On September 16, 2013, Paragon Technologies, Inc expressed its view that change is urgently needed in SED International Holdings, Inc's board. Paragon also said that it has become increasingly concerned regarding Company's rapidly deteriorating financial performance under the existing Company's board, which has been attempting to turn the company around for five years, with mounting restructuring costs and financial conditions only worsening: Net losses of almost $8.0 million during the nine-month period ended March 31, 2013; Deterioration in shareholders' equity by 33% in the same nine-month period; No net earnings in the past five years, but instead an aggregate loss of nearly $5.0 million; and Board compensation of more than $2.4 million in the past five years.