Zones Income Plummets
Zones Inc. posted net income of $1.2 million for the third quarter, a sharp decrease from $2.6 million during the same quarter in the prior year.
The information technology direct marketer reported net sales of $197.7 million for the quarter ended Sept. 30, a 21.3% increase over last year.
The Auburn, WA company posted outbound sales to businesses and public sector customers of $196.9 million for the quarter, compared with $161.7 million in 2007.
Management attributed this to projects from two major customers’ third quarter projects during the period.
Zones reported gross margin of 10.2% for the quarter, a decrease from 11.2% last year.
Management attributed this in part to low margin sales to the major customers during the quarter and general economic conditions.
In addition, the firm said its selling, general and administrative expenses, as a percent of net sales, were 7.7% in the quarter, a 7.4% increase over the prior year.
The company attributed this primarily to costs associated with going private and increases in salaries, wages and benefits.
