Nortech Systems Incorporated (Nasdaq: NSYS), a leading provider of full-service electronics manufacturing services (EMS), today reported net sales of $29.0 million for the first quarter ended March 31, 2016, a nine percent increase over net sales of $26.5 million for the first quarter of 2015.
For the first quarter of 2016, operating income was $221,000, compared with an operating loss of $202,000 for the first quarter of 2015. First quarter net income of $63,000, or $0.02 per diluted common share, compares with a net loss of $193,000, or $0.07 per diluted common share, in the prior year.
“Our revenue improvement was aided by last year’s acquisition,” said Rich Wasielewski, Nortech Systems’ president and CEO. “Our new medical device engineering services accounted for more than half of the increase.” The acquisition was made in the third quarter of 2015.
“Performance was mixed across customers and markets, with medical and defense showing revenue and backlog growth,” he continued. “The industrial market faced the most headwinds, especially the transportation, semiconductor and energy sectors.”
The overall revenue increase, higher gross margin and fixed-cost leveraging accounted for the quarterly profit improvement, according to Wasielewski. In addition, Nortech generated $1.3 million in operating cash flow.
“We’re encouraged by our first quarter results,” he concluded. “We expect volatility to continue through the first half of the year, but our order pipeline and early engagement opportunities give us optimism for the remainder of 2016.”
Conference Call
Nortech Systems
will hold a conference call at 10:00 a.m. (CDT) on Thursday, May 5,
2016, to discuss the company’s first quarter results. Anyone interested
in participating in the conference can access the call by dialing
866-932-0173 from within the United States, or 785-424-1630 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 19, 2016, by dialing 877-481-4010 (from
U.S.) or 919-882-2331 (International). To access the replay, the
conference ID 10023 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 March 31, | |||||
Unaudited | |||||
2016 | 2015 | ||||
Net Sales | $28,950,042 | $26,539,622 | |||
Income (Loss) from Operations | 220,948 | (201,601) | |||
Interest Expense | (132,022) | (95,186) | |||
Income (Loss) before Income Taxes | 88,926 | (296,787) | |||
Income Tax Expense (Benefit) | 26,000 | (104,000) | |||
Net Income (Loss) | 62,926 | (192,787) | |||
Net Income (Loss) per Basic and Diluted Common Share | $0.02 | $(0.07) | |||
Weighted Average Number of Common Shares: | |||||
Basic | 2,746,325 | 2,742,992 | |||
Diluted | 2,748,771 | 2,742,992 | |||
Condensed Balance Sheets
March 31, 2016 | December 31, 2015 | |||
Unaudited | ||||
Accounts Receivable | $16,192,500 | $18,431,746 | ||
Inventories | 21,246,345 | 20,185,445 | ||
Other Current Assets | 2,305,554 | 1,755,548 | ||
Property and Other Long-term Assets | 16,408,267 | 16,192,348 | ||
Total Assets | $56,152,666 | $56,565,087 | ||
Accounts Payable | $12,197,858 | $13,041,377 | ||
Other Current Liabilities | 6,806,047 | 6,630,333 | ||
Line of Credit – Long-term | 8,223,127 | 7,691,237 | ||
Long-term Debt and Other Long-term Liabilities | 6,589,858 | 6,930,284 | ||
Shareholders’ Equity | 22,335,776 | 22,271,856 | ||
Total Liabilities and Shareholders’ Equity | $56,152,666 | $56,565,087 |
View source version on businesswire.com: http://www.businesswire.com/news/home/20160504006678/en/
Contacts:
Paula Graff, 952-345-2244
or
Brookside
Communications Group
Warren Djerf, 952-920-3908
warren@brookcomm.net