ModusLink Global Solutions, Inc. reported unaudited consolidated earnings for the fourth quarter and full year ended July 31, 2012 and for the first quarter ended October 31, 2012. For the fourth quarter, the company's net revenue was $177.1 million, a decrease of 10.9% compared to net revenue of $198.7 million reported in the fourth quarter of fiscal 2011. The decline was primarily due to lower unit volumes including those from a significant client with programs related to notebook computers as well as lower volumes from certain discontinued client programs. Operating loss was $23.4 million, compared to operating loss of $4.4 million in the fourth quarter of fiscal 2011. Loss from continuing operations before taxes was $18.17 million against $7.31 million a year ago. Loss from continuing operations was $20.16 million or $0.46 per basic and diluted share against $4.36 million or $0.10 per basic and diluted share a year ago. Net loss was $20.2 million or $0.46 per basic and diluted share compared to net loss of $4.5 million, or $0.10 per basic and diluted share, for the same period in fiscal 2011. Excluding net charges related to depreciation, amortization of intangible assets, share-based compensation, restructuring and impairment of goodwill, the company reported non-GAAP operating loss of $17.5 million compared to non-GAAP operating income of $1.5 million for the same period in fiscal 2011.

For the full year, the company's net revenue was $739.89 million against $873.75 million a year ago. Operating loss was $45.89 million against $37.67 million a year ago. Loss from continuing operations before taxes was $35.56 million against $33.32 million a year ago. Loss from continuing operations was $38.60 million or $0.88 per basic and diluted share against $34.14 million or $0.79 per basic and diluted share a year ago. Net loss was $38.11 million or $0.87 per basic and diluted share against $34.47 million or $0.80 per basic and diluted share a year ago. Non-GAAP operating loss was $18.05 million against non-GAAP operating income of $16.07 million a year ago.

For the first quarter, the company reported net revenue of $200.7 million, a decrease of 2.6% compared to net revenue of $205.9 million reported in the first quarter of fiscal 2012. The decline was primarily due to lower unit volumes from significant client programs related to notebook computers and microprocessors, which impacted financial results in each of the company's geographical segments. Operating loss was $8.1 million compared to operating income of $2.2 million in the first quarter of fiscal 2012. The operating loss was due to lower gross margin and higher selling general and administrative costs, and restructuring expenses, compared to the same period in fiscal 2012. Loss from continuing operations before taxes was $9.76 million or $0.24 per basic and diluted share against income from continuing operations before taxes of $3.02 million or $0.03 per basic and diluted share a year ago. Loss from continuing operations was $10.66 million against income from continuing operations of $1.15 million a year ago. Net loss was $10.7 million or $0.24 per basic and diluted share compared to net income of $1.1 million, or $0.03 per basic and diluted share, for the same period in fiscal 2012. Cash flow from operating activities was $8.8 million and additions to property and equipment were $2.1 million, resulting in free cash flow from operations of $6.6 million, an improvement compared to $3.5 million in the same period in 2012. Non-GAAP operating loss was $2.2 million, compared to income of $7.9 million in the first quarter of fiscal 2012.

The company expects revenue for the second quarter of fiscal 2013 to be in line with, or modestly higher than, revenue of $178 million reported in the second quarter of fiscal 2012. In the second quarter of fiscal 2013, the company expects to report a lower cash position compared to the first quarter of fiscal 2013 due to expenses primarily related to the restatement process and its restructuring actions, and begin to increase its cash position in the second half of the fiscal year.