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IEC Electronics Corp. has reported revenues of $29.8 million for the third quarter of fiscal 2018, an increase of 12% as compared to revenues of $26.5 million for the fiscal 2017 third quarter. Gross profit margin for Q3 FY2018 was 11.3% as compared to 14% in the same quarter last year.
Selling and administrative expenses increased to $2.8 million but decreased slightly as a percentage of sales to 9.5%, as compared to $2.6 million or 9.8% of sales in the third quarter of fiscal 2017. IEC reported net income of $0.2 million for the third quarter of fiscal 2018, compared to net income of $0.8 million in the third quarter of fiscal 2017.
Revenues for the first nine months of fiscal 2018 increased 20% to $82.7 million as compared to $68.8 million in the same period of fiscal 2017. Gross profit margin for the first nine months of fiscal 2018 improved to 11.7% as compared to 11.3% in the first nine months of fiscal 2017. Selling and administrative expenses increased to $8.5 million but decreased as a percentage of sales to 10.3%, as compared to $7.7 million or 11.2% of sales in the first nine months of fiscal 2017. Net income for the first nine months of fiscal 2018 was $1.3 million, or $0.12 per share, compared to a net loss of $0.7 million, or a loss of $0.07 per share, in the same prior year period.
“We continue to see many positive signs of growth in our business as we execute our go-to-market strategy. Our fiscal 2018 third quarter revenue was lower than anticipated due to the global component shortages affecting the electronics industry. Based upon firm order commitments from our customers, we acquired materials, staffed accordingly and fully intended to deliver an additional $4 million in customer orders during the third quarter. However, due to numerous supplier de-commits and late deliveries, the orders that went unfulfilled we expect will shift into our fiscal 2018 fourth quarter, similar to what occurred from our fiscal 2018 first quarter to our fiscal 2018 second quarter. Because of this shift, our margins were under pressure during the third quarter due to higher levels of overhead and workforce staffing necessary to meet the expected volumes. Notwithstanding the aforementioned raw material constraints, I am pleased to report we experienced meaningful backlog growth with a book to bill ratio greater than 1.8:1 in our fiscal 2018 third quarter, a sequential increase over fiscal 2018 second quarter of 1.1:1, as our customers continued to outsource a greater share of work to IEC," said Jeffrey T. Schlarbaum, president and CEO of IEC Electronics.
"We have restored and continue to enhance our reputation as a reliable and consistent manufacturing partner for the life-saving and mission critical products in which we specialize. Furthermore, our backlog has increased more than 70% since the beginning of fiscal 2018 and we remain focused on continuing to expand our new business pipeline with existing and new customers. We believe our targeted go-to-market strategy, improved operations and expertise in our addressable markets position us well to continue to grow our leadership position," Schlarbaum continued.
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 here.
