Shares of SinoHub Inc. (AMEX: SIHI), an electronics company engaged in electronics product manufacturing and sales, and electronic component sales and services, are sinking today.
At last check, SIHI was trading 21.87% lower at $0.250 on above average volume of 144,655.
Recently, SinoHub released its first-quarter financial results. The Shenzhen, China-based company reported total net sales of $61.8 million for the first quarter, representing an increase of 62.7% over the same period in the previous year.
SIHI’s gross profit for the quarter was $1.6 million, down from $7.7 million reported for the same period in 2011. Gross margin fell from 20.3% to 2.6% in the first quarter of 2012.
Net loss for the quarter was $2.2 million, compared with net income of $3.5 million reported in the first quarter of 2011.
Harry Cochran, CEO of SinoHub, said that SIHI’s first-quarter results demonstrate the continuing challenges the company faces.