Nortech Systems Reports First Quarter Results
Nortech Systems Reports First Quarter Results
MINNEAPOLIS--(BUSINESS WIRE)-- Nortech Systems Incorporated (NAS: NSYS) today reported net sales of $25.9 million for the first quarter ended March 31, 2013, compared with $25.0 million in the prior quarter and $28.4 million in the first quarter of 2012.
Income from operations for the first quarter of 2013 was $224,000 after an impairment charge of $74,000 on a building being held for sale. This compares with $328,000 for the same period in 2012. Net income for the first quarter of 2013 was $141,000, or $0.05 per diluted common share, and was favorably impacted by the reinstatement of the research and development tax credits. This compares with $123,000, or $0.04 per diluted common share, reported for the same period in 2012.
"Our ongoing productivity improvements, including initiatives in automation and lean manufacturing, helped drive our profitability in the quarter as we saw our gross profit percentage increase 190 basis points versus the first quarter of 2012," said Mike Degen, Nortech Systems' chief executive officer.
"We're continuing to watch costs and manage expenses carefully while waiting for further strengthening in the domestic and global economies," Degen added. He noted that the company's 90-day backlog increased 11 percent during the quarter, led by defense and medical customers. He considers this positive indicator - the first double-digit backlog increase in more than 18 months - as a reason for optimism for fiscal 2013.
"Our continued investments in business development and operations position us to deliver stronger results when demand improves and we can fully utilize our capacity," Degen concluded.
Conference Call
Nortech Systems announces a conference call to be held at 10:00 a.m. (CDT) on Thursday, May 9, to discuss the company's first quarter results. Anyone interested in participating in the conference can access the call by dialing 877-407-0782 from within the United States, or 201-689-8567 if calling internationally. An audio webcast and replay of this conference call can be accessed at the investor relations portion of Nortech Systems' website at www.nortechsys.com or at www.investorcalendar.com. A podcast (MP3 download) will also be available. The telephone replay will be available through May 23, 2013, by dialing 877-660-6853 (from U.S.) or 201-612-7415 (International). To access the replay, the conference ID 413371 is required.
About Nortech Systems Incorporated
Nortech Systems Incorporated (www.nortechsys.com), based in Wayzata, Minn., is a full-service electronics manufacturing services (EMS) provider of wire and cable assemblies, printed circuit board assemblies, and higher-level complete box build assemblies for a wide range of industries. Markets served include industrial equipment, aerospace/defense and medical. The company has manufacturing capabilities and operating partners in the U.S. and Latin America. Nortech Systems Incorporated is traded on the NASDAQ Stock Market under the symbol NSYS.
Forward-Looking Statements
This press release contains forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. While this release is based on management's best judgment and current expectations, actual results may differ and involve a number of risks and uncertainties. Important factors that could cause actual results to differ materially from the forward-looking statements include, without limitation: volatility in market conditions which may affect market supply of and demand for the company's products; increased competition; changes in the reliability and efficiency of operating facilities or those of third parties; risks related to availability of labor; commodity and energy cost instability; general economic, financial and business conditions that could affect the company's financial condition and results of operations; as well as risk factors listed from time to time in the company's filings with the SEC.
Condensed Statements of Income | ||||||||||
Three months ended Mar. 31, | ||||||||||
Unaudited | ||||||||||
2013 | 2012 | |||||||||
Net Sales | $ | 25,925,401 | $ | 28,360,914 | ||||||
Income from Operations | 223,622 | 328,430 | ||||||||
Other Expense | (103,533 | ) | (146,625 | ) | ||||||
Income before Income Taxes | 120,089 | 181,805 | ||||||||
Income Tax (Benefit) Expense | (21,000 | ) | 59,000 | |||||||
Net Income | $ | 141,089 | $ | 122,805 | ||||||
Net Income Per Basic and Diluted Common Share | $ | 0.05 | $ | 0.04 | ||||||
Weighted Average Number of Common Shares - Basic and Diluted | 2,742,992 | 2,742,992 | ||||||||
Condensed Balance Sheets | ||||||||
March 31, 2013 | Dec. 31, 2012 | |||||||
(Unaudited) | ||||||||
Current Assets | $ | 34,731,651 | $ | 32,691,371 | ||||
Property and Other Long-term Assets | 11,405,869 | 11,823,528 | ||||||
Total Assets | $ | 46,137,520 | $ | 44,514,899 | ||||
Current Liabilities | $ | 20,199,426 | $ | 20,131,441 | ||||
Long-term Debt | 4,657,993 | 3,248,227 | ||||||
Shareholders' Equity | 21,280,101 | 21,135,231 | ||||||
Total Liabilities and Shareholders' Equity | $ | 46,137,520 | $ | 44,514,899 | ||||
Nortech Systems Incorporated
Richard Wasielewski, 952-345-2244
or
Brookside Communications Group
Warren Djerf, 952-920-3908
warren@brookcomm.net
KEYWORDS: United States North America Minnesota
INDUSTRY KEYWORDS:
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