Value Microcaps Motherboard

[michael t]

hewb2 re: SECX

Definitely an impressive quarter. I noticed in the press release that they attributed some of the gross margin improvement to foreign currency, so I checked the 10q to see if they gave more clarification.

Under Management Discussion I found the following,

Gross Profit Margins. Gross profit for the three months ended December 31, 2010 was $9.1 million, an increase of $1.9 million or 27.1% compared with $7.2 million for the same period in 2009. Gross margin improved, as a percentage of sales, to 5.8% for the quarter ended December 31, 2010 from 5.1% for the same period in 2009. Approximately two thirds of the margin improvement year over year was due to currency exchange with the balance attributable to SED’s margin improvement programs including operations efficiencies.