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Strategic Distribution, Inc., Bristol, PA, a provider of maintenance, repair and operating supply chain management services, reported revenues for the first quarter ended Mar. 31, 2005 decreased $3.0 million or 9.4% to $29.0 million from $32.0 million for the three months in the same period last year. The company reported a net loss of $1.6 million in the first quarter of 2005 compared to a net loss of $0.5 million in the same quarter of 2004. At Mar. 31, 2005, the company had $28.9 million of cash on hand.
The $3.0 million decrease in revenues was attributable to the termination of contracts with customers during fiscal 2004 totaling $2.6 million and the impact of recognizing $5.7 million of revenue, in the first quarter of 2004, related to supplies shipped during the third quarter of 2003 and to other service fee revenue. This $5.7 million in revenue was not recognized until the first quarter of 2004 when all of the criteria of Staff Accounting Bulletin No. 104, Revenue Recognition, were met. The revenue decline was partially offset by a $5.3 million increase in revenues resulting from increases in revenues with respect to existing customers and revenues generated by new customers.
SDI helps customers optimize their business performance and meet strategic goals by providing technology and supply chain solutions to increase productivity and reduce total costs. Commercial and industrial customers, as well as educational institutions, benefit from reduced costs and increased efficiencies in the procurement and management of maintenance, repair and operating (MRO) materials.