Nortech Systems Incorporated (NASDAQ: NSYS) today reported net
sales of $30.1 million for the second quarter ended June 30, 2017,
a four percent increase over net sales of $28.9 million for the
second quarter of 2016. For the six months ended June 30, 2017,
Nortech Systems’ net sales rose slightly to $58.5 million, up from
net sales of $57.9 million for the same period in 2016.
For the second quarter of 2017, Nortech Systems reported
operating income of $95,000, an improvement of $205,000 compared
with the prior-year period loss. For the first six months of 2017,
Nortech Systems reported operating income of $215,000, compared
with $111,000 for the same period last year.
For the second quarter of 2017, Nortech Systems reported a net
loss of $16,000, or $0.01 per diluted common share, compared with a
net loss of $180,000, or $0.07 per diluted common share, for the
same period last year. For the six months ended June 30, 2017,
Nortech Systems reported a net loss of $30,000, or $0.01 per
diluted common share. This compares with a net loss of $117,000, or
$0.04 per diluted common share, for the first six months of
2016.
“Our second quarter revenue increased both year over year and
sequentially, led again by medical sales,” said Rich Wasielewski,
Nortech Systems’ president and CEO. “We continue building on our
strategies of growing our medical business and globalization to
meet our customers’ needs regionally – in the United States, Mexico
and China.”
Nortech Systems’ improved profitability for the quarter was
mainly the result of the revenue increase and contributions from
its China operations, which is positively contributing in 2017
compared with start-up expenses last year.
During the second quarter, Nortech announced a new commercial
banking agreement with Bank of America Merrill Lynch, providing a
new credit facility of up to $21 million with an additional $20
million accordion feature. Also in the second quarter, Nortech
named Matt Mahmood its new Chief Operating Officer; he brings a
strong background in global manufacturing, metric-driven
management, continuous improvement and automation.
Conference CallNortech
Systems announces a conference call to be held at 10:00 a.m. (CDT)
on Thursday, August 10, 2017, to discuss the company’s second
quarter results. Anyone interested in participating in the
conference can access the call by dialing 866-682-6100 from within
the United States, or 862-255-5401 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. The telephone
replay will be available through August 24, 2017, by dialing
877-481-4010 (from U.S.) or 919-882-2331 (International). To access
the replay, the conference ID 19016 is required.
About Nortech Systems
IncorporatedNortech Systems Incorporated
(www.nortechsys.com), based in Maple Grove, 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, medical and
aerospace/defense. The company has operations in the U.S., Latin
America and Asia. Nortech Systems Incorporated is traded on the
NASDAQ Stock Market under the symbol NSYS.
Forward-Looking
StatementsThis 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 SIX MONTHS
ENDED JUNE 30 JUNE 30 Unaudited
Unaudited Unaudited Unaudited
2017 2016 2017 2016 Net Sales $
30,134,044 $ 28,945,135 $ 58,451,901 $ 57,895,177 Income
(Loss) From Operations 94,685 (109,936 ) 215,107 111,012 Loss on
Extinguishment of Debt (174,834 ) - (174,834 ) - Interest Expense
(141,474 ) (139,247 ) (280,996 ) (271,269 ) Loss Before
Income Taxes (221,623 ) (249,183 ) (240,723 ) (160,257 )
Income Tax Benefit (205,956 ) (69,000 ) (210,404 ) (43,000 )
Net Loss $ (15,667 ) $ (180,183 ) $ (30,319 ) $ (117,257 )
Net Loss per Basic and Diluted Common Shares $ (0.01 ) $ (0.07 ) $
(0.01 ) $ (0.04 ) Weighted Average Number of Common Shares
Outstanding: Basic 2,747,831 2,747,700 2,747,831
2,747,012 Diluted 2,747,831 2,747,700
2,747,831 2,747,012
Condensed Balance Sheets
JUNE 30 DECEMBER 31 2017
2016 Unaudited Audited Cash $ 190,691 $
268,204 Restricted Cash 346,567 - Accounts Receivable 17,099,176
17,320,784 Inventories 21,594,380 20,653,841 Other Current Assets
1,433,338 1,246,908 Property and Other Long-term Assets 15,194,053
16,026,778 Total Assets $ 55,858,205 $ 55,516,515
Accounts Payable $ 15,316,665 $ 13,825,530 Other Current
Liabilities 6,110,519 6,480,109 Line of Credit – Long-term
6,642,937 7,315,262 Long-term Debt and Other Long-term Liabilities
5,498,037 5,580,826 Shareholders’ Equity 22,290,047 22,314,788
Total Liabilities and Shareholders’ Equity $ 55,858,205 $
55,516,515
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170809006103/en/
Nortech Systems IncorporatedPaula Graff, 952-345-2244orBrookside
Communications GroupWarren Djerf,
952-920-3908warren@brookcomm.net
Nortech Systems (NASDAQ:NSYS)
Historical Stock Chart
From Aug 2024 to Sep 2024
Nortech Systems (NASDAQ:NSYS)
Historical Stock Chart
From Sep 2023 to Sep 2024