Nortech Systems Reports Q3 2017 Net Sales of $28M


Reading time ( words)

Nortech Systems Inc. has reported net sales of $28.3 million for the third quarter ended September 30, compared with net sales of $29.7 million for the third quarter of 2016. For the nine months ended September 30, Nortech's net sales were $86.8 million, compared with $87.6 million for the same period in 2016.

Operating income for the third quarter was $284,000, compared with $190,000 for the third quarter of 2016. For the nine-month period, Nortech reported operating income of $500,000, compared with $301,000 for the same period in 2016.

Nortech Systems reported third quarter net income of $43,000, compared with $63,000 for the same period last year. For the nine months ended September 30, 2017, the company reported net income of $13,000. This compares with a net loss of $54,000 for the same period in 2016.

“While our defense and industrial customers are beginning to show positive traction, our third quarter results were impacted by a seven percent decline in medical sales,” said Rich Wasielewski, Nortech Systems’ president and CEO. After a long run of medical growth for Nortech, the recent trends in the medical market, along with program delays, have resulted in less engineering project work and product revenue.

Industry factors negatively impacting U.S. medical technology companies include uncertainty about the future of the federal medical device tax, increased FDA regulations and lower venture capital funding.

Wasielewski expects the medical sector will continue to present challenges through the remainder of 2017 and the first half of next year as several of Nortech’s larger OEM medical customers work down inventory levels.

“Our diverse customer base across three core markets and our globalization strategy remain key strengths,” Wasielewski concluded. “We’re also supporting infrastructure, operations and business development activities to target profitable growth.” Enhancing Nortech’s technical resources, information systems and “One Nortech” cooperation across facilities is aimed at providing better customer service and an improved return to shareholders.

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., Mexico and China. Nortech Systems Incorporated is traded on the NASDAQ Stock Market under the symbol NSYS.

Share


Suggested Items

Tempo Automation's Open House Raises the Curtain in San Francisco

11/28/2018 | Nolan Johnson, I-Connect007
Based in San Francisco, Tempo Automation specializes in rapid PCB assembly and on low volume production for a wide range of board complexities. It recently held an open house at its brand-new facility in the South of Market (SoMa) district—which is normally restricted under customer non-disclosure agreements as well as International Traffic in Arms Regulations (ITAR) regulations—to customers, vendors, local designers, and government officials.

Green Circuits' Joe O'Neil and Joe Garcia on the Best Kept Secret

11/12/2018 | Nolan Johnson, I-Connect007
Joe O'Neil, CEO, and Joe Garcia, VP of sales and marketing, at Green Circuits discuss with I-Connect007 Managing Editor Nolan Johnson about recruiting new employees, new training and certification requirements, tariffs, and more.

IMPACT Washington D.C., 2018 with Juki Automation’s Bill Astle

08/01/2018 | Patty Goldman, I-Connect007
I-Connect007's Patty Goldman caught up with Juki Automation’s Bill Astle during a luncheon on the last day of IMPACT Washington D.C., 2018. As a first-time attendee, Bill came away feeling like he made the right connections with key members of Congress, and he looks forward to returning to the event in the future.



Copyright © 2018 I-Connect007. All rights reserved.