Jaco's December Sales Drop
HAUPPAUGE, NY - Jaco Electronics, a distributor of components, reported second-quarter net sales of $52 million, down from $61.5 million a year ago. For the period ended Dec. 31, the company lost $1.5 million, vs. $437,000 last year.
The December results do not Jaco's former contract manufacturing subsidiary, which the company sold to Sagamore Holdings last September.
In a press statement, Jaco's chairman and chief executive Joel Girsky said, "During this difficult period we are focusing on managing the company's overhead and investing resources in areas we believe provide the best prospects for growth.
The company continues to shave expenses, announcing overhead reductions of $1.5 million annually, in addition to previously announced cuts of $2 million. The reductions will be fully implemented by March, the firm said. The company also intimated that further cuts may be coming as it tries to reduce spending by a total of $5 million per year.
Gross profit was flat at 12.7% on a sequential basis. SG&A declined both sequentially and year-over-year. Inventory levels increased sequentially, primarily due to $10.7 million of inventory for existing orders with a customer through June.
