Enterprising Investor
2 years ago
Steel Partners and Steel Connect Announce Termination of Merger (11/15/22)
Steel Connect, Inc. (NASDAQ: STCN), a holding company (the “Company” or “Steel Connect”), announced today that Steel Partners Holdings L.P. (NYSE: SPLP), a diversified global holding company (“Parent” or “Steel Partners”) has terminated the merger agreement (the “Merger Agreement”) among Company, Parent and SP Merger Sub, Inc., a wholly owned subsidiary of Parent (“Merger Sub” and, together with Parent, the “Parent Parties”), dated June 12, 2022, pursuant to which Steel Partners would have acquired all of the common stock of Steel Connect not already owned by the Parent Parties (the “Merger”). The Merger Agreement was terminated by Parent following the failure to approve the Merger by a majority of the outstanding shares of common stock of the Company not owned, directly or indirectly, by the Parent Parties, any other officers or directors of the Company or any other person having any equity interest in, or any right to acquire any equity interest in, Merger Sub or any person of which Merger Sub is a direct or indirect subsidiary, as required pursuant to the terms of the Merger Agreement.
As a result of the termination, Steel Connect will not become a wholly owned subsidiary of Steel Partners and will remain a publicly traded company on NASDAQ under the symbol “STCN”.
Final results for the annual meeting of the stockholders of the Company will be made available in the Company’s filings with the U.S. Securities and Exchange Commission.
About Steel Partners Holdings L.P.
Steel Partners Holdings L.P. is a diversified global holding company that owns and operates businesses and has significant interests in leading companies in various industries, including diversified industrial products, energy, defense, supply chain management and logistics, banking and youth sports.
About Steel Connect, Inc.
Steel Connect, Inc. is a holding company with a wholly owned subsidiary, ModusLink Corporation, which serves the supply chain management markets.
https://www.businesswire.com/news/home/20221115006442/en/
Enterprising Investor
2 years ago
Steel Connect Announces Adjournment of Annual Meeting (10/28/22)
Steel Connect, Inc. (NASDAQ: STCN), a holding company (the “Company” or “Steel Connect”), announced today that it intends to convene and further adjourn, without conducting any other business, the Company’s 2021 Annual Meeting of Stockholders (the “Annual Meeting”).
The Annual Meeting will reconvene on November 15, 2022 at 11:00 a.m., Eastern time, and will be accessible only through the Internet at www.virtualshareholdermeeting.com/STCN2021. The record date for stockholders entitled to vote at the Annual Meeting remains August 19, 2022.
During the period of the adjournment, the Company will continue to solicit proxies from its stockholders with respect to the proposals set forth in the Proxy Statement, as it may be supplemented. Proxies previously submitted in respect of the Annual Meeting will be voted at the reconvened Annual Meeting unless properly revoked.
Steel Connect’s stockholders are reminded that their vote is important, no matter how many or how few shares of stock they own. The Company’s Board of Directors recommends that the Company’s stockholders vote “FOR” each of the proposals at the reconvened Annual Meeting by completing and returning their proxy card, or by submitting their proxy by telephone or over the Internet. All votes must be received by 11:59 p.m., Eastern time, on November 14, 2022 to be counted.
If you would like copies of the Definitive Proxy Statement filed by the Company in connection with the Annual Meeting, have questions about any of the proposals, or require assistance voting your shares, please contact the proxy solicitor assisting us on this matter:
Mackenzie Partners, Inc.
1407 Broadway, 27th Floor
New York, New York 10018
Banks and Brokers Call: (212) 929-5500
All Others Call Toll-Free: (800) 322-2885
Email: proxy@mackenziepartners.com
About Steel Connect, Inc.
Steel Connect, Inc. is a holding company with a wholly owned subsidiary, ModusLink Corporation, that serves the supply chain management markets.
Additional Information and Where to Find It
This communication may be deemed to be solicitation material in respect of the proposed acquisition of Steel Connect by Steel Partners. In connection with the proposed Merger, Steel Connect will file with the SEC and furnish to Steel Connect’s stockholders a proxy statement and other relevant documents. This communication does not constitute a solicitation of any vote or approval. BEFORE MAKING ANY VOTING DECISION, STEEL CONNECT’S STOCKHOLDERS ARE URGED TO READ THE PROXY STATEMENT IN ITS ENTIRETY AND ANY OTHER DOCUMENTS TO BE FILED WITH THE SEC IN CONNECTION WITH THE PROPOSED MERGER OR INCORPORATED BY REFERENCE IN THE PROXY STATEMENT BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED MERGER.
Investors will be able to obtain a free copy of the proxy statement and other relevant documents filed by Steel Connect with the SEC at the SEC’s website at www.sec.gov. In addition, investors may obtain a free copy of the proxy statement and other relevant documents from Steel Connect’s website at www.steelconnectinc.com or by directing a request to Steel Connect, Inc., Attn: Chief Financial Officer, 2000 Midway Lane, Smyrna, Tennessee 37167 or by calling (914) 461-1276.
Participants in the Solicitation
Steel Connect and its directors, executive officers and certain other members of management and employees of Steel Connect may be deemed to be “participants” in the solicitation of proxies from the stockholders of Steel Connect in connection with the proposed Merger. Information regarding the interests of the persons who may, under the rules of the SEC, be considered participants in the solicitation of the stockholders of Steel Connect in connection with the proposed Merger, which may be different than those of Steel Connect’s stockholders generally, are set forth in the proxy statement and the other relevant documents to be filed with the SEC. Stockholders can find information about Steel Connect and its directors and executive officers and their ownership of Steel Connect common stock in the proxy statement, and additional information about the ownership of Steel Connect common stock by Steel Connect’s directors and executive officers is included in their Forms 3, 4 and 5 filed with the SEC.
www.businesswire.com/news/home/20221028005088/en/
Enterprising Investor
2 years ago
Steel Connect Announces Adjournment of Annual Meeting (10/14/22)
SMYRNA, Tenn.--(BUSINESS WIRE)--Steel Connect, Inc. (NASDAQ: STCN), a holding company (the “Company” or “Steel Connect”), announced today that it intends to convene and further adjourn, without conducting any other business, the Company’s 2021 Annual Meeting of Stockholders (the “Annual Meeting”).
The Annual Meeting will reconvene on October 28, 2022 at 11:00 a.m., Eastern time, and will be accessible only through the Internet at www.virtualshareholdermeeting.com/STCN2021. The record date for stockholders entitled to vote at the Annual Meeting remains August 19, 2022.
During the period of the adjournment, the Company will continue to solicit proxies from its stockholders with respect to the proposals set forth in the Proxy Statement, as it may be supplemented. Proxies previously submitted in respect of the Annual Meeting will be voted at the reconvened Annual Meeting unless properly revoked.
Steel Connect’s stockholders are reminded that their vote is important, no matter how many or how few shares of stock they own. The Company’s Board of Directors recommends that the Company’s stockholders vote “FOR” each of the proposals at the reconvened Annual Meeting by completing and returning their proxy card, or by submitting their proxy by telephone or over the Internet. All votes must be received by 11:59 p.m., Eastern time, on October 27, 2022 to be counted.
If you would like copies of the Definitive Proxy Statement filed by the Company in connection with the Annual Meeting, have questions about any of the proposals, or require assistance voting your shares, please contact the proxy solicitor assisting us on this matter:
Mackenzie Partners, Inc.
1407 Broadway, 27 Floor
New York, New York 10018
Banks and Brokers Call: (212) 929-5500
All Others Call Toll-Free: (800) 322-2885
Email: proxy@mackenziepartners.com
About Steel Connect, Inc.
Steel Connect, Inc. is a holding company with a wholly owned subsidiary, ModusLink Corporation, that serves the supply chain management markets.
Additional Information and Where to Find It
This communication may be deemed to be solicitation material in respect of the proposed acquisition of Steel Connect by Steel Partners. In connection with the proposed Merger, Steel Connect will file with the SEC and furnish to Steel Connect’s stockholders a proxy statement and other relevant documents. This communication does not constitute a solicitation of any vote or approval. BEFORE MAKING ANY VOTING DECISION, STEEL CONNECT’S STOCKHOLDERS ARE URGED TO READ THE PROXY STATEMENT IN ITS ENTIRETY AND ANY OTHER DOCUMENTS TO BE FILED WITH THE SEC IN CONNECTION WITH THE PROPOSED MERGER OR INCORPORATED BY REFERENCE IN THE PROXY STATEMENT BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED MERGER.
Investors will be able to obtain a free copy of the proxy statement and other relevant documents filed by Steel Connect with the SEC at the SEC’s website at www.sec.gov. In addition, investors may obtain a free copy of the proxy statement and other relevant documents from Steel Connect’s website at www.steelconnectinc.com or by directing a request to Steel Connect, Inc., Attn: Chief Financial Officer, 2000 Midway Lane, Smyrna, Tennessee 37167 or by calling (914) 461-1276.
Participants in the Solicitation
Steel Connect and its directors, executive officers and certain other members of management and employees of Steel Connect may be deemed to be “participants” in the solicitation of proxies from the stockholders of Steel Connect in connection with the proposed Merger. Information regarding the interests of the persons who may, under the rules of the SEC, be considered participants in the solicitation of the stockholders of Steel Connect in connection with the proposed Merger, which may be different than those of Steel Connect’s stockholders generally, are set forth in the proxy statement and the other relevant documents to be filed with the SEC. Stockholders can find information about Steel Connect and its directors and executive officers and their ownership of Steel Connect common stock in the proxy statement, and additional information about the ownership of Steel Connect common stock by Steel Connect’s directors and executive officers is included in their Forms 3, 4 and 5 filed with the SEC.
https://www.businesswire.com/news/home/20221014005051/en/
Enterprising Investor
2 years ago
Reith v. Lichtenstein, et al.
As previously reported, on August 13, 2021, Steel Connect, Inc. (the “Company”), together with certain of its current and former directors of the board of directors of the Company, including Messrs. Warren Lichtenstein, Glen Kassan, Jack Howard, Jeffery Fenton and Jeffery Wald, and Steel Partners Holdings, L.P. and certain of its affiliates (“Steel Holdings” and, together with the individuals named above, “Defendants”) entered into a Memorandum of Understanding (“MOU”) in connection with settlement of the Reith v. Lichtenstein, et al., C.A. No. 2018-0277-MTZ (Del. Ch. 2018) class and derivative action. Pursuant to the MOU, the Defendants agreed to pay to the Company $2.75 million in cash, funded by directors and officers liability insurance, which payment was completed in April 2022 (with the Company’s insurer paying $1.65 million and the insurer of Steel Holdings, another party to the litigation, paying $1.1 million). Additionally, pursuant to the MOU, as well as separate letter agreements between the Company and such individuals, Messrs. Lichtenstein and Howard agreed to surrender to the Company an aggregate 3.2 million shares of the Company’s common stock, par value $0.01 per share (“Common Stock”), and a third defendant agreed to surrender 100,000 shares of Common Stock, which are all part of the December 2017 awards in consideration for services to the Company.
The settlement payments are currently in an account jointly controlled by counsel for plaintiff and the Company, where the funds are to remain until final court approval of the settlement. The settlement also provides that the Company shall pay the legal fees and costs of plaintiff’s counsel that might be awarded by the Court, subject to a cap of $2.05 million. A hearing was held on August 12, 2022 on the motion to approve the settlement and the plaintiff’s application for an award of attorney fees. One stockholder of the Company objected to the settlement and award of attorneys’ fees. At the conclusion of the August 12 hearing, the Court took the matter under advisement. Thereafter, the Court conferred with the parties’ counsel on August 18, 2022, raised questions about various matters with respect to the proposed settlement and award of attorneys’ fees, and directed the parties to make supplemental submissions, which the plaintiff, the Defendants and the objector subsequently filed.
On September 21, 2022, the parties submitted an amendment to the stipulation and agreement of compromise, settlement and release (the “Amendment”). The Court is scheduled to consider the Amendment at a hearing on September 23, 2022. Pursuant to the Amendment:
- The Defendants will pay the Company an additional $250,000, funded by directors’ and officers’ liability insurance.
- If the previously announced proposed merger between the Company and Steel Partners Holdings, L.P. (the “Merger”) is approved and consummated, and the settlement is approved by the Court, the aggregate settlement payment of $3.0 million will be distributed to the Company’s stockholders (other than Steel Holdings and the other Defendants) after the settlement payment is reduced by the aggregate amount of fees and expenses awarded to the plaintiff’s counsel, the plaintiff and the objector or objector’s counsel, and by the costs and expenses incurred by the Company to make the distribution (which costs and expenses shall not exceed $125,000).
- The distribution shall be made to each holder of eligible shares of Common Stock (as defined in the merger agreement governing the Merger), other than the Defendants; provided, however, that no distribution is required to be made to any holder whose proportionate share of the distribution would be less than $1.00.
- The distribution will be made no later than the latest of (a) the date of payment of the cash consideration in the Merger, (b) five business days after the Court has rendered a final unappealable decision on all applications of an award of fees and expenses or (c) five business days after the settlement payment has been released from escrow to the Company.
- Counsel for the plaintiff also agreed to reduce its request for attorneys’ fees to $1.4 million.
The stipulation of settlement and the Amendment are available on the Company’s website at https://ir.steelconnectinc.com/investor-information. Information on our website is not incorporated by reference in this Current Report on Form 8-K.
Enterprising Investor
2 years ago
Independent Proxy Advisory Firms ISS and Glass Lewis Recommend Steel Connect Stockholders Vote “FOR” All Proposals Regarding Merger with Steel Partners (9/19/22)
Steel Connect Reminds Stockholders to Vote “FOR” All Merger-Related Proposals
Annual Meeting of Stockholders to be held on September 30, 2022
SMYRNA, Tenn.--(BUSINESS WIRE)--Steel Connect, Inc. (NASDAQ: STCN) (the “Company” or “Steel Connect”) announced today that leading independent proxy advisory firms Institutional Shareholder Services, Inc. (“ISS”) and Glass Lewis & Co. (“Glass Lewis”) recommended that the Company’s stockholders vote “FOR” all proposals to be considered and voted on at the Company’s Annual Meeting of Stockholders (the “Annual Meeting”) in connection with the previously announced merger with Steel Partners Holdings L.P. (NYSE: SPLP) (“Steel Partners”). The Annual Meeting is scheduled to be held on September 30, 2022 at 12:00 p.m. ET.
In their reports dated September 16, 2022, ISS and Glass Lewis noted1:
“Investors reacted positively to the initial proposal from SPLP on March 28, driving the STCN share price up by 11.2 percent, compared to a 3.3 percent increase in the S&P 600 Data Processors & Outsourcing Services Index on the same day.” (ISS)
“Although shareholders may have some concerns over process and value, the offer represents a 16.4 percent premium to the unaffected price, the cash consideration provides liquidity and certainty of value, the CVR provides some potential for additional value, and there appears to be downside risk of non-approval.” (ISS)2
“Notwithstanding concerns regarding the process and value, the board negotiated for a go-shop period and a commitment from the controlling shareholder to support a superior proposal if one was made; no actionable alternative proposals were delivered during the go-shop period.” (ISS)
“In our opinion, the disclosed process was fairly thorough for purposes of securing the best terms possible for unaffiliated shareholders, and the Company took reasonable steps to evaluate potential strategic alternatives prior to entering into the Merger Agreement. Moreover, taking into account the extensive outreach conducted by the financial advisors, we see no reason to doubt that the proposed merger likely represents the most favorable offer available to SC shareholders at this time.” (Glass Lewis)
“[T]he all-cash purchase price of $1.35 per share represents what we consider to be a favorable premium of 91.5% over the Company's unaffected trading price on November 19, 2020… we believe there is a strong procedural and financial case in favor of the proposed transaction.” (Glass Lewis)
Steel Connect’s stockholders are reminded that their vote is important, no matter how many or how few shares of stock they own. The Company’s Board of Directors recommends that the Company’s stockholders vote “FOR” each of the proposals at the Company’s September 30, 2022 Annual Meeting by completing and returning their proxy card, or by submitting their proxy by telephone or over the Internet.
If you would like copies of the Definitive Proxy Statement filed by the Company in connection with the Annual Meeting, have questions about any of the proposals, or require assistance voting your shares, please contact the proxy solicitor assisting us on this matter:
Mackenzie Partners, Inc.
1407 Broadway, 27 Floor
New York, New York 10018
Banks and Brokers Call: (212) 929-5500
All Others Call Toll-Free: (800) 322-2885
Email: proxy@mackenziepartners.com
About Steel Connect, Inc.
Steel Connect, Inc. is a holding company with a wholly owned subsidiary, ModusLink Corporation, serves the supply chain management markets.
FORWARD-LOOKING STATEMENTS
This communication contains certain forward-looking statements that involve a number of risks and uncertainties. This communication contains forward-looking statements related to Steel Connect, Steel Partners and the proposed acquisition of Steel Connect by Steel Partners and their respective affiliates. Actual results and events in future periods may differ materially from those expressed or implied by these forward-looking statements because of a number of risks, uncertainties and other factors. All statements other than statements of historical fact, including statements containing the words “aim,” “anticipate,” “are confident,” “estimate,” “expect,” “will be,” “will continue,” “will likely result,” “project,” “intend,” “plan,” “believe” and other words and terms of similar meaning, or the negative of these terms, are statements that could be deemed forward-looking statements. Risks, uncertainties and other factors include, but are not limited to: (i) the occurrence of any event, change or other circumstances that could give rise to the termination of the merger agreement; (ii) the inability to complete the proposed merger due to the failure to obtain stockholder approval for the proposed merger or the failure to satisfy other conditions to completion of the proposed merger; (iii) the failure of the proposed merger to close for any other reason; (iv) risks related to disruption of management’s attention from Steel Partners’ and Steel Connect’s ongoing business operations due to the transaction; (v) the outcome of any legal proceedings, regulatory proceedings or enforcement matters that may be instituted against Steel Partners and Steel Connect and others relating to the merger agreement; (vi) the risk that the pendency of the proposed merger disrupts current plans and operations and the potential difficulties in employee retention as a result of the pendency of the proposed merger; (vii) the effect of the announcement of the proposed merger on Steel Partners’ relationships with its customers, operating results and business generally; and (viii) the amount of the costs, fees, expenses and charges related to the proposed merger. Consider these factors carefully in evaluating the forward-looking statements.
The forward-looking statements included in this press release are made only as of the date of this release, and except as otherwise required by federal securities law, neither Steel Partners nor Steel Connect assume any obligation nor do they intend to publicly update or revise any forward-looking statements to reflect subsequent events or circumstances.
Additional Information and Where to Find It
This communication may be deemed to be solicitation material in respect of the proposed acquisition of Steel Connect by Steel Partners. In connection with the proposed merger, Steel Connect will file with the SEC and furnish to Steel Connect’s stockholders a proxy statement and other relevant documents. This communication does not constitute a solicitation of any vote or approval. BEFORE MAKING ANY VOTING DECISION, STEEL CONNECT’S STOCKHOLDERS ARE URGED TO READ THE PROXY STATEMENT IN ITS ENTIRETY AND ANY OTHER DOCUMENTS TO BE FILED WITH THE SEC IN CONNECTION WITH THE PROPOSED MERGER OR INCORPORATED BY REFERENCE IN THE PROXY STATEMENT BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED MERGER.
Investors will be able to obtain a free copy of the proxy statement and other relevant documents filed by Steel Connect with the SEC at the SEC’s website at www.sec.gov. In addition, investors may obtain a free copy of the proxy statement and other relevant documents from Steel Connect’s website at www.steelconnectinc.com or by directing a request to Steel Connect, Inc., Attn: Chief Financial Officer, 2000 Midway Lane, Smyrna, Tennessee 37167 or by calling (914) 461-1276.
Participants in Solicitation
Steel Connect and its directors, executive officers and certain other members of management and employees of Steel Connect may be deemed to be “participants” in the solicitation of proxies from the stockholders of Steel Connect in connection with the proposed merger. Information regarding the interests of the persons who may, under the rules of the SEC, be considered participants in the solicitation of the stockholders of Steel Connect in connection with the proposed merger, which may be different than those of Steel Connect’s stockholders generally, are set forth in the proxy statement and the other relevant documents to be filed with the SEC. Stockholders can find information about Steel Connect and its directors and executive officers and their ownership of Steel Connect common stock in the proxy statement, and additional information about the ownership of Steel Connect common stock by Steel Connect’s directors and executive officers is included in their Forms 3, 4 and 5 filed with the SEC.
___________________________
1 Permission to use quotations neither sought nor obtained.
2 ISS noted a July 14, 2022 open letter from Hillandale Advisors.
https://www.businesswire.com/news/home/20220919005749/en/Independent-Proxy-Advisory-Firms-ISS-and-Glass-Lewis-Recommend-Steel-Connect-Stockholders-Vote-%E2%80%9CFOR%E2%80%9D-All-Proposals-Regarding-Merger-with-Steel-Partners
Sandera
4 years ago
DD on STCN Steel Connect, Inc.
https://steelconnectinc.com/
Seriously Underval IMO
Ecommerce & Direct Supply Chain Management with a global footprint spanning North America, Europe and the Asia Pacific
Market Cap 34.88M
Shs Outstand 61.82M
Sales 822.40M
As of April 30, 2020 and July 31, 2019, the Company had cash and cash equivalents of $90.2 million and $32.5 million, respectively.
https://www.otcmarkets.com/stock/STCN/profile
https://finviz.com/quote.ashx?t=STCN&ty=c&ta=0&p=m
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 Corporation https://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.
DECEMBER 18, 2017 / 3:20 PM / 3 YEARS AGO
Acquisition Of Iwco Direct For $476 Mln In Cash
https://www.reuters.com/article/brief-moduslink-announces-acquisition-of/brief-moduslink-announces-acquisition-of-iwco-direct-for-476-mln-in-cash-idUSASB0BY9S
3+ name changes with Huge History
https://en.wikipedia.org/wiki/Steel_Connect
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, the company 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 company changed its name to Steel Connect, Inc.[17]
https://finance.yahoo.com/news/steel-connect-reports-third-quarter-202100502.html
STCN Nine-Month Financial Summary
Net revenue for the first nine months of the fiscal year increased $2.6 million to $618.0 million, compared to $615.4 million for the same period in the prior year.
Gross margin increased 160 basis points to 19.9% for the first nine months of the fiscal year, compared to 18.3% for the same period in the prior year.
Operating income for the first nine months of the fiscal year increased $15.2 million to $23.0 million, compared to $7.8 million for the same period in the prior year.
Net loss for the first nine months of the fiscal year decreased $23.8 million to $4.9 million, compared to a net loss of $28.7 million for the same period in the prior year.
Adjusted EBITDA for the first nine months of the fiscal year increased $11.4 million to $62.1 million, compared to $50.7 million for the same period in the prior year.
STCN
Year end fin reporting 2019>>> seen growth
https://www.otcmarkets.com/filing/html?id=13687346&guid=jn96UecW9v6xqbh
vs 2018/2017 https://www.otcmarkets.com/filing/html?id=13091487&guid=jn96UecW9v6xqbh
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.
Latest reporting 2020:
Six-Month Financial Highlights: https://finance.yahoo.com/news/steel-connect-reports-second-quarter-121500553.html
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.
STCN
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