NEWARK, NY--(Marketwire - January 28, 2010) - IEC Electronics Corp. (
NYSE Amex:
IEC) announced
its results for the first quarter of fiscal 2010 ending December 25, 2009.
On an unaudited basis, the Company reported revenue of $18.1 million for
the quarter, operating income of $1,313,000 and net income of $753,000 or
$0.08 per share. This compares to revenue of $15.9 million, operating
income of $947,000 and net income of $532,000 or $0.06 per share for the
quarter ending December 26, 2008.
W. Barry Gilbert, Chairman of the Board and CEO, stated, "We had a busy
quarter. As previously announced, we acquired General Technology
Corporation (GTC), from Crane Co. on December 16th near the very end of our
fiscal first quarter. Accordingly, the acquisition had almost no impact on
our financial results. Our operating margins increased from the previous
year but were softer than Q4 of fiscal 2009. Q1 is always a challenge as
we must assist our customers in maximizing their year end results and this
often conflicts with the initially scheduled mix of products. Operating
income was 7.2% of sales versus 6% for the same period last year.
Although, this is a strong result in its own right, it is lower than what
we have come to expect because, despite our manufacturing efficiency,
changes to product mix, as mentioned above, were a challenge.
"Our customer base continues to expand and during the quarter, we added a
new customer in the medical sector. We expect continued revenue growth
during the balance of the year. Sales are likely to increase from $16.3
million in fiscal Q2 '09 to approximately $25 million in fiscal Q2 '10.
While much of the increase will be related to the GTC acquisition, over 20%
of the balance is organic growth. We are excited about the prospects
associated with the GTC acquisition and our initial impressions after a
short period of time are positive. GTC expands our reach in the military
and defense markets with their ability to manage legacy programs, an
important niche that we are pleased to add to our capabilities. While we
will absorb some normal integration costs, they are more than offset by the
fact there were no investment banking costs associated with the
transaction.
"One final thought: Some of our customers continue to face significant
difficulties in this weak economy. However others continue to expand, and
in turn expand their commercial activity with us. This is attributable to
increases in their end market activity and also endorses our performance as
it appears that we are taking market share from others. We view this as
recognition of our continuing commitment to serving our customers as
closely to 'Absolutely, Positively Perfect and On Time(SM)' as we can."
As a full service EMS provider, IEC is AS9100, ISO-9001:2000 and ISO 13485
registered, and a NSA approved supplier under the COMSEC standard. The
Company offers its customers a wide range of services including design,
prototype and volume printed circuit board assembly, material procurement
and control, manufacturing and test engineering support, systems build,
final packaging and distribution. Information regarding IEC's first
quarter 2010 results can be found on its web site at
www.iec-electronics.com.
The foregoing, including any discussion regarding the Company's future
prospects, contains certain forward-looking statements that involve risks
and uncertainties, including uncertainties associated with economic
conditions in the electronics industry, particularly in the principal
industry sectors served by the Company, changes in customer requirements
and in the volume of sales to principal customers, the ability of the
Company to assimilate acquired businesses and to achieve the anticipated
benefits of such acquisitions, competition and technological change, the
ability of the Company to control manufacturing and operating costs and
satisfactory relationships with vendors.
The Company's actual results of operations may differ significantly from
those contemplated by any forward-looking statements as a result of these
and other factors, including factors set forth in the Company's 2009 Annual
Report on Form 10-K and in other filings with the Securities and Exchange
Commission.
IEC ELECTRONICS CORP - CONSOLIDATED
BALANCE SHEET
DEC 25, 2009 AND SEP 30, 2009
(In Thousands)
DEC 25, 2009 SEP 30, 2009
ASSETS
CURRENT ASSETS
Cash 0 0
Accounts Receivable 15,242 10,354
Inventories 11,188 6,491
Deferred Income Taxes 2,050 2,050
Other Current Assets 193 110
---------- ----------
Total Current Assets 28,673 19,005
---------- ----------
NET FIXED ASSETS 11,118 2,391
NON-CURRENT ASSETS
Goodwill 507 0
Deferred Income Taxes 12,620 13,026
Other Non-Current Assets 117 47
----------- ----------
TOTAL ASSETS 53,035 34,469
=========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Short Term Borrowings 2,414 1,147
Accounts Payable 7,299 4,183
Accrued Payroll and Related Taxes 1,313 1,564
Other Accrued Expenses 1,219 531
Other Current Liabilities 413 190
---------- ----------
Total Current Liabilities 12,658 7,615
---------- ----------
LONG TERM DEBT 19,301 6,600
---------- ----------
TOTAL LIABILITIES 31,959 14,215
SHAREHOLDERS' EQUITY
Authorized - 50,000,000 shares
Issued - 9,833,930, Outstanding -
8,821,057
Common stock, par value $.01 per share 98 97
Treasury Shares at Cost - 1,012,873
shares (1,413) (1,413)
Additional Paid-in Capital 40,699 40,632
Retained Earnings (18,308) (19,062)
---------- ----------
TOTAL SHAREHOLDERS' EQUITY 21,076 20,254
---------- ----------
TOTAL LIABILITIES & EQUITY 53,035 34,469
========== ==========
IEC ELECTRONICS CORP - CONSOLIDATED
STATEMENT OF INCOME
FOR QUARTER END & YTD DEC 25, 2009 AND DEC 26, 2008
(In Thousands)
ACTUAL PRIOR ACTUAL PRIOR
QUARTER QUARTER YTD YTD
DEC 25, 2009 DEC 26, 2008 DEC 25, 2009 DEC 26, 2008
Sales 18,060 15,857 18,060 15,857
Cost of Sales 15,247 13,623 15,247 13,623
------------ ------------ ------------ ------------
Gross Profit 2,813 2,234 2,813 2,234
Less: Operating
Expenses
Selling & G&A 1,500 1,287 1,500 1,287
Restructuring 0 0 0 0
------------ ------------ ------------ ------------
Total Operating
Expenses 1,500 1,287 1,500 1,287
------------ ------------ ------------ ------------
Operating Profit 1,313 947 1,313 947
Interest and
Financing Expense 95 124 95 124
Other Expense/(Income) 59 0 59 0
------------ ------------ ------------ ------------
Net Income before
Income Taxes 1,159 823 1,159 823
Provision for /
(benefit from)
Income Tax 406 291 406 291
------------ ------------ ------------ ------------
Net Income 753 532 753 532
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Contact Information: Contact:
Heather Keenan
IEC Electronics Corp.
(315) 332-4262
John Nesbett/Jennifer Belodeau
Institutional Marketing Services
(203) 972-9200