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Winland Reports Losing Quarter |
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Written by Mike Buetow
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Wednesday, 13 August 2008 |
MANKATO, MN – Winland Electronics reported second-quarter net sales fell 15% from last year to $6.9 million amid lower demand from two of its three largest customers. For the period ended June 30, the net loss was $800,000, versus a net loss of $500,000 in 2007.
In a press release, CEO Tom de Petra said, "We do not believe this downward sales trend is driven by global, national or regional economic factors or sales trends. Instead, we believe our sales results primarily indicate market sector weaknesses specific to certain Winland customers and, to a lesser extent, normal business fluctuations, customer inventory rebalancing, product lifecycles and the long sales cycles inherent in our business.”
For the quarter, gross profit was $700,000, or 9.8% of net sales, compared to $600,000 (7.5% of net sales) in 2007. Total operating expense, as a percentage of net sales, increased to 18.8%, up two points. The operating loss was $617,000. The company completed the quarter with $5.8 million in working capital and a current ratio of 2.8 to 1. |
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