Sino-Global Shipping America Q3 revenues increased 89.3%
Total revenues of this quarter increased 89.3% or $2.5 million to $5.2 million, compared to $2.7 million. The increase was primarily due to the company's efforts to diversify its business in freight logistics services.
Gross margin decreased from 58.8% to 34.5% as a result of lower margin fragmented freight logistics services have been provided to customers in the current period in comparison with the corresponding period in 2017.
The company strategically allocated its resources to develop new businesses and markets in the U.S. as the focus for its growth.
Net income for the third quarter of fiscal year 2018 was $0.24 million, as compared to a net income of $1.3 million for the same period of the prior year. The decrease was due to higher cost of revenues associated with our fragmented freight logistics services which reduced the gross margin.
In addition, our general and administrative expenses increased as a result of increased bad debt reserve and increased professional fee , and increased income tax expense of $0.26 million as compared to a tax benefit of $0.30 million recognized during the prior year period.
On March 14, 2018, the company closed a $3 million registered direct offering of its common stock and concurrent private placement of its Series A Warrants and Series B Warrants.
At March 31, 2018, the company had cash and cash equivalents of $9.5 million, and holds no long-term debt. ■