NEWARK, NY--(Marketwire - April 23, 2009) - IEC Electronics Corp. (
OTCBB:
IECE) announced
its results for the second quarter of fiscal 2009, ending March 27, 2009.
The Company reported revenue of $16,335,000 for the quarter, operating
income of $1,143,000 and net income of $2,619,000 or $0.29 per share. This
compares to revenue of $11,940,000, operating income of $385,000 and net
income of $673,000 or $0.07 per share for the quarter ending March 28,
2008. IEC had revenue of $32,192,000 for the first six months of fiscal
2009, operating income of $2,090,000 and a net income of $3,150,000 or $.34
per share. This compares to revenue of $23,100,000, operating income of
$777,000 for the first six months of fiscal 2008, and a net profit of
$1,093,000 or $.12 per share.
W. Barry Gilbert, Chairman of the Board and CEO, stated, "This was a good
quarter. We are weathering the economic downturn fairly well. All our
important financial margins have improved. Our gross margin improved to
16.0% as compared with our second quarter's gross margin of 11.6% for Q2
2008. Operating income margin was 7.0% of sales versus 3.2% for the same
period last year. Clearly, a small portion of the accretion comes from the
Val-U-Tech wire and cable acquisition last June. Our strategy of entering
that business has enabled us to support our traditional contract
manufacturing customers on an ever-expanding basis. We intend to change
the name of the operation to IEC Electronics Wire and Cable Inc. In March,
we engaged Mooreland Partners LLC to help us with a 'buy-side' engagement
looking for companies possessing other synergistic capabilities.
"Moreover, we are pleased to report that our core contract manufacturing
business continues to improve. The investments made last year are starting
to pay off in manufacturing efficiencies. Some of the efficiency
improvement in this period is also a result of a more favorable product
mix, which may or may not continue in the near future. However, we expect
our gross margin as a percent of sales to normalize in a range between
14.5% and 15.5%, which is one of the highest in the industry.
"The recent unemployment figures are a stark reminder of the condition of
this economy. We do not make a practice of reporting our backlog during
the year, nevertheless it is holding up reasonably well despite continued
softness, previously reported, associated with a couple of customers who
are continuing to experience difficulties. Our sector performance has
shifted somewhat. The military sector remains strong and we believe it
will be so after the proposed government budget adjustments. It has
increased to 48% of sales for the first six months of fiscal 2009 as
compared to 39% of sales for fiscal 2008, the last time we presented sector
information. Our industrial sector has declined slightly to 28% of sales
for the first six months of this year as compared to 30% for the fiscal
year end 2008. The aerospace sector has remained just over 10% of the
Company's sales for the first six months as compared to fiscal year end
2008. We still expect continued revenue growth for the balance of the year
as we continue to focus on our core military, aerospace, industrial and
medical market sectors.
"In February, our shareholders authorized the Board, at its discretion, to
effect a reverse stock split at anytime before the 2010 Annual Meeting in
order to support our efforts to secure re-listing of our common stock on a
national exchange. We are not rushing to implement the reverse split in
this turbulent market; however we have started to prepare the paperwork for
our listing application. In summary, the Company continues to move in the
right direction and we are confident that we are creating future value for
our shareholders and opportunity for our employees."
As a full service EMS provider, IEC is AS9100 and ISO-9001:2000 registered,
and a NSA approved supplier under the COMSEC standard. The Company offers
its customers a wide range of services including design, prototype and high
reliability printed circuit board assembly, material procurement and
control, manufacturing and test engineering support, and systems build.
Information regarding IEC's second quarter 2009 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,
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 2008 Annual Report on Form
10-K and in other filings with the Securities and Exchange Commission.
IEC ELECTRONICS CORP - CONSOLIDATED
BALANCE SHEET
MAR 27, 2009 AND SEP 30, 2008
(In Thousands)
MAR 27, 2009 SEP 30, 2008
ASSETS
CURRENT ASSETS
Cash 0 0
Accounts Receivable 9,771 10,345
Inventories 7,364 6,230
Deferred Income Taxes 1,908 1,908
Other Current Assets 162 61
---------- ----------
Total Current Assets 19,205 18,544
---------- ----------
NET FIXED ASSETS 1,122 853
NON-CURRENT ASSETS
Deferred Income Taxes 14,042 14,727
Other Non-Current Assets 54 60
----------- ----------
TOTAL ASSETS 34,423 34,184
=========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Short Term Borrowings 1,072 1,098
Accounts Payable 6,163 6,125
Accrued Payroll and Related Taxes 611 808
Other Accrued Expenses 483 603
Other Current Liabilities 708 664
---------- ----------
Total Current Liabilities 9,037 9,298
---------- ----------
LONG TERM DEBT 7,148 8,910
---------- ----------
TOTAL LIABILITIES 16,185 18,208
SHAREHOLDERS' EQUITY
Authorized - 50,000,000 shares
Issued 9,514,049, Outstanding 8,501,176
Common stock, par value $.01 per share 95 93
Treasury Shares at Cost - 1,012,873 shares (1,413) (223)
Additional Paid-in Capital 40,423 40,124
Retained Earnings (20,867) (24,018)
---------- ----------
TOTAL SHAREHOLDERS' EQUITY 18,238 15,976
---------- ----------
TOTAL LIABILITIES & EQUITY 34,423 34,184
========== ==========
IEC ELECTRONICS CORP - CONSOLIDATED
STATEMENT OF INCOME
FOR QUARTER END & YTD MAR 27, 2009 AND MAR 28, 2008
(In Thousands)
ACTUAL PRIOR ACTUAL PRIOR
QUARTER QUARTER YTD YTD
MAR 27, MAR 28, MAR 27, MAR 28,
2009 2008 2009 2008
Sales 16,335 11,940 32,192 23,100
Cost of Sales 13,728 10,557 27,351 20,571
-------- -------- -------- --------
Gross Profit 2,607 1,383 4,841 2,529
Less: Operating Expenses
Selling & G&A 1,464 998 2,751 1,752
Restructuring 0 0 0 0
-------- -------- -------- --------
Total Operating Expenses 1,464 998 2,751 1,752
-------- -------- -------- --------
Operating Profit 1,143 385 2,090 777
Interest and Financing Expense 91 84 215 176
(Gain)/Loss on Disposal of
Fixed Assets (5) (2) (5) (2)
Other Expense/(Income) (61) 0 (61) 0
-------- -------- -------- --------
Net Income before Income Taxes 1,118 303 1,941 603
Provision for /(benefit from)
Income Tax (1,501) (370) (1,209) (490)
-------- -------- -------- --------
Net Income 2,619 673 3,150 1,093
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Contact Information: Contact:
Heather Keenan
IEC Electronics Corp.
(315) 332-4262
John Nesbett
Institutional Marketing Services
(203) 972-9200