MINNEAPOLIS--(BUSINESS WIRE)--Nortech Systems Incorporated (Nasdaq: NSYS), a leading provider of full-service electronics manufacturing services (EMS), today reported net sales of $29.1 million for the fourth quarter ended December 31, 2011, a six percent increase over net sales of $27.4 million for the fourth quarter of 2010. Operating income for the fourth quarter of 2011 was $466,432, compared with $253,248 for the fourth quarter of 2010. The company reported quarterly net income of $234,783, or $0.09 per diluted common share, in the fourth quarter of 2011, compared with $137,051, or $0.05 per diluted common share, for the same period of 2010.
For the fiscal year ended December 31, 2011, the company reported net sales of $114.2 million, up 14 percent from $99.8 million reported for the 2010 fiscal year. Nortech Systems reported operating income of $1.5 million for fiscal 2011, compared with $1.2 million for the 2010 fiscal year. Net income for fiscal 2011 was $1.2 million, or $0.43 per diluted common share. This includes a non-operating gain, net of tax, of $528,007, or $0.19 per diluted common share, from the January 2011 acquisition of certain assets associated with the EMS operations of Winland Electronics, Inc. For fiscal 2010, net income was $506,766, or $0.18 per diluted common share.
“Our 2011 fiscal year finished with solid momentum,” said Mike Degen, Nortech Systems’ president and CEO. “Fourth quarter results, in particular, benefited from sales attributed to our Winland acquisition, a favorable product mix and continued cost improvements in our manufacturing operations and supply chain.
“We’re pleased with the progress made in the second half of the year on the continued integration of our two most recent acquisitions,” continued Degen. “The life sciences/medical products facility is beginning to gain traction while our newest EMS contract manufacturing facility retained and expanded its customer base.”
Degen said Nortech’s organic business had mixed results in 2011. Industrial customers were impacted by softness in the semiconductor market and the sluggish economy. Medical OEM customers showed more resilience to economic pressures and Nortech’s defense-sector demand stabilized.
At the start of the 2012, Nortech Systems realigned its sales and marketing, engineering and related support functions to better serve customers, capitalize on recent acquisitions and foster broader collaboration across the company. Nortech is committed to delivering excellence and customer satisfaction through technical expertise, supply chain management skills and advanced business processes.
In conclusion, Degen said Nortech Systems’ objective is to continue outpacing the U.S. EMS industry’s revenue growth through business development efforts with existing and new customers in the company’s three primary markets – industrial, medical and defense.
Conference Call
Nortech Systems
announces a conference call to be held at 10:00 a.m. (CST) on Thursday,
March 8, 2012, to discuss the company’s fourth quarter results. Anyone
interested in participating in the conference can access the call by
dialing 877-407-8031 from within the United States, or 201-689-8031 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 March 22, 2012, by dialing 877-660-6853 (from
U.S.) or 201-612-7415 (International). To access the replay, the account
number 286 and conference ID 389323 are both 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., Asia 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 Operations | |||||||||||||||||
| Three months ended Dec. 31, | Twelve months ended Dec. 31, | ||||||||||||||||
| Unaudited | Audited | ||||||||||||||||
| 2011 | 2010 | 2011 | 2010 | ||||||||||||||
|
Net Sales |
$ | 29,123,480 | $ | 27,426,795 | $ | 114,236,411 | $ | 99,820,069 | |||||||||
| Income from Operations | 466,432 |
253,248 |
1,512,366 |
1,230,191 | |||||||||||||
|
Income before Income Taxes |
360,783 |
114,051 |
1,750,930 | 881,766 | |||||||||||||
|
Income Tax Expense (Benefit) |
126,000 |
(23,000 |
) |
561,000 |
375,000 |
||||||||||||
|
Net Income |
234,783 |
137,051 |
1,189,930 |
506,766 |
|||||||||||||
|
Net Income Per Basic Common Share |
$ |
0.09 |
$ |
0.05 |
$ |
0.43 |
$ |
0.18 |
|||||||||
|
Weighted Average Number of Common Shares – Basic |
2,742,992 |
2,742,992 |
2,742,992 |
2,742,389 |
|||||||||||||
| Net Income Per Diluted Common Share |
$ |
0.09 |
$ |
0.05 |
$ |
0.43 |
$ |
0.18 |
|||||||||
|
Weighted Average Number of Common Shares – Diluted |
2,742,992 |
2,742,992 |
2,742,992 |
2,742,389 |
|||||||||||||
|
Condensed Balance Sheets – Audited |
||||||||
| Dec. 31, 2011 | Dec. 31, 2010 | |||||||
| Current Assets | $ | 37,297,487 | $ | 33,467,996 | ||||
| Property and Other Long-Term Assets | 9,484,656 | 8,092,928 | ||||||
| Total Assets | $ | 46,782,143 | $ | 41,560,924 | ||||
| Current Liabilities | $ | 25,012,055 | $ | 20,403,551 | ||||
| Long-Term Liabilities | 1,264,295 | 1,868,554 | ||||||
| Shareholders’ Equity | 20,505,793 | 19,288,819 | ||||||
|
Total Liabilities and Shareholders’ Equity |
$ |
46,782,143 |
$ |
41,560,924 |
||||