Attached files
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| 8-K - IEC ELECTRONICS CORP | v201486_8k.htm |
| EX-99.2 - IEC ELECTRONICS CORP | v201486_ex99-2.htm |
Exhibit
99.1
Newark,
NY – November 9, 2010 – IEC Electronics Corp. (NYSE Amex: IEC) announced its
results for the fourth quarter and fiscal year ending September 30,
2010.
For the
quarter, the Company reported revenue of $27.3 million and operating income of
$2.1 million. This compares with revenue of $18.3 million and
operating income of $1.4 million for the same quarter of fiscal
2009. Fourth quarter net income after tax was $1.6 million, or $0.17
per diluted share compared to net income after tax of $0.9 million or $0.09 per
diluted share in the prior year period.
For
fiscal year 2010, IEC reported revenue of $96.7 million and operating income of
$7.7 million. This compares to revenue of $67.8 million and operating
income of $4.8 million for fiscal 2009. Net income after tax was $4.7
million, or $0.48 per diluted share, for year end 2010 compared to net income
after tax of $5.0 million or $0.52 per diluted share for fiscal 2009. The $0.52
per diluted share included a tax benefit of $1.9 million (equivalent to $0.20
per share). Excluding the $1.9 million tax benefit, the net income
after tax for 2009 would have been $3.1 million, or $0.32 per
share.
W. Barry
Gilbert, Chairman of the Board and CEO, stated, “2010 was a strong year for us
as we continue to improve our operating performance and make solid inroads into
the Medical sector. Our backlog grew substantially despite continued
economic turbulence. The fiscal 2010 closing backlog was over $90.0
million as compared to a fiscal 2009 closing backlog of $41.4
million. $20 million of the backlog increase was due to the General
Technology and Celmet acquisitions made in December 2009 and July 2010
respectively. More than half of the increase was attributable to
organic growth. Our backlog consists of two categories: orders and
firm forecasted commitments.”
For the
fourth quarter of 2010, IEC reported earnings before interest, taxes
depreciation and amortization (EBITDA) of $3.0 million or $0.31 per diluted
share, compared to EBITDA of $1.5 million or $0.16 per diluted share in the
fourth quarter of 2009. For the fiscal year 2010, IEC reported EBITDA
of $9.1 million or $0.95 per diluted share as compared to $5.4 million or $0.56
per diluted share for fiscal 2009. The Company views EBITDA as a
useful measure of its operating performance as it eliminates the aberrations
produced by its net operating loss carryforward (NOL), and enables the
investment community to better evaluate long-term profitability and cash being
generated by the Company. IEC has a remaining NOL for federal and
state taxes of approximately $34 million.
“Our
customer mix has changed somewhat during 2010,” Gilbert said. “The
Medical sector significantly expanded and now represents 12.6% of revenue ($12.2
million), increasing from 7.7% of revenue ($5.2 million) in fiscal 2009. The
Military sector remains strong. It represents 49.0% of revenue ($47.5
million) in fiscal 2010, up from 43.4% of revenue ($29.4 million) in fiscal
2009. Sales to our Industrial customer base increased to $19.4
million, representing 20.0% of 2010 revenue, down proportionally from 24.3% of
revenue ($16.5 million) in fiscal 2009. The Industrial sector is
recovering slowly, and we are pleased with the results we have achieved in this
sector. The Aerospace sector also decreased as a percentage of our
business to 9.2% of revenue in fiscal 2010 from 12.0% of revenue in fiscal 2009,
but increased in absolute dollars to $8.9 million from $8.1
million.
“Fiscal
2010 saw IEC successfully integrate the acquisitions of General Technology and
Celmet,” Gilbert continued. “These two acquisitions have improved the
strategic position of the Company by broadening our product offerings and
diversifying our customer base. We continue to look for companies
that could provide a good fit with our strategic vision. Without any
acquisitions, we expect revenue growth from our existing business of
approximately 17% for fiscal 2011, and expect both our net income and EBITDA to
grow commensurately. We believe our Military and Aerospace sectors
will remain strong but anticipate that the Industrial sector is likely to remain
under pressure for most of 2011. Finally, we believe we can continue
to expand our presence in the Medical sector, which, as mentioned above, grew
nicely between 2009 and 2010.
As we
have said previously, we firmly believe the Company is continuing to move in the
right direction and we are confident that we are creating future value for our
customers and shareholders and opportunity for our employees.”
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IEC
Electronics Corporation provides contract electronics manufacturing services to
advanced technology companies primarily in the military, aerospace,
communications, medical, and industrial sectors. The Company’s ultra
high reliability capabilities include: design, prototype and volume
printed circuit board assembly, material procurement and control, manufacturing
and test engineering support, systems build, final packaging and
distribution. As a full service EMS provider, AS9100, IEC is
ISO-9001:2008 and ISO 13485 registered, and a NSA approved supplier under the
COMSEC standard. The Company is headquartered outside Rochester, New
York. It has additional operations in Rochester, New York, Victor,
New York and Albuquerque, New Mexico. Additional information about
IEC can be found on its web site at www.iec-electronics.com
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 revenue 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 and 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 our most recent Form 10-Q and Annual
Report and Form 10-K and in other filings with the Securities and Exchange
Commission.
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Contact:
Heather Keenan
IEC Electronics
Corp.
(315)
332-4262
hkeenan@iec-electronics.com
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John
Nesbett/Jennifer Belodeau
Institutional Marketing Services
(203) 972-9200
JohnNesbett@InternationalMS.com
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