Steel Connect, Inc. - STCN STOCK NEWS

Steel Connect, Inc. (NASDAQ: STCN) reported its Q2 2023 financial results with net revenue from continuing operations at $50.8 million, down 6.5% year-over-year from $54.3 million. The company posted a net loss of $0.5 million, a significant improvement from $1.5 million in the same quarter last year. For the first half of fiscal 2023, revenue increased 3.5% to $102.1 million, with net income from continuing operations reaching $4.4 million, compared to a loss of $2.5 million in the prior year. Adjusted EBITDA rose 164% to $4.6 million, driven by improved gross margins and operating efficiencies.

Steel Connect, Inc. (STCN) reported a strong financial performance for Q1 2023, with net revenue from continuing operations of $51.4 million, up from $44.4 million year-over-year. The company turned a net income of $5.0 million compared to a loss of $1.0 million in the previous year. Adjusted EBITDA saw a significant increase to $7.3 million from $0.6 million. Cash flow from operations was $8.3 million, and free cash flow reached $7.7 million. The total debt stood at $11.5 million, highlighting improved financial health.

Steel Partners Holdings (NYSE: SPLP) has terminated its merger agreement with Steel Connect (NASDAQ: STCN), initially dated June 12, 2022. The agreement was called off after failing to gain majority approval from Steel Connect's shareholders not affiliated with Steel Partners. As a result, Steel Connect will remain publicly traded on NASDAQ under the ticker 'STCN'. Further shareholder meeting results will be disclosed in future SEC filings. This decision marks a significant change in the anticipated corporate structure for both companies.

Steel Connect, Inc. (NASDAQ: STCN) announced the termination of its merger agreement with Steel Partners Holdings L.P. (NYSE: SPLP). The merger, intended to transfer all STCN common stock not already owned by SPLP, failed due to lack of approval from a majority of outstanding shares held by non-affiliated shareholders. Consequently, Steel Connect remains a publicly traded entity on NASDAQ. The final results of the recent stockholder annual meeting will be disclosed in filings with the U.S. Securities and Exchange Commission.

Steel Connect, Inc. (NASDAQ: STCN) reported a net revenue of $53.0 million for Q4 2022, an increase of 11.2% from the previous year. The net income from continuing operations was $2.9 million, compared to a net loss of $0.4 million in Q4 2021. For FY 2022, net revenue totaled $203.3 million, down 10.2% year-over-year, with a net loss of $13.1 million. Adjusted EBITDA saw a rise to $8.0 million for the fiscal year. As of July 31, 2022, total debt was $11.0 million, while cash and equivalents were $53.1 million.

Steel Connect, Inc. (NASDAQ: STCN) announced the adjournment of its 2021 Annual Meeting of Stockholders, now set for November 15, 2022, at 11:00 a.m. ET. The meeting will be held online, and stockholders must vote before 11:59 p.m. ET on November 14, 2022. The record date for voting remains August 19, 2022. Stockholders are encouraged to vote 'FOR' the proposals listed in the proxy statement, which Steel Connect will continue to solicit during the adjournment.

Steel Connect, Inc. (NASDAQ: STCN) has announced the adjournment of its 2021 Annual Meeting of Stockholders, which will reconvene on October 14, 2022, at 12:00 p.m. Eastern time. The meeting will be conducted virtually. Stockholders are encouraged to vote on the proposals outlined in the Proxy Statement, which can be accessed online. Proxies submitted prior to adjournment will be counted at the reconvened meeting. All votes must be received by 11:59 p.m. on October 13, 2022 to be considered.

Labaton Sucharow is investigating potential legal violations on behalf of Steel Connect Inc. shareholders (NASDAQ: STCN). The firm aims to protect investors who may have been harmed by these actions. Shareholders are encouraged to participate in the investigation. For further assistance and information, investors can contact David J. Schwartz at Labaton Sucharow.

Hillandale Advisors, representing approximately 2.0% of Steel Connect's (STCN) minority shares, criticized Steel Partners Holdings' (SPLP) merger proposal. They argue that the offer undervalues STCN, with a 61% discount to SPLP's acquisition price and minimal recognition of STCN's $2 billion in tax assets. Hillandale plans to vote against the merger, advocating for an alternative structure that could allow minority shareholders to benefit from tax savings. They expressed concerns over the Board's lack of engagement with minority shareholders regarding these significant financial aspects.