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

Process Ionic Contamination Test (PICT) Standard Roundtable With Industry Experts

04/22/2020 | I-Connect007
With standards committees set to release the first of four new test standards, industry experts discussed the process ionic contamination test (PICT) standard, which was recently approved by the IEC for publication. Roundtable participants included Teresa Rowe, senior director of assembly and standards technology at IPC, Graham Naisbitt, chairman and CEO of Gen3, Jason Keeping, corporate process development at Celestica, and Doug Pauls, principal materials and process engineer at Collins Aerospace.

SMTA Europe’s Electronics in Harsh Environments Conference and Exhibition: A Taste of Things to Come

04/14/2020 | Pete Starkey, I-Connect007
SMTA Europe’s Electronics in Harsh Environments Conference has become a must-attend annual event; unfortunately, it also became another casualty of the COVID-19 lockdown. Scheduled to take place in Amsterdam, the Netherlands, from April 21–23, 2020, it has now been postponed until December 1–3. Pete Starkey reports on a preview seminar presented by SMTA Europe.

This Month in SMT007 Magazine: Exclusive Interview With Burt Rutan, Aerospace Legend

04/03/2020 | I-Connect007 Editorial Team
If you follow advancements in aerospace technologies and expeditions, then you know the name Burt Rutan. Described by Newsweek as “the man responsible for more innovations in modern aviation than any living engineer,” Rutan is a bold visionary with a passion for the advancement of technology, who has designed 46 aircraft throughout his career. Following his IPC APEX EXPO keynote presentation, Rutan stopped by the I-Connect007 booth and shared his thoughts on a wide variety of topics.



Copyright © 2020 I-Connect007. All rights reserved.