Steel Connect, Inc. is a diversified holding company with two wholly-owned subsidiaries, IWCO Direct Holdings, Inc. and ModusLink Corporation, that serve the direct marketing and supply chain management markets, respectively.

Company profile
Ticker
STCN
Exchange
Website
CEO
Ralph Scobie
Employees
Incorporated
Location
Fiscal year end
Industry (SIC)
Alibaba Group Holding • Visa • EBay • DiDi Global • Uber • PayPal • Accenture • Nielsen • Fidelity National Information Services • Mastercard ...
Former names
CMG INFORMATION SERVICES INC, CMGI INC, ModusLink Global Solutions Inc
SEC CIK
Corporate docs
Subsidiaries
CMG Securities Corporation • CMG@Ventures, Inc. • CMG@Ventures Capital Corp. • CMG@Ventures Securities Corp. • CMGI@Ventures IV, LLC • @Ventures V, LLC • IWCO Direct Holdings, Inc. • IWCO, LLC • United Mailing, Inc. • Victory Envelope, Inc. ...
IRS number
42921333
STCN stock data
News
Steel Connect Q3 EPS $(0.17) Up From $(0.45) YoY, Sales $51.55M Up From $49.40M YoY
14 Jun 22
11 Information Technology Stocks Moving In Monday's Intraday Session
13 Jun 22
Here's Why Steel Connect Shares Are Up Premarket
13 Jun 22
10 Information Technology Stocks Moving In Monday's Pre-Market Session
13 Jun 22
Steel Partners and Steel Connect Enter Into Definitive Merger Agreement; Steel Connect's Shareholders Will Receive $1.35/Share In Cash And One Contingent Value Right To Receive Their Pro Rata Share Of Net Proceeds
13 Jun 22
Press releases
SHAREHOLDER INVESTIGATION: Halper Sadeh LLP Investigates STCN, FSTX
22 Jul 22
SHAREHOLDER ALERT: Weiss Law Reminds FSTX, STCN, GRRB, and ZEN Shareholders About Its Ongoing Investigations
21 Jul 22
INVESTIGATION ALERT: Halper Sadeh LLP Investigates PCSB, STCN, USWS, FSTX
18 Jul 22
Shareholder Alert - The M&A Class Action Firm Continues Investigating the Merger - FSTX, EPZM, STCN, SIMO, VMW, VHAQ
16 Jul 22
INVESTIGATION NOTICE: Halper Sadeh LLP Investigates SMED, CVET, STCN
13 Jul 22
Calendar
14 Jun 22
16 Aug 22
31 Jul 23
Financial summary
Quarter (USD) | Apr 22 | Jan 22 | Oct 21 | Jul 21 | |
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Change in cash | |||||
Diluted EPS |
Annual (USD) | Jul 21 | Jul 20 | Jul 19 | Jul 18 | |
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Revenue | |||||
Cost of revenue | |||||
Operating income | |||||
Operating margin | |||||
Net income | |||||
Net profit margin | |||||
Cash on hand | |||||
Change in cash | |||||
Diluted EPS |
Cash burn rate (est.) | Burn method: Change in cash | Burn method: Operating income | Burn method: FCF (opex + capex) | Last Q | Avg 4Q | Last Q | Avg 4Q | Last Q | Avg 4Q |
---|---|---|---|---|---|---|
Cash on hand (at last report) | 57.49M | 57.49M | 57.49M | 57.49M | 57.49M | 57.49M |
Cash burn (monthly) | 4.26M | 4.04M | (no burn) | 6.63M | (no burn) | 1.76M |
Cash used (since last report) | 15.22M | 14.43M | n/a | 23.66M | n/a | 6.28M |
Cash remaining | 42.27M | 43.06M | n/a | 33.83M | n/a | 51.21M |
Runway (months of cash) | 9.9 | 10.7 | n/a | 5.1 | n/a | 29.1 |
Recent insider trades
Date | Owner | Security | Transaction | Code | Indirect | 10b5-1 | $Price | #Shares | $Value | #Remaining |
---|---|---|---|---|---|---|---|---|---|---|
1 Jul 22 | Jeffrey J Fenton | Common Stock, $0.01 par value | Grant | Acquire A | No | No | 0 | 18,682 | 0 | 471,406 |
1 Jul 22 | Howard Jack L | Common Stock, $0.01 par value | Grant | Acquire A | No | No | 0 | 18,682 | 0 | 872,528 |
1 Jul 22 | Glen M Kassan | Common Stock, $0.01 par value | Grant | Acquire A | No | No | 0 | 18,682 | 0 | 425,650 |
1 Jul 22 | Warren G Lichtenstein | Common Stock, $0.01 par value | Grant | Acquire A | No | No | 0 | 18,682 | 0 | 1,595,599 |
1 Jul 22 | Maria Molland | Common Stock, $0.01 par value | Grant | Acquire A | No | No | 0 | 18,682 | 0 | 189,134 |
Institutional ownership, Q1 2022
46.3% owned by funds/institutions
13F holders | Current |
---|---|
Total holders | 34 |
Opened positions | 2 |
Closed positions | 7 |
Increased positions | 9 |
Reduced positions | 9 |
13F shares | Current |
---|---|
Total value | 36.08M |
Total shares | 27.97M |
Total puts | 0 |
Total calls | 25.7K |
Total put/call ratio | – |
Largest owners | Shares | Value |
---|---|---|
SPLP Steel Partners | 18.18M | $23.46M |
Renaissance Technologies | 2.2M | $2.84M |
Vanguard | 1.9M | $2.45M |
Gabelli Funds | 1.51M | $1.95M |
GBL Gamco Investors | 1.04M | $1.34M |
BLK Blackrock | 1.02M | $1.32M |
Bridgeway Capital Management | 262.85K | $339K |
BAC Bank Of America | 243.5K | $314K |
Geode Capital Management | 232.62K | $300K |
Cowen Investment Management | 216.79K | $280K |
Financial report summary
?Risks
- The divestiture of our Direct Marketing segment may not achieve the intended benefits and changes our exposures to other risks and uncertainties.
- Our future results of operations are solely dependent on the operations of our Supply Chain business segment and will differ materially from our previous results.
- Changes in our relationships with significant clients, including the loss or reduction in business from one or more of them, could have a material adverse impact on our business.
- If the demand for supply chain management services decline, or if we are unable or do not effectively integrate new or emerging industry trends into our services and offerings, our revenue and results of operations could be adversely affected.
- Because most of our contracts do not contain minimum purchase requirements and we sell primarily on a purchase order basis, we are subject to uncertainties and variability in demand by clients, which could decrease revenue materially and adversely affect our financial results.
- The COVID-19 pandemic has adversely affected, and is expected to continue to pose risks, to our business, results of operations, financial condition and cash flows, and other epidemics or outbreaks of infectious diseases may have a similar impact.
- Our business is subject to intense competition.
- Our operating results may fluctuate due to a number of factors, many of which are beyond our control, causing volatility in the price of our common stock.
- The funds held for clients may be subject to credit risk, impairment, misappropriation or theft, and any such incident could result in harm to our clients and damage to our brand.
- A decline in our key business sectors or a reduction in consumer demand generally could have a materially adverse effect on our business.
- We must maintain adequate levels of inventory in order to meet client needs, which presents risks to our financial position and operating results.
- We may have problems raising or accessing capital we need in the future.
- We may encounter problems in our efforts to increase operational efficiencies.
- Loss of essential employees or an inability to recruit and retain personnel could have a significant negative impact on our business.
- We may not be able to identify, manage, complete and integrate acquisitions and achieve anticipated synergies and benefits.
- We conduct business outside of the U.S., which exposes the Company to additional risks not typically associated with companies that operate solely within the U.S.
- Our business in Mainland China faces specific risks.
- The physical or intellectual property of our clients may be damaged, misappropriated, stolen or lost while in our possession, subjecting us to potential litigation and other adverse consequences.
- A significant disruption in, or breach in security of, our technology systems could adversely affect our business.
- Litigation pending against us could materially impact our business and results of operations.
- We may be unable to realize the benefits of our net operating loss carry-forwards and other tax benefits (collectively, "NOLs").
- There may be adverse effects on the value of your investment from our use of the Protective Amendment and Tax Plan.
- We are subject to federal, state and foreign tax audits, which could result in the imposition of liabilities that may or may not have been reserved, and changes in our provision for income taxes.
- We may be subject to state sales taxes that we have not paid, or collected from our customers or reserved for on our financial statements, which could materially and adversely affect our business, financial condition and operating results.
- Changes in tax rates, laws or regulations, including U.S. government tax reform, could have a negative impact on the results of future operations.
- Our failure to maintain compliance with Nasdaq’s continued listing requirements could result in the delisting of our common stock.
- SPH Group Holdings LLC and its affiliates own a majority of the voting power of our capital stock and have significant influence over our corporate decisions.
- Members of our Board also have significant interests in Steel Holdings and its affiliates, which may create conflicts of interest.
- There can be no assurance that the proposed Merger between us and Steel Holdings will be approved and ultimately consummated.
- Our Board may choose to effect a reverse split of the issued and outstanding shares of our common stock at the ratio of one-for-ten, the effects of which we cannot predict with certainty and which may be materially adverse to the value of your investment in our common stock.
- RISKS RELATED TO OUR INDEBTEDNESS
- Our indebtedness could restrict our operations and make us more vulnerable to adverse economic conditions.
- Changes in reference interest rates could adversely affect our results from operations and financial condition.
- An increase in our effective tax rate may adversely impact our results of operations.
Content analysis
?Positive | ||
Negative | ||
Uncertain | ||
Constraining | ||
Legalese | ||
Litigous | ||
Readability |
H.S. junior Avg
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New words:
accuracy, altered, analogy, assistance, backdrop, contingent, disinterested, dissenting, Eastern, enjoining, Excel, exercise, impeding, jointly, merge, rata, recession, restraining, slower, solicit, SP, superior, surviving, thousand, timeline, unaffiliated
Removed:
accelerated, amortization, annually, approach, approximate, attrition, capable, constitute, creative, defer, deferral, discontinuation, discounted, division, executed, forecasted, incremental, insertion, landscape, mail, negotiation, obligated, omnichannel, paper, partially, planned, postal, print, prospectively, readily, September, shareholder, subjective, summary, terminal, test, tested, type, unexpected, withdrawn
Financial reports
Current reports
8-K
Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard
10 Aug 22
8-K
Financial Statements and Exhibits
1 Aug 22
8-K
Steel Connect Reports Third Quarter Fiscal 2022 Financial Results
14 Jun 22
8-K
Steel Partners and Steel Connect Enter into Definitive Merger Agreement
13 Jun 22
8-K
Steel Connect Reports Second Quarter Fiscal 2022 Financial Results
17 Mar 22
8-K/A
Financial Statements and Exhibits
3 Mar 22
8-K
Steel Connect Announces Disposition of IWCO
25 Feb 22
8-K
Departure of Directors or Certain Officers
10 Jan 22
8-K
Steel Connect Reports First Quarter Financial Results
13 Dec 21
8-K
Steel Connect Reports Fourth Quarter Financial Results
29 Oct 21
Registration and prospectus
SC 13E3/A
Going private transaction (amended)
11 Aug 22
SC 13E3/A
Going private transaction (amended)
2 Aug 22
SC 13E3
Going private transaction
8 Jul 22
8-A12B/A
Registration of securities on exchange (amended)
8 Jan 21
S-8 POS
Registration of securities for employees (post-effective amendment)
21 Aug 20
S-8
Registration of securities for employees
21 Aug 20
POS AM
Prospectus update (post-effective amendment)
12 Oct 18
8-A12B
Registration of securities on exchange
18 Jan 18
424B1
Prospectus with pricing info
8 Mar 15
S-3/A
Shelf registration (amended)
1 Mar 15
Proxies
DEFA14A
Additional proxy soliciting materials
10 Aug 22
PRER14A
Preliminary revised proxy
2 Aug 22
PREM14A
Preliminary proxy related to merger
7 Jul 22
DEFA14A
Additional proxy soliciting materials
13 Jun 22
DEFA14A
Additional proxy soliciting materials
13 Jun 22
DEFA14A
Additional proxy soliciting materials
15 Jun 21
PRE 14A
Preliminary proxy
4 Jun 21
DEF 14A
Definitive proxy
28 Jun 20
Other
EFFECT
Notice of effectiveness
17 Oct 18
NO ACT
No action letter
21 Aug 16
EFFECT
Notice of effectiveness
8 Mar 15
CORRESP
Correspondence with SEC
3 Mar 15
UPLOAD
Letter from SEC
19 Feb 15
UPLOAD
Letter from SEC
27 Oct 14
CORRESP
Correspondence with SEC
22 Oct 14
CORRESP
Correspondence with SEC
21 Oct 14
UPLOAD
Letter from SEC
27 Jul 14
UPLOAD
Letter from SEC
9 Mar 14
Ownership
4
Steel Connect / Jeffrey S Wald ownership change
6 Jul 22
4
Steel Connect / Renata Simril ownership change
6 Jul 22
4
Steel Connect / Maria Molland ownership change
6 Jul 22
4
Steel Connect / WARREN G LICHTENSTEIN ownership change
6 Jul 22
4
Steel Connect / GLEN M KASSAN ownership change
6 Jul 22
4
Steel Connect / JACK L HOWARD ownership change
6 Jul 22
4
Steel Connect / Jeffrey J Fenton ownership change
6 Jul 22
SC 13D/A
Steel Connect / STEEL PARTNERS ownership change
14 Jun 22
SC 13D/A
Steel Connect / STEEL PARTNERS ownership change
1 Jun 22
4
Steel Connect / Jeffrey S Wald ownership change
5 Apr 22
Reddit threads
Daily Discussion Thread - June 15th, 2022
15 Jun 22
Daily Discussion Thread - June 14th, 2022
14 Jun 22
Pre-market summary - June 13th
13 Jun 22
Daily Discussion Thread - June 13th, 2022
13 Jun 22
Daily Discussion Thread - June 9th, 2022
9 Jun 22
Daily Discussion Thread - June 8th, 2022
8 Jun 22
Daily Discussion Thread - June 2nd, 2022
2 Jun 22
Daily Discussion Thread - June 1st, 2022
1 Jun 22
Daily Discussion Thread - May 31st, 2022
31 May 22
Daily Discussion Thread - May 30th, 2022
30 May 22