Net sales decreased 2.4 percent to $188,219,000 as compared to $192,886,000 for the comparable period last year. Sequentially, net sales between the second and third quarters of fiscal 2009 declined by 11.1 percent, or $23,594,000, due to softness in demand worldwide associated with the current economic slowdown, as well as a $13,800,000 non-recurring systems order in the second quarter of fiscal 2009 for discontinued Sun Microsystems products.
Net income for the quarter was $150,000, as compared to a net loss of ($373,000) for the third quarter of the prior year. The net income in the third quarter of 2009 included an income tax benefit of $1,127,000 based on a domestic loss in the third quarter and tax adjustments related to the fiscal 2008 Federal tax filing, partially offset by foreign income tax. For the nine months ended November 30, 2008, net sales increased to $600,184,000 from $553,487,000 in the comparable period last year, an increase of 8.4 percent. Net income for the first nine months of fiscal 2009 was $1,497,000, compared to net income of $2,098,000, in the same period last year.
Sales per region
Sales in Asia, which were less negatively impacted during the quarter than other regions, increased approximately 11 percent compared to the third quarter of fiscal 2008, but declined approximately 4 percent sequentially. Sales in North America declined approximately 6 percent compared to the prior year period and approximately 14 percent sequentially. Excluding the non-recurring systems sales of $13,800,000 reported in the second quarter of fiscal 2009, North American sales declined approximately 5 percent sequentially during the third quarter of fiscal 2009. Sales in Europe declined approximately 12 percent, compared to the same period in 2008, and approximately 6 percent sequentially, driven by the major softness in the demand environment throughout this region.
While demand was particularly weak in the UK, sales in Germany were significantly higher year-over-year due to increased marketshare, although these sales also declined sequentially. A comparison of sales by geographic area is included as Exhibit A below.
