IECE reports Q1 $.06 vs $.05
Compared to Q1 of 2008:
§ Revenue increased 42%
§ Gross profit was 14.1 % as compared 10.3 %
§ Operating income increased by more than 140%
Newark, NY – January 19, 2009 – IEC Electronics Corp. (IECE.OB) announced its results for the first quarter of fiscal 2009, ending December 26, 2008.
On an unaudited basis, the Company reported revenue of $15.8 million for the quarter, operating income of $946,000 and net income of $532,000 or $0.06 per share. This compares with revenue of $11.2 million, operating income of $393,000 and net income of $420,000 or $0.05 per share for the quarter ending December 28, 2007. The comparable quarter’s results for the prior year were favorably impacted by a $120,000 deferred tax charge; Pro forma net income without the deferred tax charge would have been $300,000 or $0.03 per share.
W. Barry Gilbert, Chairman of the Board and CEO, stated, “We had a good quarter with our operating margins increasing across the board. Our gross margin improved to 14.1% as compared with our first quarter’s gross margin of 10.3% for Q1 2008. Operating income was 6% of sales versus 3.6% for the same period last year. While some of the improvement resulted from product mix a portion of the change was clearly due to improved manufacturing efficiency. Our customer base continues to expand. During the quarter, we added a new customer in the Aerospace sector.
“We expect continued revenue growth during the balance of the year, and expect to further intensify our market focus in the medical technology sector in the coming quarters. As we all know, the economy is in a deep recession. While some of our customers are indeed experiencing significant difficulties we have others that continue to expand their commercial activity with us. Partly, this is attributable to increases in their end market activity but a portion is due to our superior performance as it appears that we are taking market share from others. We view this as recognition of our continuing commitment to serving them ‘Absolutely, Positively Perfect and On Time (sm) ’.”
“We have created a stronger Company, and believe the time may be near for applying to re-list our common stock on the NASDAQ Capital Market. A NASDAQ listing will help attract a broader range of investors and will be in our long term best interests. We believe we meet all of the listing requirements but for the $4.00 per share minimum bid price. At the forthcoming meeting of shareholders, we are seeking shareholder approval to execute, a one, up to four reverse split at any time before the 2010 shareholders’ meeting, at the discretion of the Board. That reverse split would enable us to meet the minimum bid price. Unlike the typical company seeking a reverse split in an effort to maintain its listing on NASDAQ while its operating performance is deteriorating, our operating performance has been accelerating. We continue to move in the right direction and we are confident that we are creating future value for our shareholders and opportunity for our employees.”
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As a full service EMS provider, AS9100 and IEC is ISO-9001:2000 registered, and a NSA approved supplier under the COMSEC standard. The Company offers its customers a wide range of services including design, prototype and volume printed circuit board assembly, material procurement and control, manufacturing and test engineering support, systems build, final packaging and distribution. Information regarding IEC’s first quarter 2009 results can be found on its web site at www.iec-electronics.com/finance/Q1-2009release.html
The foregoing, including any discussion regarding the Company's future prospects, contains certain forward-looking statements that involve risks and uncertainties, including uncertainties associated with economic conditions in the electronics industry, particularly in the principal industry sectors served by the Company, changes in customer requirements and in the volume of sales to principal customers, the ability of the Company to assimilate acquired businesses and to achieve the anticipated benefits of such acquisitions, competition and technological change, the ability of the Company to control manufacturing and operating costs, satisfactory relationships with vendors. The Company's actual results of operations may differ significantly from those contemplated by any forward-looking statements as a result of these and other factors, including factors set forth in the Company's 2008 Annual Report on Form 10-K and in other filings with the Securities and Exchange Commission.
Contact: Heather Keenan John Nesbett
IEC Electronics Corp. Institutional Marketing Services
(315) 332-4262 (203) 972 - 9200
hkeenan@iec-electronics.com jnesbett@institutionalms.com
Exhibit 99.2
IEC ELECTRONICS CORP - CONSOLIDATED
BALANCE SHEET
DEC 26, 2008 AND SEP 30, 2008
(In Thousands)
DEC 26, 2008 SEP 30, 2008
ASSETS
CURRENT ASSETS
Cash 0 0
Accounts Receivable 10,088 10,345
Inventories 6,514 5,566
Deferred Income Taxes 1,908 1,908
Other Current Assets 61 61
Total Current Assets 18,571 17,880
NET FIXED ASSETS 1,042 853
NON-CURRENT ASSETS
Deferred Income Taxes 13,592 14,727
Other Non-Current Assets 57 60
TOTAL ASSETS 33,262 33,520
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Short Term Borrowings 1,072 1,098
Accounts Payable 6,782 6,125
Accrued Payroll and Related Taxes 699 808
Other Accrued Expenses 547 603
Other Current Liabilities 255 0
Total Current Liabilities 9,355 8,634
LONG TERM DEBT 7,304 8,910
TOTAL LIABILITIES 16,659 17,544
SHAREHOLDER'S EQUITY
Authorized - 50,000,000 shares
Outstanding – 9,345,898 shares
Common stock, par value $.01 per share 94 93
Treasury Shares at Cost (412,873 shares) (223 ) (223 )
Additional Paid-in Capital 40,218 40,124
Retained Earnings (23,486 ) (24,018 )
TOTAL SHAREHOLDER’S EQUITY 16,603 15,976
TOTAL LIABILITIES & EQUITY 33,262 33,520
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IEC ELECTRONICS CORP - CONSOLIDATED
STATEMENT OF INCOME
FOR QUARTER END & YTD DEC 26, 2008 AND DEC 28, 2007
(In Thousands)
ACTUAL PRIOR ACTUAL PRIOR
QUARTER QUARTER YTD YTD
DEC 26, 2008 DEC 28, 2007 DEC 26, 2008 DEC 28, 2007
Sales 15,857 11,160 15,857 11,160
Cost of Sales 13,623 10,013 13,623 10,013
Gross Profit 2,234 1,147 2,234 1,147
Less: Operating Expenses
Selling & G&A 1,287 754 1,287 754
Restructuring 0 0 0 0
Total Operating Expenses 1,287 754 1,287 754
Operating Profit 947 393 947 393
Interest and Financing Expense 124 93 124 93
Other Expense/(Income) 0 0 0 0
Net Income before Income Taxes 823 300 823 300
Provision for /(benefit from)Income Tax 291 (120 ) 291 (120 )
Net Income 532 420 532 420
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