.
“We have decided to shift the electronic component procurement portion of our ECSS segment to a brokerage model from our current model where we take ownership of components.”
Net sales for the six months ended June 30 were $78.9 million, down 4.4% compared to the year-earlier period.
Gross profit for the six-month period was $12.1 million, down 17.7% year-over-year.
