Agilysys Posts $3.4 Million Second-Quarter Loss

Shares of Agilysys, formerly known as Pioneer-Standard Electronics, were trading at $10.40 Thursday morning, up 20 cents, or 2 percent.

Agilysys reported $292.7 million in sales in the second quarter. The results compare with net income of $642,000, or 2 cents per share, on $260.7 million in revenue for the year-ago quarter.

The results include more than $3 million in charges, or a total of 12 cents per share, related to the sale of its electronic components distribution business to Arrow Electronics and the retirement of debt, restructuring and a gain on the sale of an investment. Excluding the charges, Thomson Financial/First Call had projected a 2-cent-per-share loss.

"Typically, our second-quarter sales are down from the first quarter, due to the seasonal nature of the business," said Arthur Rhein, chairman, president and CEO, in a statement. "With that in mind, we are very pleased with the strong sales growth of nearly 5 percent over last quarter and 12 percent over last year. This quarter's performance, coupled with the recent name change and the Kyrus acquisition, demonstrates the aggressive strides we are taking in repositioning the company as we pursue our plans to grow in the enterprise computer solutions market."

Agilysys expects sales to increase between 15 percent and 20 percent for the fiscal year to about $1.4 billion following the $28.7 million cash acquisition of Kyrus, a Greenville, S.C.-based distributor of IBM retail solutions.

Earnings should be between 16 cents and 20 cents per share, compared with previous guidance of 11 cents to 16 cents prior to the Kyrus acquisition.