SOURCE: IEC Electronics

IEC Electronics

January 28, 2010 08:30 ET

IEC Announces Solid First Quarter for Fiscal 2010

Compared to Q1 of 2009: Revenue Increased 14%; Gross Profit Was 15.6% as Compared 14.1%; Operating Income Increased by More Than 39%

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
                     ============  ============  ============  ============

Contact Information

  • Contact:
    Heather Keenan
    IEC Electronics Corp.
    (315) 332-4262
    Email Contact

    John Nesbett/Jennifer Belodeau
    Institutional Marketing Services
    (203) 972-9200
    Email Contact