Nortech Systems Incorporated (NASDAQ:NSYS) today reported net sales of $26.5 million for the first quarter ended March 31, 2015, compared with $26.1 million in the first quarter of 2014.
“We’re pleased our quarterly sales increased 1.5 percent year over year despite continued macroeconomic challenges impacting some of our larger global customers,” said Rich Wasielewski, Nortech Systems’ president and CEO. “Our largest market – industrial – showed strong revenue growth, increasing 17 percent.” Nortech’s business development teams have embraced the ‘One Nortech’ cross-selling approach, evidenced by recent contract wins for higher-level assemblies integrating Nortech’s full capabilities and engineering support. The company’s 90-day backlog rose six percent since Dec. 31, 2014.
Nortech reported an operating loss of $202,000 for the first quarter of 2015, compared with operating income of $236,000 for the same period in 2014. The net loss for the first quarter of 2015 was $193,000, or $0.07 per diluted common share; this compares with net income of $86,000, or $0.03 per diluted common share, for the first quarter of 2014.
“After finishing 2014 strong, our first-quarter profitability was impacted by a number of factors,” noted Wasielewski. “These included our product mix, ramp-up costs for new programs and global economic conditions.” He continued, “We’re adjusting our cost structure to better match our short-term demand and business conditions, which we see continuing into the second quarter. We remain committed to business development spending that stimulates top-line growth and strategic initiatives that strengthen Nortech.”
These initiatives include adding printed circuit board assembly capabilities to Nortech’s Mexico facility and expanding into Asia to capitalize on opportunities for business development and material sourcing.
“We expect to start realizing the benefits of these initiatives and activities in the second half of 2015,” he explained.
As evidence of Nortech’s commitment to customer satisfaction, the company recently received a prestigious 2015 supplier excellence award from its largest medical customer. “All our employees should take pride in this major accomplishment, which illustrates their dedication to delivering on our service promise: we thrive on helping our customers succeed,” concluded Wasielewski.
Conference Call
Nortech Systems
announces a conference call to be held at 10:00 a.m. (CDT) on Thursday,
May 7, 2015, to discuss the company’s first quarter results. Anyone
interested in participating in the conference can access the call by
dialing 877-407-8031 from within the United States, or 201-689-8031 if
calling internationally. An audio webcast and replay of this conference
call can be accessed at the investor relations portion of Nortech
Systems’ website at www.nortechsys.com
or at www.investorcalendar.com.
A podcast (MP3 download) will also be available. The telephone replay
will be available through May 21, 2015, by dialing 877-660-6853 (from
U.S.) or 201-612-7415 (International). To access the replay, the
conference ID 13607695 is required.
About Nortech Systems Incorporated
Nortech
Systems Incorporated (www.nortechsys.com),
based in Wayzata, Minn., is a full-service electronics manufacturing
services (EMS) provider of wire and cable assemblies, printed circuit
board assemblies, and higher-level complete box build assemblies for a
wide range of industries. Markets served include industrial equipment,
aerospace/defense and medical. The company has manufacturing
capabilities in the U.S. and Latin America. Nortech Systems Incorporated
is traded on the NASDAQ Stock Market under the symbol NSYS.
Forward-Looking Statements
This
press release contains forward-looking statements made pursuant to the
safe harbor provision of the Private Securities Litigation Reform Act of
1995. While this release is based on management’s best judgment and
current expectations, actual results may differ and involve a number of
risks and uncertainties. Important factors that could cause actual
results to differ materially from the forward-looking statements
include, without limitation: volatility in market conditions which may
affect market supply of and demand for the company’s products; increased
competition; changes in the reliability and efficiency of operating
facilities or those of third parties; risks related to availability of
labor; commodity and energy cost instability; general economic,
financial and business conditions that could affect the company’s
financial condition and results of operations; as well as risk factors
listed from time to time in the company’s filings with the SEC.
Condensed Consolidated Statements of Operations | ||||||
Three months ended Mar. 31, | ||||||
Unaudited | ||||||
2015 | 2014 | |||||
Net Sales | $26,539,622 | $26,149,142 | ||||
Income (Loss) from Operations | (201,601) | 236,221 | ||||
Other Expense | (95,186) | (100,064) | ||||
Income before Income Taxes | (296,787) | 136,157 | ||||
Income Tax (Benefit) Expense | (104,000) | 50,000 | ||||
Net Income (Loss) | $(192,787) | $86,157 | ||||
Net Income (Loss) Per Basic and Diluted Common Share | $(0.07) | $0.03 | ||||
Weighted Average Number of Common Shares – Basic | 2,742,992 | 2,742,992 | ||||
Diluted | 2,742,992 | 2,747,858 | ||||
Condensed Consolidated Balance Sheets | ||||||
March 31, 2015 | Dec. 31, 2014 | |||||
(Unaudited) | ||||||
Current Assets | $37,983,468 | $37,680,468 | ||||
Property and Other Long-term Assets | 11,367,920 | 11,005,844 | ||||
Total Assets | $49,351,388 | $48,686,312 | ||||
Current Liabilities | $13,269,051 | $13,369,831 | ||||
Long-term Liabilities | 13,443,063 | 12,488,089 | ||||
Shareholders’ Equity | 22,639,274 | 22,828,392 | ||||
Total Liabilities and Shareholders’ Equity | $49,351,388 | $48,686,312 | ||||
Contacts:
Paula Graff, 952-345-2244
or
Brookside
Communications Group
Warren Djerf, 952-920-3908
warren@brookcomm.net