MINNEAPOLIS--(BUSINESS WIRE)--Nortech Systems Incorporated (NASDAQ: NSYS) today reported net sales of $28.0 million for the second quarter ended June 30, 2012, compared with net sales of $27.8 million for the second quarter of 2011. Operating income for the second quarter of 2012 was $319,000, compared with $339,000 for the second quarter of 2011.
The company reported net income of $126,000, or $0.05 per diluted common share for the second quarter of 2012, compared with $146,000, or $0.05 per diluted common share, for the second quarter of 2011.
For the six months ended June 30, 2012, Nortech Systems reported net sales of $56.4 million, compared with $56.8 million for the same period in 2011. Operating income for the first six months of 2012 was $647,000, compared with $626,000 for the same period in 2011.
Net income for the six-month period ended June 30, 2012, was $249,000, or $0.09 per diluted common share. This compares with net income of $264,000, or $0.08 per diluted common share, reported for the same period in 2011, before a non-operating gain related to its latest acquisition. With the non-operating gain, the company reported net income of $772,000, or $0.28 per diluted common share, for the first six months of 2011.
“Our revenue results show stability while facing ongoing economic headwinds,” said Mike Degen, Nortech Systems’ president & CEO. Analysts covering the EMS industry have described the 2012 outlook as “uncertain” and “lacking direction”, without any clear, industry-defining trends. Growth forecasts are mixed, echoing the diverse signals Nortech Systems is receiving from its broad customer base.
“In the short-term, however, we’re carrying excess capacity that impacts our profitability,” Degen stated. “Strategically, we’ve positioned ourselves for long-term growth through synergistic acquisitions and efficiency improvements.” He added that Nortech remains committed to executing business fundamentals and leveraging its resources prudently in light of customer demand.
Conference Call
Nortech Systems
announces a conference call to be held at 10:00 a.m. (CDT) on Thurs.,
Aug. 9, to discuss the company’s second 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 Aug. 23, 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 398139 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, Inc. 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 June 30, | Six months ended June 30, | |||||||||||||||||||
| Unaudited | Unaudited | |||||||||||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||||||||||
| Net Sales | $ | 28,033,345 | $ | 27,796,576 | $ | 56,394,259 | $ | 56,794,773 | ||||||||||||
| Income from Operations |
318,586 |
339,134 |
647,016 |
625,796 |
||||||||||||||||
|
Non-Operating Gain |
0 | 0 | 0 | 791,615 | ||||||||||||||||
| Other Expense | (116,661 | ) | (169,040 | ) | (263,286 | ) | (308,129 | ) | ||||||||||||
|
Income before Income Taxes |
201,925 |
170,094 |
383,730 |
1,109,282 |
||||||||||||||||
|
Income Tax Expense |
76,000 | 24,000 | 135,000 | 337,000 | ||||||||||||||||
|
Net Income |
125,925 | 146,094 | 248,730 | 772,282 | ||||||||||||||||
|
Net Income Per Basic and Diluted Common Share |
$ |
0.05 |
$ |
0.05 |
$ |
0.09 |
$ |
0.28 |
||||||||||||
|
Weighted Average Number of Common Shares – Basic and Diluted |
2,742,992 |
2,742,992 |
2,742,992 |
2,742,992 |
||||||||||||||||
|
Condensed Balance Sheets |
||||||||||
| June 30, 2012 | Dec. 31, 2011 | |||||||||
| (Unaudited) | ||||||||||
| Current Assets | $ | 36,232,843 | $ | 37,297,487 | ||||||
| Property and Other Long-term Assets | 9,565,055 | 9,484,656 | ||||||||
| Total Assets | $ | 45,797,898 | $ | 46,782,143 | ||||||
| Current Liabilities | $ | 22,152,580 | $ | 25,012,055 | ||||||
| Long-term Debt | 2,890,794 | 1,264,295 | ||||||||
| Shareholders’ Equity | 20,754,524 | 20,505,793 | ||||||||
|
Total Liabilities and Shareholders’ Equity |
$ |
45,797,898 |
$ |
46,782,143 |
||||||