STEEL CONNECT Steel Connect, Inc. is a publicly-traded diversified holding company (Nasdaq Global Select Market symbol STCN) with two wholly-owned subsidiaries ModusLink Corporation and IWCO Direct that have market-leading positions in supply chain management and direct marketing.
ModusLink Corporationhttps://www.moduslink.com/ ModusLink® builds supply chain and eCommerce infrastructure that fulfills profit potential and propels superior speed to market for small, midsize, and enterprise-level companies all over the world. Global footprint spans North America, Europe, and the Asia Pacific region
& IWCO Direct. https://www.iwco.com/ One of the nation’s largest providers of data-driven direct marketing solutions, our Power your Marketing™ approach creates customers and drives response across all marketing channels. Our full range of services includes Strategy, Creative, and Execution along with one of the industry’s most sophisticated postal logistics strategies for direct mail. Through Mail-Gard, we offer business continuity and disaster recovery services that provide peace of mind in case of a business interruption, along with print and mail outsourcing services when you need an overflow provider for your critical communications.
Steel Connect, Inc. is a company that provides supply chain management services to software companies. During the dot-com bubble, the company, which was then known as CMGI, had a market capitalization of $41 billion and owned the naming rights to the home stadium of the New England Patriots.
Between 1995 and 1999, its stock was the best performing stock in the United States, returning 4,921%.
The company was formerly known as College Marketing Group, CMG Information Systems, CMGI Inc.,
In September 2008, thecompany changed its name to ModusLink Global Solutions, Inc.[15]
In December 2017, the company acquired IWCO Direct for $476 million in cash.[16]
In February 2018, the companychanged its nameto Steel Connect, Inc.[17]
Net revenue increased by approximately $174.6 million during the year ended July 31, 2019, as compared to the same period in the prior year. The change in net revenue was driven by the increase in revenue associated with the acquisition of IWCO in December 2017 and an increase in Supply Chain revenues associated with a client in the computing market, offset primarily by decreased revenues from a client in the consumer electronics industry, which did not have a significant negative affect on income from operations. Fluctuations in foreign currency exchange rates had an insignificant impact on net revenues for the year ended July 31, 2019, as compared to the prior year. During the year ended July 31, 2019, net revenue in the Supply Chain segment decreased by approximately $(13.0) million, primarily due to a client loss in the consumer electronics industry. This decrease was offset partially by higher revenues from programs in the computing and consumer electronics markets. During the year ended July 31, 2019, net revenue in the Direct Marketing increased by approximately $187.5 million primarily because IWCO's revenue in fiscal year 2019 represents revenue for a full fiscal year while its revenue in fiscal year 2018 represents revenue from its acquisition date of December 15, 2017.
Net revenue for the first six months of fiscal year 2020 increased $19.2 million to $440.6 million, compared to $421.4 million for the same period in the prior year. Gross margin increased 230 basis points to 20.3% for the first six months of fiscal year 2020, compared to 18.0% for the same period in the prior year. Operating income for the first six months of fiscal year 2020 increased $16.2 million to $21.9 million, compared to $5.7 million for the same period in the prior year. Net income for the first six months of fiscal year 2020 was $1.2 million, compared to a net loss of $19.1 million for the same period in the prior year. Adjusted EBITDA for the first six months of fiscal year 2020 increased $10.4 million to $45.4 million, compared to $35.0 million for the same period in the prior year.