Reading time ( words)
IEC Electronics Corp. has reported revenues of $31.8 million for the fiscal 2018 second quarter ended March 30, 2018, an increase of 49% as compared to revenues of $21.4 million for the second quarter of fiscal 2017. Gross profit margin was 15.1% as compared to 10.7% in the same quarter last year.
Selling and administrative expenses increased on a dollar basis to $2.9 million but decreased as a percentage of sales to 9.2%, as compared to $2.7 million or 12.5% of sales in the second quarter of fiscal 2017. The company reported net income of $1.6 million for the second quarter of fiscal 2018, compared to a net loss of $0.6 million in the second quarter of fiscal 2017.
Revenues for the first six months of fiscal 2018 increased 25% to $52.9 million as compared to $42.3 million in the same period of fiscal 2017. Gross profit margin was 11.9% as compared to 9.6% in the first six months of fiscal 2017, and selling and administrative expenses increased on a dollar basis to $5.7 million but decreased as a percentage of sales to 10.8%, as compared to $5.1 million or 12% of sales in the first six months of fiscal 2017. Net income for the first six months of 2018 was $1.1 million, compared to a net loss of $1.5 million in the same prior year period.
Jeffrey T. Schlarbaum, President and CEO of IEC Electronics, commented, "We're pleased to have delivered strong second quarter results, characterized by significant revenue growth, gross margin improvement and a return to profitability. As expected, our conversion of backlog to sales improved during the quarter, including the shift of several program deliveries from the first quarter to the second quarter. Importantly, our sales pipeline and backlog continue to grow as a result of our ability to generate new program activity from existing customers and to attract new customers. This success can be attributed to our focus on improving our operations and project execution, as well as to our sales team’s ability to target the right customers for our skill set.
"We continue to encounter global supply chain challenges related to component shortages, and remain actively involved with our supply chain partners to minimize any impact on our ability to assemble and ship products for our customers. As we've previously discussed, our new program onboarding process can be lengthy and complex, but we have a skilled and experienced team in place to ensure we do everything within our control to support our customers. We are energized by our second quarter performance and optimistic about the remainder of 2018 given the opportunities presented by our robust sales pipeline and growing backlog.
"Our balance sheet remains strong, providing a solid foundation for our growth as we further our positon as a leading provider of electronic manufacturing solutions for life-saving and mission critical products. To continue to support this growth, we recently amended our credit facility with M&T Bank which increases the company’s revolving credit commitment from $16 million to $22 million. This is an exciting time for IEC as we look forward to driving the momentum we saw in the second quarter."
About IEC Electronics
IEC Electronics is a provider of 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, AS9100D, 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.