Nortech Systems Incorporated (Nasdaq: NSYS), a leading provider of full-service electronics manufacturing services (EMS), today reported net sales of $31.4 million for the fourth quarter ended December 31, 2015, a three percent increase over net sales of $30.4 million for the fourth quarter of 2014. Net sales for the 2015 fiscal year ended December 31 rose three percent, to $115.2 million, compared with $112.0 million reported for fiscal 2014.
For the fourth quarter of 2015, operating income was $329,000, compared with $318,000 for the fourth quarter of 2014. Fourth quarter net income of $123,000, or $0.04 per diluted common share, compares with $214,000, or $0.08 per diluted common share, in the fourth quarter of 2014. For fiscal 2015, the net loss was $571,000, or $0.21 per diluted common share. This compares with net income of $880,000, or $0.32 per diluted common share, for fiscal 2014.
“Our performance rebounded in the fourth quarter, finishing an eventful and challenging fiscal 2015,” said Rich Wasielewski, Nortech Systems’ president and CEO. “The increased revenue, ongoing cost-containment initiatives and reduced ramp-up costs led to profit improvements in the quarter.
“We’re pleased with the progress on our strategic initiatives and our business-development efforts,” he continued. “Our medical device engineering acquisition has been accretive and also fosters early-engagement opportunities targeted for this growth market.
“Business conditions in 2016 are looking similar to last year, with mixed performance continuing among our global customers and markets,” Wasielewski noted. “Our leading indicators – pipeline, backlog and engineering project activities – are in better condition than a year ago with some quarterly volatility expected.” He added, “With several key investments moving into the execution stage, we’re focusing on growth in the medical market and profit improvements from operational efficiency and asset utilization.”
Conference Call
Nortech Systems
will hold a conference call at 10:00 a.m. (CST) on Thursday, March 10,
2016, to discuss the company’s fourth quarter and fiscal year 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 March 24, 2016, by dialing 877-660-6853 (from
U.S.) or 201-612-7415 (International). To access the replay, the
conference ID 13630938 is required.
About Nortech Systems Incorporated
Nortech
Systems Incorporated (www.nortechsys.com),
based in Maple Grove, 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 operations in the U.S.,
Latin America and Asia. 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 Statement of Operations | ||||||||||||
Three months ended Dec. 31, | Twelve months ended Dec. 31, | |||||||||||
Unaudited | Unaudited | |||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||
Net Sales | $31,441,746 | $30,446,176 | $115,191,905 | $112,041,650 | ||||||||
Income (Loss) from Operations | 328,559 | 318,391 | (422,048 | ) | 1,328,607 | |||||||
Other Expense | (124,226 | ) | (95,929 | ) | (465,374 | ) | (367,590 | ) | ||||
Income (Loss) before Income Taxes | 204,333 | 222,462 | (887,422 | ) | 961,017 | |||||||
Income Tax Expense (Benefit) | 81,000 | 8,000 | (316,000 | ) | 81,000 | |||||||
Net Income (Loss) | 123,333 | 214,462 | (571,422 | ) | 880,017 | |||||||
Net Income (Loss) per Basic and Diluted Common Share | $0.04 | $0.08 | $(0.21 | ) | $0.32 | |||||||
Weighted Average Number of Common Shares: | ||||||||||||
Basic | 2,746,325 | 2,742,992 | 2,745,759 | 2,742,992 | ||||||||
Diluted | 2,748,977 | 2,752,644 | 2,745,759 | 2,748,825 | ||||||||
Condensed Balance Sheets | ||||
December 31, 2015 | December 31, 2014 | |||
Unaudited | ||||
Accounts Receivable | $18,431,746 | $17,367,668 | ||
Inventories | 20,185,445 | 18,528,418 | ||
Other Current Assets | 1,755,548 | 1,348,382 | ||
Property and Other Long-term Assets | 16,192,348 | 11,292,844 | ||
Total Assets | $56,565,087 | $48,537,312 | ||
Accounts Payable | $13,041,377 | $9,008,426 | ||
Other Current Liabilities | 6,630,333 | 4,361,405 | ||
Line of Credit – Long-term | 7,691,237 | 7,998,184 | ||
Long-term Debt and Other Long-term Liabilities | 6,930,284 | 4,340,905 | ||
Shareholders’ Equity | 22,271,856 | 22,828,392 | ||
Total Liabilities and Shareholders’ Equity | $56,565,087 | $48,537,312 | ||
View source version on businesswire.com: http://www.businesswire.com/news/home/20160309006324/en/
Contacts:
Paula Graff, 952-345-2244
or
Brookside
Communications Group
Warren Djerf, 952-920-3908
warren@brookcomm.net