IEC Announces Q1 Fiscal 2017 Results


Reading time ( words)

IEC Electronics Corp. has announced results for the fiscal 2017 first quarter ended December 30, 2016.

IEC reported revenues of $21 million for the first quarter of fiscal 2017, a decrease of 36.3% as compared with revenues of $32.9 million in the first quarter of fiscal 2016. Gross profit margin for the first quarter was 8.6% as compared to 17.7% in the same quarter last year. Selling and administrative expenses decreased to $2.4 million or 11.6% of sales as compared to $4.0 million or 12.1% of sales in the first quarter of fiscal 2016. The Company recorded a net loss of $0.9 million or ($0.09) per share, compared to net income of $1.5 million, or $0.15 per share, in the same prior year period. IEC reduced debt, net of cash, by $7.2 million in the first quarter of fiscal 2017, which includes the pay down of debt from the proceeds of the sale-leaseback transaction for the Company's Albuquerque facility, previously disclosed in the fourth quarter of fiscal 2016.

Jeffrey T. Schlarbaum, President and CEO of IEC Electronics, commented, "As we expected and previously announced, our first quarter revenues and profitability were negatively impacted by reduced volume from two key customers. Importantly, the softness is not the result of lost programs and these customers are long-term partners who we believe remain committed to working with IEC. We expect this revenue decrease will persist through the second quarter of fiscal 2017, but we are optimistic that volume should ramp up in the second half of fiscal 2017, enabling us to exit fiscal 2017 similar to the levels achieved in fiscal 2016.

"We took proactive steps early in the first quarter to better align our cost structure at our Newark, New York facility while retaining the key skilled labor and expertise to support the expected volume increase in the second half of fiscal 2017. The revenue contraction and related margin decrease was isolated to our Newark facility, while our other facilities achieved solid gross profit performance. We believe that we are well positioned to return to our industry leading margins and profitability as volume returns.

"At this phase of the turnaround, a key strategic focus is re-establishing organic growth by broadening and improving the quality of our new business pipeline. To that end, we have made changes to our sales infrastructure to extend our reach in core markets and better qualify customers who are best suited to our capabilities and expertise. The sales cycle is long in our industry, but we have seen encouraging initial success from these efforts, with backlog up from our fiscal year-end and an improved pipeline.

Schlarbaum concluded, "Our continued debt reduction and ongoing focus on managing our assets more efficiently continues to strengthen the balance sheet, providing a solid platform supporting our initiatives to win new customers and programs. We are making steady progress with our turnaround efforts and we are continuing to build on our strong reputation in the marketplace as a leading provider of unique design and manufacturing solutions for the production of life-saving and mission critical products. We are energized by the successful operating improvements we have made so far and encouraged by our prospects moving forward."

About IEC Electronics

IEC Electronics provides electronic manufacturing services ("EMS") to advanced technology companies that produce life-saving and mission critical products for the medical, industrial, aerospace and defense sectors. The Company specializes in delivering technical solutions for the custom manufacture of complex full system assemblies by providing on-site analytical testing laboratories, custom design and test engineering services combined with a broad array of manufacturing services encompassing electronics, interconnect solutions, and precision metalworking. As a full service EMS provider, IEC holds all appropriate certifications for the market sectors it supports including ISO 9001:2008, AS9100C, ISO 13485, and Nadcap. IEC Electronics is headquartered in Newark, NY and also has operations in Rochester, NY and Albuquerque, NM. Additional information about IEC can be found on its web site at www.iec-electronics.com.

Share

Print


Suggested Items

Zentech's Mission-critical Tips for Program Success

05/03/2019 | Nolan Johnson, I-Connect007
Nolan Johnson and John Vaughan, I-Connect007 columnist and VP of sales and marketing at Zentech Manufacturing, discuss how to make customer programs successful through early communication, complete design packages, and more from a company servicing mission- and life-critical industries, including military, aerospace, and medical.

A Young Engineer’s Perspective

04/15/2019 | Barry Matties, I-Connect007
Jeffrey Diament, a recent Princeton University graduate and an engineering associate from sensor manufacturer Instrumems, talks about the company’s nanowire sensing platform that can measure velocity, temperature, and humidity. Being his first career job out of college, Diament discusses his experience on the hardware and manufacturing side of things and offers advice to other young professionals.

IPC Working to Revive Lead-Free R&D in High-Reliability Sectors

04/10/2019 | Chris Mitchell, IPC VP, Global Government Relations
Ask yourself the following question: Why is it that the aerospace, defense and high performance (ADHP) electronics sectors remain reliant on lead solders and components even as the commercial sector has largely phased out their use?



Copyright © 2019 I-Connect007. All rights reserved.