Nortech Systems Announces Q3 2021 Results

Reading time ( words)

Nortech Systems Incorporated, a leading provider of engineering and manufacturing solutions for complex electromedical and electromechanical products serving the medical, aerospace & defense and industrial markets, reported net sales of $29.5 million for the quarter ended September 30, 2021, an increase of 11.7% compared to $26.4 million for the third quarter of 2020. The revenue improvement was primarily due to higher production volume resulting from actions to scale the direct labor workforce and strengthen the supply chain for parts. Net income for third quarter 2021 was $3.6 million and $1.24 per diluted share compared to a net income of $2.0 million and $0.73 per diluted share for the third quarter of 2020.

In May 2021 Nortech announced that it planned to apply for the Employee Retention Credit (ERC) to support ongoing investment in Nortech's frontline workforce to drive increased manufacturing output to meet our customers' rising demand. The Company has filed an application for the ERC with the IRS and recognized $5.2 million reduction to payroll tax expense in the fiscal third quarter of 2021. The Company has not received funds as of the date of this press release.

Operating results from the third quarter of 2020 included a $3.8 million gain on the sale and leaseback transaction for its Bemidji and Mankato, Minnesota manufacturing facilities. Proceeds from the sale-leaseback in August 2020 were used to pay down bank debt. 

"Nortech's bookings continue to be strong resulting in another record backlog. Meanwhile, our operations team has been improving the supply chain to deliver high quality parts to our customers while optimizing our investment in working capital," said Jay D. Miller, Chief Executive Officer and President. "We expect improved results in the fourth quarter and our $79 million backlog represents an encouraging vote of confidence from our customers that bodes well for growth throughout 2022. Finally, I'm very enthusiastic about the innovative new technologies Nortech has been developing that will help our customers compete better and stay on the cutting edge of new digital data opportunities in 2023 and beyond."

04/26/2023 | I-Connect007

In this episode, Koh Young topic expert Ivan Aduna examines how closed-loop communication can make all the difference when it comes to inspection and achieving zero defects in your production line. Ivan also explores the importance of equipment suppliers working together to create M2M connections that allow for real-time exchange of SPI and AOI measurement data between machines—all in under four minutes.

11/19/2014 |

The implementation of surface-mount devices is crucial for smartphone manufacturers, offering increased component density and improved performance. Mobile products generally use an epoxy underfill to adhere components to the PCB to meet the mechanical strength requirements of a drop test. Reworking glued components is the most difficult application in the electronics industry, and must be addressed as a process.

10/15/2014 | Scott Zerkle, Yamaha Motor IM America Inc.

Today's robots can solve many manufacturing issues and are more cost effective than the ongoing costs of human labor. The purchase of a robot is a three- to five-year payoff, after which the expense is reduced to maintenance and utilities. A robot that matches the cycle time of the manual operation will most certainly surpass a human in efficiency over time.