Reading time ( words)
Nortech Systems Inc. has reported net sales of $30.1 million for the second quarter ended June 30, 2017, a four percent increase over net sales of $28.9 million for the second quarter of 2016. For the six months ended June 30, 2017, Nortech Systems' net sales rose slightly to $58.5 million, up from $57.9 million in the same period in 2016.
For the second quarter of 2017, Nortech Systems reported operating income of $95,000, an improvement of $205,000 compared with the prior-year period loss. For the first six months of 2017, Nortech Systems reported operating income of $215,000, compared with $111,000 for the same period last year.
For the second quarter of 2017, Nortech Systems reported a net loss of $16,000, or $0.01 per diluted common share, compared with a net loss of $180,000, or $0.07 per diluted common share, for the same period last year. For the six months ended June 30, 2017, Nortech Systems reported a net loss of $30,000, or $0.01 per diluted common share. This compares with a net loss of $117,000, or $0.04 per diluted common share, for the first six months of 2016.
"Our second quarter revenue increased both year over year and sequentially, led again by medical sales," said Rich Wasielewski, Nortech Systems president and CEO. "We continue building on our strategies of growing our medical business and globalization to meet our customers’ needs regionally – in the United States, Mexico and China."
Nortech Systems' improved profitability for the quarter was mainly the result of the revenue increase and contributions from its China operations, which is positively contributing in 2017 compared with start-up expenses last year.
During the second quarter, Nortech announced a new commercial banking agreement with Bank of America Merrill Lynch, providing a new credit facility of up to $21 million with an additional $20 million accordion feature. Also in the second quarter, Nortech named Matt Mahmood its new Chief Operating Officer; he brings a strong background in global manufacturing, metric-driven management, continuous improvement and automation.
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, medical and aerospace/defense. 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.