By: Dylan Sikes – AllPennyStocks.com News

Tuesday, March 7, 2017

Revenues may have dipped a bit in the latest quarter, but investors seem encouraged by improving gross margin and a much smaller net loss, pushing shares of ModusLink Global Solutions, Inc. (NASDAQ:MLNK) higher in Tuesday morning trading. ModusLink released the results of the second quarter of fiscal 2017 ended January 31, 2017, a couple minutes after 5:00 PM ET on Monday. Net revenue for the quarter was $117.6 million, down 2% from $120.0 million in the year prior quarter. A 16% jump in sales in Europe mostly offset declines in the Americas and Asia. Grow margin improved to 9.5% during the quarter, up from 3.0% in Q2 fiscal 2016. Operating expenses dropped $12.7 million, or 17.1%, from the same quarter last year. Net loss was shaved from $13.9 million to $2.9 million. Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) swung from a net loss of $10.4 million in the 2016 quarter to a gain of $3.4 million. The supply chain and logistics services company is amid a turnaround plan that was launched in Q4 of fiscal 2016. At that time, shares of MLNK, which were near $4 early in 2015, were on a trajectory for under a $1.00. The stock has rebounded with the realignment, including touching $2.08 in January. This morning, the stock is one of the best performing Nasdaq-listed stocks on a percentage basis, running ahead 21.3% to $1.71 from Monday’s closing price of $1.41.

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