BOCA RATON, Fla., Feb. 9, 2007 (PRIME NEWSWIRE) -- StockMarketNewsAlert.com issues New Trade Alert for Jaco Electronics, Inc. (Nasdaq:JACO). According to Marco D'Alonzo at First Equity Group Inc., recent news flow from the company has been very positive: "The company reported its fourth consecutive profitable quarter."
Commenting on the results, Jaco's Chairman and Chief Executive Officer Joel Girsky, stated, "The fiscal 2007 second quarter marked Jaco's fourth consecutive profitable quarter and was highlighted by significant year-over-year increases in net sales and gross profit.
"Jaco is achieving profitability from our strategy to focus on marketing product lines from core vendors while positioning the Company as a value-added services leader in logistics and flat panel display (FPD) design and integration. In the fiscal 2007 second quarter, net sales from each of these categories rose on a year-over-year basis. Jaco's gross profit margin remains a function of our sales mix and can vary based on quarterly fluctuations related to sales to major contract manufacturers through our logistics and inventory management programs.
"Cost disciplines remain an important element in our overall business strategy and Jaco's fiscal 2007 second quarter SG&A expenses were 11.6% of net sales, down from 14.2% in the fiscal 2006 second quarter. As a result of strong top-line growth and overhead efficiency improvements, we achieved a significant improvement in operating income, turning a $181,000 operating loss in the second quarter of fiscal '06 into an $857,000 operating profit in the corresponding fiscal '07 quarter. We believe we have the right level of infrastructure to support our plans for growth and will continue to adjust sales staffing as demand and the business environment dictate.
"We recently entered into a new credit facility that provides additional working capital capacity and the financial flexibility to continue pursuing our strategies for prudent expansion. In addition, the new facility provides lower interest rates than our previous credit facility that, based on current borrowing levels, are expected to reduce interest expense in the current and future periods. We will also continue to review potential opportunities that would further enhance our FPD capabilities."
About Jaco Electronics
Jaco is a leading distributor of electronic components to industrial OEMs and contract manufacturers. Jaco distributes products such as semiconductors, capacitors, resistors, electromechanical devices, flat panel displays (FPD) and power supplies, which are used in the manufacture and assembly of electronic products, including: telecommunications equipment, computers and office equipment, medical devices and instrumentation, industrial equipment and controls, military/aerospace systems and automotive and consumer electronics.
Jaco has two distribution centers and 16 strategically located sales offices throughout the United States, and one in Beijing, China. The Company operates an in-house FPD integration center housing its engineering and manufacturing staff and operations. The integration center enhances Jaco's ability to provide customers with unique, value-added display solutions and a "one-stop" source for their FPD supply and integration requirements. In addition to customized FPD solutions, Jaco provides a variety of value-added services including automated inventory management services and assembling stock items for customers into pre-packaged kits.
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