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IEC Electronics Corp. announced results for the fiscal 2019 first quarter ended December 28, 2018.
IEC reported revenues of $35.4 million for the first quarter of fiscal 2019, an increase of 68% as compared to revenues of $21.2 million for the fiscal 2018 first quarter ended December 29, 2017. Gross profit margin for the first quarter of fiscal 2019 improved to 14.3% as compared to 7.2% in the same quarter last year. Selling and administrative expenses increased to $3.4 million but decreased as a percentage of sales to 9.5%, as compared to $2.8 million or 13.2% of sales in the first quarter of fiscal 2018. The Company reported net income of $1.1 million, or $0.10 per basic and diluted share for the first quarter of fiscal 2019, compared to a net loss of $0.5 million, or a loss of $0.05 per basic and diluted share, which includes a $0.10 benefit from a one-time tax adjustment, in the first quarter of fiscal 2018.
Jeffrey T. Schlarbaum, President and CEO of IEC Electronics commented, “We’re pleased to have delivered a strong start to fiscal 2019, reflected in significantly increased revenue and enhanced profitability. As we expected, in addition to year over year improvement, we also achieved sequential revenue growth of 4% compared to the fourth quarter of 2018, a notable development as historically our first quarter performance typically shows a sequential decline. This growth is purely organic, driven largely by our ability to win new programs from existing customers, reflecting growing confidence in IEC as a dependable manufacturing partner and the value of our portfolio of vertically integrated offerings. Furthermore, we continued to see strong bookings, achieving an increased book to bill ratio of 1.6:1 at December 28, 2018, up from 1.3:1 at September 30, 2018, resulting in a double digit growth to our overall company backlog.
“Our industry and our Company continue to experience the effects of global component shortages and we are focused on managing our workforce and inventory levels so that we remain in the position to efficiently convert our strong backlog. In order to support our customers as their orders move from backlog to production, we invest in labor and overhead as necessary to ensure we can support the needs of our expanding customer base.”
Schlarbaum concluded, “As we continue through fiscal 2019, we believe we’re competitively positioned to capture additional market share and grow our leadership position as a reliable and consistent manufacturing partner for life-saving and mission critical products. We are excited by the opportunities we’re seeing in the marketplace and from our vantage point today, we maintain our expectation of delivering double digit year over year growth in fiscal 2019.”
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 accredited. IEC Electronics is headquartered in Newark, NY and also has operations in Rochester, NY and Albuquerque, NM.