HIALEAH, Fla., Nov. 14, 2007 (PRIME NEWSWIRE) -- Simclar, Inc. (Nasdaq:SIMC), a multi-plant electronics contract manufacturer, reported its results for the three months ended September 30, 2007.
Revenue for the three months ended September 30, 2007 was $33,149,660, up 8% from $30,653,658 in the same period in 2006. The growth was attributable to additional business from existing and new customers.
Pre-tax income for the three months ended September 30, 2007 was $626,568 compared to $1,032,137 for the same period in 2006. Escalating losses in our North Carolina operations, poor financial results at our Dayton, OH facility, and raw material shortages that created inefficiencies and expedite charges were the main factors that contributed to the decline in earnings.
Net income for the three months ended September 30, 2007 was $415,330 or $0.07 per share, compared to $617,868 or $0.10 per share in the same period in 2006.
Sam Russell, Chairman, commented, "The results for the third quarter were disappointing and we have quickly taken corrective actions. We recently announced the rationalization of our North Carolina sheet metal operations which are being transferred to our facility in Mexico to take advantage of the lower costs and integration capabilities with PCBA, Cable Harness, and High-Level Assembly. We have also changed the General Manager at our Dayton, OH plant as a result of that facility's poor trading performance. Material shortages had a particularly adverse affect on our backplane assembly operations, however, we are seeing improvements and, as of now, we do not anticipate any further disruptions from our material suppliers."
Simclar, Inc., with five North American manufacturing locations, and two regional Sales/NPI locations has been engaged in contract manufacturing of electronic and electro-mechanical products for OEMs for 31 years.
Statements in this news release, which relate to other than strictly historical facts, such as statements about the Company's plans and strategies, expectations for future financial performance, and markets for the Company's products and services are forward-looking statements. The words "believe," "expect," "anticipate," "estimate," "project," and similar expressions identify forward-looking statements that speak only as of the date hereof. Investors are cautioned that such statements involve risks and uncertainties that could cause actual results to differ materially from historical or anticipated results due to many factors including, but not limited to, the Company's customer concentration, debt covenants, competition, and other risks detailed in the Company's most recent Annual Report on Form 10-K and other Securities and Exchange Commission filings. The Company undertakes no obligation to publicly update or revise any forward-looking statements.
Visit Simclar, Inc. at its website, www.simclar.com for more information about the Company.