Welcome!

News Feed Item

SED International Holdings Announces New Funding Facility; Provides Operational Update

SED International Holdings, Inc. (OTC: SEDN), a multinational supply chain management provider and distributor of leading computer technology components and IT storage solutions, today announced that it has signed a new $8 million funding facility with Allied Affiliated Funding.

“When the new Board joined SED back in October 2013, SED had $17 million in debt under its facility with Wells Fargo. That number has since been reduced to zero and as we transition to Allied, we will do so without any outstanding bank debt,” said Sham Gad, Chairman and Chief Executive Officer of SED. “Our new relationship with Allied sets the stage for SED to rescale its business with a stable source of capital for the first time since we joined the Company.”

As SED continues to restructure and work diligently to cure the Company’s delinquent filing status, we can provide the following brief update:

SED has spent the past eight months refocusing its business as a distributor of technology components and IT solutions. The Company has exited from the housewares and consumer electronics business that resulted from the Company’s acquisition of Lehrhoff a couple of years ago. By all accounts that acquisition was a catastrophic mistake by the Company. An approximate $4.1 million acquisition price led to what we estimate to be in excess of $15 million in additional cash burn.

SED has rationalized its supplier base from nearly 100 to less than 30 core vendors. These core partners, which constitute the most innovative IT suppliers in the industry, provide the platform for SED to become a niche IT distribution partner to our customers.

SED has significantly reduced its operating cost structure. The U.S. and Miami export operations have a current headcount of approximately 50, versus over 300 a year ago. We found a replacement tenant for our 60,000 sq. ft. Southern California distribution center and are currently subleasing approximately 8,000 sq. ft. from that new tenant. Additionally, the Company recently signed a lease to open a new 7,000 sq. ft. facility in San Jose, California, putting SED within a 50 mile radius of many of our key suppliers and numerous new customers. Our export business in Miami is moving to a newer facility this month upon lease expiration. All in all, we estimate that our facilities expense is being reduced by over 70% as a result of these changes. Most importantly, we believe the reduction in square footage is more than enough to support the scaling up of SED as we focus on distributing higher margin, faster moving, IT products and solutions.

SED Latin America continues to operate soundly. We sold our Argentinian operation to a local partner leaving SED Latin America with our Colombian operations. The Argentinian businesses represented less than 10% of our Latin American revenues but represented a significant cash burn on our operations.

We also believe SED’s relationships and credibility with its core vendor partners continue to improve dramatically as evidenced by the recent selection of SED by Seagate Technologies to be one of two distributors in supporting Seagate’s surveillance market. Seagate has followed-up with its commitment by enhancing marketing allocation to SED as well as the reestablishment of a credit line for SED. SED is currently working with its other core suppliers in attempts to obtain expanded credit lines.

SED still faces the significant challenge of overcoming its legacy liabilities. SED has made significant progress to date on resolving many of these liabilities, however, work remains with respect to the Company’s liabilities in order to complete the restructuring and growth of SED going forward.

SED has begun working with its new auditor on the fiscal year 2014, ending June 30, financial statements. The Company expects that it will release its 2014 annual financials in September or October of this year.

SED’s commitment to its stakeholders remains unwavering. Lots of hard work remains ahead but SED has an amazing team of executives and associates who are working tirelessly to transform SED into an efficient operation with uncompromising integrity, and a credible and loyal partner to both our suppliers and customers.

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
DX World EXPO, LLC, a Lighthouse Point, Florida-based startup trade show producer and the creator of "DXWorldEXPO® - Digital Transformation Conference & Expo" has announced its executive management team. The team is headed by Levent Selamoglu, who has been named CEO. "Now is the time for a truly global DX event, to bring together the leading minds from the technology world in a conversation about Digital Transformation," he said in making the announcement.
"Space Monkey by Vivent Smart Home is a product that is a distributed cloud-based edge storage network. Vivent Smart Home, our parent company, is a smart home provider that places a lot of hard drives across homes in North America," explained JT Olds, Director of Engineering, and Brandon Crowfeather, Product Manager, at Vivint Smart Home, in this SYS-CON.tv interview at @ThingsExpo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that Conference Guru has been named “Media Sponsor” of the 22nd International Cloud Expo, which will take place on June 5-7, 2018, at the Javits Center in New York, NY. A valuable conference experience generates new contacts, sales leads, potential strategic partners and potential investors; helps gather competitive intelligence and even provides inspiration for new products and services. Conference Guru works with conference organizers to pass great deals to gre...
DevOps is under attack because developers don’t want to mess with infrastructure. They will happily own their code into production, but want to use platforms instead of raw automation. That’s changing the landscape that we understand as DevOps with both architecture concepts (CloudNative) and process redefinition (SRE). Rob Hirschfeld’s recent work in Kubernetes operations has led to the conclusion that containers and related platforms have changed the way we should be thinking about DevOps and...
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, demonstrated how to move beyond today's coding paradigm and shared the must-have mindsets for removing complexity from the develop...
In his Opening Keynote at 21st Cloud Expo, John Considine, General Manager of IBM Cloud Infrastructure, led attendees through the exciting evolution of the cloud. He looked at this major disruption from the perspective of technology, business models, and what this means for enterprises of all sizes. John Considine is General Manager of Cloud Infrastructure Services at IBM. In that role he is responsible for leading IBM’s public cloud infrastructure including strategy, development, and offering m...
The next XaaS is CICDaaS. Why? Because CICD saves developers a huge amount of time. CD is an especially great option for projects that require multiple and frequent contributions to be integrated. But… securing CICD best practices is an emerging, essential, yet little understood practice for DevOps teams and their Cloud Service Providers. The only way to get CICD to work in a highly secure environment takes collaboration, patience and persistence. Building CICD in the cloud requires rigorous ar...
Companies are harnessing data in ways we once associated with science fiction. Analysts have access to a plethora of visualization and reporting tools, but considering the vast amount of data businesses collect and limitations of CPUs, end users are forced to design their structures and systems with limitations. Until now. As the cloud toolkit to analyze data has evolved, GPUs have stepped in to massively parallel SQL, visualization and machine learning.
"Evatronix provides design services to companies that need to integrate the IoT technology in their products but they don't necessarily have the expertise, knowledge and design team to do so," explained Adam Morawiec, VP of Business Development at Evatronix, in this SYS-CON.tv interview at @ThingsExpo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
To get the most out of their data, successful companies are not focusing on queries and data lakes, they are actively integrating analytics into their operations with a data-first application development approach. Real-time adjustments to improve revenues, reduce costs, or mitigate risk rely on applications that minimize latency on a variety of data sources. In his session at @BigDataExpo, Jack Norris, Senior Vice President, Data and Applications at MapR Technologies, reviewed best practices to ...
Widespread fragmentation is stalling the growth of the IIoT and making it difficult for partners to work together. The number of software platforms, apps, hardware and connectivity standards is creating paralysis among businesses that are afraid of being locked into a solution. EdgeX Foundry is unifying the community around a common IoT edge framework and an ecosystem of interoperable components.
"ZeroStack is a startup in Silicon Valley. We're solving a very interesting problem around bringing public cloud convenience with private cloud control for enterprises and mid-size companies," explained Kamesh Pemmaraju, VP of Product Management at ZeroStack, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Large industrial manufacturing organizations are adopting the agile principles of cloud software companies. The industrial manufacturing development process has not scaled over time. Now that design CAD teams are geographically distributed, centralizing their work is key. With large multi-gigabyte projects, outdated tools have stifled industrial team agility, time-to-market milestones, and impacted P&L stakeholders.
"Akvelon is a software development company and we also provide consultancy services to folks who are looking to scale or accelerate their engineering roadmaps," explained Jeremiah Mothersell, Marketing Manager at Akvelon, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Enterprises are adopting Kubernetes to accelerate the development and the delivery of cloud-native applications. However, sharing a Kubernetes cluster between members of the same team can be challenging. And, sharing clusters across multiple teams is even harder. Kubernetes offers several constructs to help implement segmentation and isolation. However, these primitives can be complex to understand and apply. As a result, it’s becoming common for enterprises to end up with several clusters. Thi...