Nortech Systems Inc. (NASDAQ: NSYS) today reported net sales of
$28.3 million for the third quarter ended September 30, compared
with net sales of $29.7 million for the third quarter of 2016. For
the nine months ended September 30, Nortech’s net sales were $86.8
million, compared with $87.6 million for the same period in
2016.
Operating income for the third quarter was $284,000, compared
with $190,000 for the third quarter of 2016. For the nine-month
period, Nortech reported operating income of $500,000, compared
with $301,000 for the same period in 2016.
Nortech Systems reported net income in the third quarter of
$43,000, or $.02 per diluted common share, compared with $63,000,
or $.02 per diluted common share, for the same period last year.
For the nine months ended September 30, 2017, Nortech reported net
income of $13,000, or $0.00 per diluted common share. This compares
with a net loss of $54,000, or $0.02 per diluted common share, for
the same period in 2016.
“While our defense and industrial customers are beginning to
show positive traction, our third quarter results were impacted by
a seven percent decline in medical sales,” said Rich Wasielewski,
Nortech Systems’ president and CEO. After a long run of medical
growth for Nortech, the recent trends in the medical market, along
with program delays, have resulted in less engineering project work
and product revenue.
Industry factors negatively impacting U.S. medical technology
companies include uncertainty about the future of the federal
medical device tax, increased FDA regulations and lower venture
capital funding.
Wasielewski expects the medical sector will continue to present
challenges through the remainder of 2017 and the first half of next
year as several of Nortech’s larger OEM medical customers work down
inventory levels.
“Our diverse customer base across three core markets and our
globalization strategy remain key strengths,” Wasielewski
concluded. “We’re also supporting infrastructure, operations and
business development activities to target profitable growth.”
Enhancing Nortech’s technical resources, information systems and
“One Nortech” cooperation across facilities is aimed at providing
better customer service and an improved return to shareholders.
Conference CallNortech
Systems will hold a conference call at 10:00 a.m. (CST) on
Thursday, November 9, 2017, to discuss the company’s third quarter
results. Anyone interested in participating in the conference can
access the call by dialing 888-567-1602 from within the United
States, or 404-267-0373 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 November 23, 2017, by
dialing 877-481-4010 (from U.S.) or 919-882-2331 (International).
To access the replay, the conference PIN# 21831 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., Mexico
and China. 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 NINE MONTHS ENDED SEPTEMBER
30 SEPTEMBER 30 Unaudited
Unaudited Unaudited Unaudited
2017 2016 2017 2016 Net
Sales $ 28,310,230 $ 29,718,414 $ 86,762,131 $ 87,613,591
Income from Operations 284,413 189,764 499,520 300,776 Loss on
Extinguishment of Debt - - (174,834 ) - Interest Expense (171,699 )
(139,458 ) (452,695 ) (410,727 ) Income (Loss) Before Income
Taxes 112,714 50,306 (128,009 ) (109,951 ) Income Tax
Expense (Benefit) 69,343 (13,000 ) (141,061 ) (56,000 )
Net Income (Loss) $ 43,371 $ 63,306 $ 13,052
$ (53,951 ) Net Income (Loss) per Basic and Diluted
Common Shares $ 0.02 $ 0.02 $ 0.00 $ (0.02 )
Weighted Average Number of Common Shares Outstanding: Basic
2,747,168 2,747,832 2,747,608 2,747,288
Diluted 2,748,533 2,749,944 2,748,973
2,747,288
Condensed Balance Sheets
SEPTEMBER 302017
DECEMBER 312016
Unaudited Audited Cash $ 530,764 $ 268,204 Restricted
Cash 541,795 - Accounts Receivable 18,312,667 17,320,784
Inventories 21,068,366 20,653,841 Other Current Assets 1,367,357
1,246,908 Property and Other Long-term Assets 15,703,229
16,026,778 Total Assets $ 57,524,178 $
55,516,515 Accounts Payable $ 14,801,233 $ 13,825,530
Other Current Liabilities 6,137,207 6,480,109 Line of Credit –
Long-term 8,481,396 7,315,262 Long-term Debt and Other Long-term
Liabilities 5,770,739 5,580,826 Shareholders’ Equity 22,333,603
22,314,788 Total Liabilities and Shareholders’
Equity $ 57,524,178 $ 55,516,515
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version on businesswire.com: http://www.businesswire.com/news/home/20171108006527/en/
Nortech Systems IncorporatedPaula Graff, 952-345-2244orBrookside
Communications GroupWarren Djerf,
952-920-3908warren@brookcomm.net
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