WALTHAM, Mass.--(BUSINESS WIRE)--ModusLink Global Solutions™, Inc. (NASDAQ: MLNK), on June 9, 2016, reported financial results for its third quarter of fiscal year 2016 ended April 30, 2016. Results for the three and nine month periods ended April 30, 2016 are summarized in the following paragraphs. For a full discussion of the results, please see the Company's report on Form 10-Q, which can be accessed through www.moduslink.com.

Third Quarter Financial Summary

• Net revenue of $96.5 million for the three months ended April 30, 2016, as compared to $106.2 million in the same period in the prior year.
• Gross margin of 2.3% for the three months ended April 30, 2016, as compared to 8.5% in the same period in the prior year.
• SG&A expenses of $14.5 million for the three months ended April 30, 2016, compared to $14.4 million in the same period in the prior year.
• Operating loss of $12.5 million for the three months ended April 30, 2016, compared to operating loss of $7.6 million in the same period in the prior year.
• Negative Adjusted EBITDA of $10.5 million for the three months ended April 30, 2016, compared to negative Adjusted EBITDA of $0.9 million in the same period in the prior year.
• Net loss of $12.8 million, or $0.25 per basic and diluted share, for the three months ended April 30, 2016, compared with net loss of $12.1 million, or $0.23 per basic and diluted share, in the same period in the prior year.

The decrease in net revenue, gross margin, operating income and adjusted EBITDA for the three months ended April 30, 2016, as compared to the same period in the prior year, was primarily driven by decreased revenues from a consumer electronics client and an aftermarket services program related to the repair and refurbishment of mobile devices, partially offset by increases in revenue from other consumer electronics clients. The lower revenue from the consumer electronics client primarily affected results in the Americas and Asia. Additionally, the lower revenue from the aftermarket services program affected results in the Americas.

For the three months ended April 30, 2016, negative Adjusted EBITDA was $10.5 million compared to negative Adjusted EBITDA of $0.9 million for the same period in the prior year. EBITDA represents earnings before interest, income tax expense, depreciation and amortization, and adjusted EBITDA represents EBITDA excluding certain items. Please refer to the non-GAAP information and table reconciling the Company’s adjusted EBITDA to its GAAP net income (loss) below.

Year-to-Date Financial Summary

• Net revenue of $357.5 million for the nine months ended April 30, 2016, as compared to $442.0 million in the same period in the prior year.
• Gross margin of 5.1% for the nine months ended April 30, 2016, as compared to 10.1% in the same period in the prior year.
• SG&A expenses of $43.5 million for the nine months ended April 30, 2016, compared to $44.6 million in the same period in the prior year.
• Operating loss of $27.0 million for the nine months ended April 30, 2016, compared to operating loss of $5.8 million in the same period in the prior year.
• Negative Adjusted EBITDA of $16.9 million for the nine months ended April 30, 2016, compared to adjusted EBITDA of $11.3 million in the same period in the prior year.
• Net loss of $41.6 million, or $0.80 per basic and diluted share, for the nine months ended April 30, 2016, compared with net loss of $13.4 million, or $0.26 per basic and diluted share, in the same period in the prior year.

The decrease in net revenue, gross margin, operating income and adjusted EBITDA for the nine months ended April 30, 2016, as compared to the same period in the prior year, were driven by the lower volumes from a major computing market client, a major consumer electronics client and an aftermarket services program related to the repair and refurbishment of mobile devices, partially offset by an increase in revenue from other clients in the consumer electronics industries. The lower revenues from the major consumer electronics client affected results in the Americas, Europe and Asia. The lower revenue from the major consumer electronics client primarily affected results in the Americas and Asia. The lower revenue from the aftermarket services program affected results in the Americas.

For the nine months ended April 30, 2016, negative Adjusted EBITDA was $16.9 million compared to Adjusted EBITDA of $11.3 million for the same period in the prior year. EBITDA represents earnings before interest, income tax expense, depreciation and amortization, and adjusted EBITDA represents EBITDA excluding certain items. Please refer to the non-GAAP information and table reconciling the Company’s adjusted EBITDA to its GAAP net income (loss) below.

Warren G. Lichtenstein, Chairman of the Board and interim Chief Executive Officer of ModusLink Global Solutions, Inc. stated “We are evaluating various actions to materially enhance all of the Company’s operations through increased sales and operating efficiencies in order to quickly return the Company to profitability.” “We are pleased that the Company continues to receive service related awards from both existing and new client accounts on a global basis which reflects our commitment to our customers.”

About ModusLink Global Solutions, Inc.

ModusLink Global Solutions, Inc. (NASDAQ: MLNK), through its wholly-owned subsidiaries, ModusLink Corporation and ModusLink PTS, Inc. (together “ModusLink"), executes comprehensive supply chain and logistics services that are designed to improve clients’ revenue, cost, sustainability and customer experience objectives. ModusLink is a trusted and integrated provider to the world’s leading companies in consumer electronics, communications, computing, medical devices, software and retail. ModusLink’s operations are supported by more than 25 sites across North America, Europe, and the Asia/Pacific region. For details on ModusLink’s flexible and scalable solutions visit www.moduslink.com andwww.valueunchained.com, the blog for supply chain professionals.