Distributor Bell Micro has swung back into the red on the eve of the closure of its acquisition by larger rival Avnet.
Despite banking a healthy $12.9m (£8.9m) profit in its previous quarter, the storage specialist posted a $5m net loss for the three months to 31 March.
On a non-GAAP basis, net profit stood at $5.3m compared with $9.1m in the previous quarter and $3.8m a year ago.
In its quarterly report, Bell revealed it racked up $1.7m in legal and investment banking fees during the quarter in connection with the Avnet deal, which it expects to close in the third quarter. The $252m deal was originally announced on 29 March and has since come under some scrutiny from shareholders.
Bell’s Q1 net sales decreased four per cent sequentially to $800.6m, although were up 12 per cent on an annual comparison.
By segment, its components and peripherals category, which generated 51 per cent of sales, continued to perform well with revenues up six per cent sequentially and 33 per cent year on year.
In contrast, solutions category sales fell 13 per cent sequentially, which Bell blamed partly on lower software licence sales in Europe.
Total European sales hit $337.8m, down four per cent sequentially but up 12 per cent year on year. Without currency effects, regional sales rose four per cent year on year and two per cent sequentially.
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