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Steel Connect Inc. (STCN0.00%) has submitted its 10-Q filing for the quarterly period ended October 31, 2024.
The filing reports a net revenue increase to $50.5 million from $41.3 million in the same quarter the previous year, primarily driven by higher sales volumes in the computing and consumer electronics markets.
Cost of revenue rose to $33.3 million from $29.9 million, attributed to increased materials procurement and labor costs.
The company reported a gross profit of $17.2 million, up from $11.5 million, with a gross profit margin increase to 34.1% from 27.8%.
Selling, general, and administrative expenses increased to $9.8 million from $8.8 million, due to higher corporate-level activity and professional fees.
Net income for the quarter was $2.4 million, down from $4.4 million in the previous year, impacted by $5.5 million in unrealized losses on investments.
Cash provided by operating activities was $12.0 million, while cash used in investing and financing activities was $13.4 million and $13.5 million, respectively.
Steel Connect had a working capital of $217.0 million as of October 31, 2024, with cash and cash equivalents totaling $233.9 million.
The filing notes a potential short-form merger with Steel Holdings, which could result in the acquisition of remaining shares of common stock at $11.45 per share.
The company continues to focus on its supply chain management services, with two clients accounting for a significant portion of its revenue.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Steel Connect Inc. quarterly 10-Q report dated December 12, 2024. To report an error, please email earnings@qz.com.