Attached files
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| 8-K - IEC ELECTRONICS CORP | v209957_8k.htm |
| EX-99.2 - IEC ELECTRONICS CORP | v209957_ex99-2.htm |
Exhibit
99.1
Newark,
NY – February 3, 2011 – IEC Electronics Corp. (NYSE Amex: IEC) announced its
unaudited results for the first quarter of fiscal 2011 ending December 31,
2010.
The
Company reported revenue of $28.7 million for the quarter, operating income of
$1,963,000 and net income of $1,049,000 or $0.11 per diluted share. This
compares to revenue in the prior year first quarter of $18.1 million, operating
income of $1,313,000 and net income of $754,000 or $.08 per diluted
share.
W. Barry
Gilbert, Chairman of the Board and CEO, stated, “As previously announced, we
acquired Southern California Braiding, Inc. (“SCB”) on December 17, 2010.
Between December 17 and our quarter end, we incurred approximately $70,000 of
transitional start-up expenses. The more time we spend with SCB the more
excited we become with the prospects for this acquisition and cross selling
opportunities. As it was so near the end of the reporting period, the
acquisition had almost no impact on our first quarter results. We enjoyed
a strong quarter with continued sales, earnings and cash flow growth.
During the quarter, we also experienced some challenges introducing a number of
new projects while also managing an unusual level of product mix variations,
resulting in some temporary inefficiencies amounting to approximately
$200,000. With these first quarter inefficiencies behind us we remain
confident in our outlook for 2011.”
For the
first quarter of 2011, IEC reported earnings before interest, taxes,
depreciation and amortization (EBITDA) of $2.4 million or $0.25 per diluted
share, compared to EBITDA of $1.4 million or $0.15 per diluted share in the
first quarter of 2010. As mentioned in the past, the Company views EBITDA
as a useful measure of its operating performance because 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
flow being generated by the Company. IEC’s remaining NOL for federal and
state taxes is approximately $33.2 million.
Gilbert
also observed, “Some of our customers who were experiencing difficulty during
the recession have begun to recover. Their commercial outlook is
substantially brighter and we expect to reap the benefit of that growth, in
addition to the market share gains we have made. We believe our increased
market share is a result of the continued high level of commitment our employees
have to deliver for our customers…. Absolutely,
Positively Perfect and On Time(sm).”
Conference
Call
IEC will
host a conference call with investors at 10:00 a.m. Eastern time today, February
3, 2011 to discuss its financial results for the quarter ended December 31,
2010. The call may be accessed in the U.S. and Canada by dialing toll-free
1-877-407-9210. International callers may access the call by dialing
1-201-689-8049. To access a live webcast of the conference call, log onto
the IEC website at http://www.iec-electronics.com
or http://www.InvestorCalendar.com.
A replay
of the teleconference will be available for 30 days after the call and may be
accessed domestically by dialing 1-877-660-6853 and international callers may
dial 1-201-612-7415. Callers must enter account number 286 and conference
number 366229.
About
IEC Electronics
IEC
Electronics Corporation is a premier provider of electronic manufacturing
services (“EMS”) to advanced technology companies primarily in the military and
aerospace, medical, industrial and computing sectors. The Company
specializes in the custom manufacture of high reliability, complex circuit
cards, system level assemblies, a wide array of custom cable and wire harness
assemblies, and precision sheet metal products. As a full service EMS provider,
IEC is a world-class ISO 9001:2008, AS9100 and ISO13485 certified company. The
AS9100 certification enables IEC to serve the military and commercial aerospace
markets. The ISO13485 certification supports the quality requirements
of medical device markets. The Company is also ITAR registered and
NSA approved under the COMSEC standard. IEC Electronics is
headquartered in Newark, NY (outside of Rochester) and also has operations in
Victor, NY, Rochester, NY, and Albuquerque, NM and Bell Gardens,
CA. 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 sales to
principal customers, competition and technological change, the ability of the
Company to control manufacturing and operating costs, the ability of the Company
to develop and maintain satisfactory relationships with vendors, and the ability
of the Company to efficiently integrate acquired companies into its
business. 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
2010 Annual Report on Form 10-K and in other filings with the Securities and
Exchange Commission.
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Contact:
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Susan
E. Topel-Samek
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John
Nesbett or Jennifer Belodeau
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Vice
President & CFO
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Institutional
Marketing Services
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IEC
Electronics Corp.
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(203)972-9200
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(315)332-4308
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jnesbett@institutionalms.com
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stopel@iec-electronics.com
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jbelodeau@institutionalms.com
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