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IEC reported revenues of $47.5 million for the first quarter of fiscal 2021, an increase of 6.1% as compared to revenues of $44.7 million for the first quarter of the year ended September 30, 2020 (“fiscal 2020”) and a slight sequential increase as compared to the fourth quarter of fiscal 2020. Gross profit for the first quarter of fiscal 2021 was $5.7 million, or 12.1% of sales, compared to gross profit of $5.2 million, or 11.7% of sales in the first quarter of fiscal 2020, which included the negative impact of a one-time inventory reserve of $1.0 million related to a reorganization at one of the Company’s medical customers. Selling and administrative expenses were $3.5 million in the first quarter of fiscal 2021, a slight increase compared to the first quarter of fiscal 2020, and 7.4% percent of sales for both periods. Operating income was $2.2 million for the first quarter of fiscal 2021, an increase of $0.3 million, or 14.5% when compared to the same quarter in the prior fiscal year.
The Company reported net income of $1.5 million, or $0.15 per basic share and $0.14 per diluted share for the first quarter of fiscal 2021, compared to net income of $1.2 million, or $0.11 per basic and diluted share in the first quarter of fiscal 2020. As previously discussed, adjusted for the impact of a one-time inventory reserve in the first quarter of fiscal 2020, adjusted net income per common share would have been $0.19 per basic share and $0.18 per diluted share. Please see the reconciliation tables included in this release for further information regarding these non-GAAP measures. The Company also reported operating cash usage of $4.9 million during the first quarter of fiscal 2021, as compared to $2.3 million of cash provided by operating activities for the same period in fiscal 2020.
Jeffrey T. Schlarbaum, President and CEO of IEC Electronics Corp. commented, “We delivered a strong start to fiscal 2021, achieving revenue growth, improved gross margin and enhanced profitability. Revenue grew both year over year and sequentially despite employee absenteeism across several of our manufacturing facilities due to COVID-19, largely related to contact tracing precautions rather than positive cases. This resulted in underutilization on the production floor for a portion of the first quarter of fiscal 2021. The post-holiday spike in virus cases appears to be receding, and with workforce attendance returning to normal levels, we expect to see production levels normalize.
“As we move through fiscal 2021, we believe IEC is well-positioned to drive continued organic growth, maintain industry-leading margins and deliver enhanced profitability. Our reputation as a consistent and reliable manufacturing partner for high complexity, life-saving and mission critical products continues to gain traction with customers in the marketplace. Likewise, as a 100% U.S.-based manufacturer with a full suite of vertically integrated production services, we believe we have a competitive advantage in attracting partners from a variety of regulated industries who are looking for the highest levels of intellectual property protection and supply chain management. We believe we are competitively positioned to continue to win new customers and programs and look forward to continuing to grow our leadership position as a provider of highly complex manufacturing solutions.”