IEC Announces Strong First Quarter for Fiscal 2011


NEWARK, NY--(Marketwire - February 3, 2011) - IEC Electronics Corp. (NYSE Amex: IEC)

Compared to Q1 2010...

-- Revenue increased by more than 50%

-- Operating Income increased by more than 45%

-- EBITDA increased by more than 70%

IEC Electronics Corp. (NYSE Amex: IEC) announced its unaudited results for the first quarter of fiscal 2011 ending December 31, 2010.

The Company reported revenue of $28.7 million for the quarter, operating income of $1,963,000 and net income of $1,049,000 or $0.11 per diluted share. This compares to revenue in the prior year first quarter of $18.1 million, operating income of $1,313,000 and net income of $754,000 or $.08 per diluted share.

W. Barry Gilbert, Chairman of the Board and CEO, stated, "As previously announced, we acquired Southern California Braiding, Inc. ("SCB") on December 17, 2010. Between December 17 and our quarter end, we incurred approximately $70,000 of transitional start-up expenses. The more time we spend with SCB the more excited we become with the prospects for this acquisition and cross selling opportunities. As it was so near the end of the reporting period, the acquisition had almost no impact on our first quarter results. We enjoyed a strong quarter with continued sales, earnings and cash flow growth. During the quarter, we also experienced some challenges introducing a number of new projects while also managing an unusual level of product mix variations, resulting in some temporary inefficiencies amounting to approximately $200,000. With these first quarter inefficiencies behind us we remain confident in our outlook for 2011."

For the first quarter of 2011, IEC reported earnings before interest, taxes, depreciation and amortization (EBITDA) of $2.4 million or $0.25 per diluted share, compared to EBITDA of $1.4 million or $0.15 per diluted share in the first quarter of 2010. As mentioned in the past, the Company views EBITDA as a useful measure of its operating performance because it eliminates the aberrations produced by its net operating loss carryforward (NOL), and enables the investment community to better evaluate long-term profitability and cash flow being generated by the Company. IEC's remaining NOL for federal and state taxes is approximately $33.2 million.

Gilbert also observed, "Some of our customers who were experiencing difficulty during the recession have begun to recover. Their commercial outlook is substantially brighter and we expect to reap the benefit of that growth, in addition to the market share gains we have made. We believe our increased market share is a result of the continued high level of commitment our employees have to deliver for our customers... Absolutely, Positively Perfect and On Time(SM)."

Conference Call

IEC will host a conference call with investors at 10:00 a.m. Eastern time today, February 3, 2011 to discuss its financial results for the quarter ended December 31, 2010. The call may be accessed in the U.S. and Canada by dialing toll-free 1-877-407-9210. International callers may access the call by dialing 1-201-689-8049. To access a live webcast of the conference call, log onto the IEC website at http://www.iec-electronics.com or http://www.InvestorCalendar.com.

A replay of the teleconference will be available for 30 days after the call and may be accessed domestically by dialing 1-877-660-6853 and international callers may dial 1-201-612-7415. Callers must enter account number 286 and conference number 366229.

About IEC Electronics

IEC Electronics Corporation is a premier provider of electronic manufacturing services ("EMS") to advanced technology companies primarily in the military and aerospace, medical, industrial and computing sectors. The Company specializes in the custom manufacture of high reliability, complex circuit cards, system level assemblies, a wide array of custom cable and wire harness assemblies, and precision sheet metal products. As a full service EMS provider, IEC is a world-class ISO 9001:2008, AS9100 and ISO13485 certified company. The AS9100 certification enables IEC to serve the military and commercial aerospace markets. The ISO13485 certification supports the quality requirements of medical device markets. The Company is also ITAR registered and NSA approved under the COMSEC standard. IEC Electronics is headquartered in Newark, NY (outside of Rochester) and also has operations in Victor, NY, Rochester, NY, and Albuquerque, NM and Bell Gardens, CA. Additional information about IEC 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, competition and technological change, the ability of the Company to control manufacturing and operating costs, the ability of the Company to develop and maintain satisfactory relationships with vendors, and the ability of the Company to efficiently integrate acquired companies into its business. 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 2010 Annual Report on Form 10-K and in other filings with the Securities and Exchange Commission.


                             IEC ELECTRONICS CORP - CONSOLIDATED
                                          BALANCE SHEET
                                   DEC 31, 2010 AND SEP 30, 2010
                                         (In Thousands)

                                         DEC 31, 2010         SEP 30, 2010
ASSETS

CURRENT ASSETS
  Cash                                              0                    0
  Accounts Receivable                          18,855               16,315
  Inventories                                  18,841               12,068
  Deferred Income Taxes                         4,329                3,359
  Other Current Assets                          1,156                  234
                                           ----------           ----------
    Total Current Assets                       43,181               31,976
                                           ----------           ----------

NET FIXED ASSETS                               14,832               13,098

NON-CURRENT ASSETS
  Goodwill                                     21,147                   58
  Intangible Assets                               420                  331
  Deferred Income Taxes                         8,679               10,113
  Other Non-Current Assets                        221                  106
                                          -----------           ----------
TOTAL ASSETS                                   88,480               55,682
                                          ===========           ==========

LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES
  Short Term Borrowings                         6,905                2,899
  Accounts Payable                             10,105                8,145
  Accrued Payroll and Related Taxes             1,591                2,279
  Other Accrued Expenses                        1,186                  941
  Other Current Liabilities                     1,093                    0
                                           ----------           ----------
    Total Current Liabilities                  20,880               14,264
                                           ----------           ----------

LONG TERM DEBT                                 40,392               15,999
                                           ----------           ----------
TOTAL LIABILITIES                              61,272               30,263

SHAREHOLDER'S EQUITY
   Authorized - 50,000,000 shares
   Issued - 10,359,057, Outstanding - 9,346,184
  Common stock, par value $.01 per share          103                  101
  Treasury Shares at Cost - 1,012,873 shares   (1,413)              (1,413)
  Additional Paid-in Capital                   41,876               41,138
  Retained Earnings                           (13,358)             (14,407)
                                           ----------           ----------
TOTAL SHAREHOLDER'S EQUITY                     27,208               25,419
                                           ----------           ----------

TOTAL LIABILITIES & EQUITY                     88,480               55,682
                                           ==========           ==========



                             IEC ELECTRONICS CORP - CONSOLIDATED
                                     STATEMENT OF INCOME
                       FOR QUARTER END & YTD DEC 31, 2010 AND DEC 25, 2009
                                        (In Thousands)

                        ACTUAL        PRIOR         ACTUAL        PRIOR
                       QUARTER       QUARTER         YTD           YTD
                     DEC 31, 2010  DEC 25, 2009  DEC 31, 2010  DEC 25, 2009

Sales                    28,644        18,060        28,644       18,060
Cost of Sales            24,061        15,247        24,061       15,247
                       --------      --------      --------     --------
Gross Profit              4,583         2,813         4,583        2,813

Less: Operating
 Expenses
  Selling & G&A           2,620         1,500         2,620        1,500
  Other                       0             0             0            0
                       --------      --------      --------     --------
Total Operating
 Expenses                 2,620         1,500         2,620        1,500
                       --------      --------      --------     --------

Operating Profit          1,963         1,313         1,963        1,313


Interest and Financing
 Expense                    244            95           244           95
Other Expense/(Income)       13            58            13           58
                       --------      --------      --------     --------
Net Income before
 Income Taxes             1,706         1,160         1,706        1,160 


  Provision for /
  (benefit from)Income
   Tax                      657           406           657          406
                       --------      --------      --------     --------

Net Income                1,049           754         1,049          754
                       ========      ========      ========     ========



Basic Earnings
 Per Share                $0.11         $0.09         $0.11        $0.09
Diluted Earnings
 Per Share                $0.11         $0.08         $0.11        $0.08


Basic Shares          9,224,877     8,828,604     9,224,877    8,828,604
Diluted Shares        9,766,022     9,526,342     9,766,022    9,526,342




                             IEC ELECTRONICS CORP - CONSOLIDATED
                            RECONCILIATION OF NET INCOME TO EBITDA
                        FOR QUARTER END & YTD DEC 31, 2010 AND DEC 25, 2009
                                         (In Thousands)

                        ACTUAL         PRIOR       ACTUAL         PRIOR
                        QUARTER       QUARTER        YTD           YTD
                     DEC 31, 2010  DEC 25, 2009  DEC 31, 2010  DEC 25, 2009

Net Income                1,049           754         1,049          754

Provision for /
 (benefit from)
 Income Tax                 657           406           657          406

Depreciation and
 Amortization Expense       489           137           489          137

Net Interest Expense /
 (Income)                   244            95           244           95
                       --------      --------      --------     --------
EBITDA                    2,439         1,392         2,439        1,392
                       --------      --------      --------     --------


Basic Earnings
 Per Share                $0.26         $0.16         $0.26        $0.16
Diluted Earnings
 Per Share                $0.25         $0.15         $0.25        $0.15


Basic Shares          9,224,877     8,828,604     9,224,877    8,828,408
Diluted Shares        9,766,022     9,526,342     9,766,022    9,526,342

Contact Information: Contact: Susan E. Topel-Samek Vice President & CFO IEC Electronics Corp. (315)332-4308 John Nesbett or Jennifer Belodeau Institutional Marketing Services (203)972-9200