Tell us what you think about the new Article Page. Send us feedback
Nortech Systems Reports Third Quarter Results
Related Quotes
| Symbol | Price | Change |
|---|---|---|
| NSYS | 3.03 | 0.00 |
MINNEAPOLIS--(BUSINESS WIRE)--Nortech Systems Incorporated (NASDAQ: NSYS - News) today reported net sales of $18.7 million for the third quarter ended September 30, 2009, compared to net sales of $31.7 million for the third quarter of 2008. After restructuring costs, the operating loss for the third quarter was $1.1 million, compared to operating income of $946,000 for the third quarter of 2008.
For the third quarter of 2009, Nortech Systems reported a net loss of $854,000, or $0.31 per diluted common share, compared with net income of $499,000, or $0.18 per diluted common share, for the third quarter of 2008. The net loss in the second quarter of 2009 was $1.5 million, or $0.56 per diluted common share.
During the third quarter of 2009, operating profits improved sequentially by 49 percent before restructuring costs. Nortech Systems reported restructuring and impairment charges in the third quarter of $353,000, or $0.08 per diluted common share. Excluding these costs, the quarterly net loss would have been $0.23 per diluted common share, a sequential improvement over the loss of $0.42 per diluted common share reported in the second quarter of 2009, on six percent lower quarterly revenue.
“Our third quarter net sales appear to represent the trough of the economic downturn for Nortech,” said Mike Degen, president and CEO of Nortech Systems. “We are beginning to see increased forecasts, greater quoting activity from both new and existing customers and some modest increases in our backlog.”
Nortech’s improvements in operating profits during the third quarter resulted from the company’s cost-reduction initiatives that began in the first quarter and the capacity restructuring completed in late August.
“We are encouraged by our recent quarterly performance, particularly because we only realized restructuring-related benefits and savings during September,” added Degen. “Our cash flow from operations has been positive since March and we are moving closer to our goal of returning to profitability.” He concluded, “For the remainder of 2009 and into 2010, our focus can now shift to servicing our customers’ needs and achieving profitable growth.”
Conference Call
Nortech
Systems announces a conference call to be held at 10:00 a.m. (CST) on
Thurs., Nov. 5, 2009, to discuss the company’s third quarter results.
Anyone interested in participating in the conference can access the call
by dialing 877-407-8033 from within the United States, or 201-689-8033
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.
A podcast (MP3 download) will also be available. The telephone replay
will be available through Nov. 19, 2009, by dialing 877-660-6853 (from
U.S.) or 201-612-7415 (International). To access the replay, the account
number 286 and conference ID 336120 are both required.
About Nortech Systems, Incorporated
Nortech
Systems Incorporated (www.nortechsys.com),
based in Wayzata, 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 equipment,
military/defense, medical and transportation. The company has
manufacturing capabilities and operating partners in the U.S., Asia and
Latin America. Nortech Systems Incorporated is traded on the NASDAQ
Stock Market under the symbol NSYS.
Forward-Looking Statements
This
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 Sept. 30, | Nine months ended Sept. 30, | ||||||||
| Unaudited | Unaudited | ||||||||
| 2009 | 2008 | 2009 | 2008 | ||||||
|
Net Sales |
$18,650,684 | $31,657,112 | $60,092,430 | $94,880,658 | |||||
|
Income (Loss) from |
|||||||||
| Operations | (1,149,251) | 946,127 | (5,492,441) | 3,296,211 | |||||
| Income (Loss) before | |||||||||
| Income Taxes | (1,376,694) | 830,261 | (5,998,694) | 2,767,879 | |||||
| Income Tax Expense | |||||||||
| (Benefit) | (523,000) | 331,000 | (2,309,000) | 1,091,000 | |||||
|
Net Income (Loss) |
(853,694) | 499,261 | (3,689,694) | 1,676,879 | |||||
| Net Income (Loss) Per | |||||||||
| Basic Common Share | ($0.31) | $ 0.18 | ($1.35) | $0.62 | |||||
| Weighted Average | |||||||||
| Number of Common | |||||||||
| Shares – Basic | 2,738,989 | 2,729,455 | 2,738,972 | 2,715,789 | |||||
| Net Income (Loss) Per | |||||||||
| Diluted Common | |||||||||
| Share | ($0.31) | $ 0.18 | ($1.35) | $0.61 | |||||
| Weighted Average | |||||||||
| Number of Common | |||||||||
| Shares – Diluted | 2,738,989 | 2,774,275 | 2,738,972 | 2,749,247 | |||||
|
Condensed Balance Sheets |
||||||||||
| Sept. 30, 2009 | Dec. 31, 2008 | |||||||||
| (Unaudited) | ||||||||||
| Current Assets | $ | 31,815,387 | $ | 37,191,982 | ||||||
| Property and Other Long-term Assets | 9,675,800 | 11,249,110 | ||||||||
| Total Assets | $ | 41,491,187 | $ | 48,441,092 | ||||||
| Current Liabilities | $ | 18,422,964 | $ | 21,414,198 | ||||||
| Long-Term Debt | 4,241,894 | 4,608,869 | ||||||||
| Shareholders’ Equity | 18,826,329 | 22,418,025 | ||||||||
| Total Liabilities and Shareholders’ | ||||||||||
| Equity | $ | 41,491,187 | $ | 48,441,092 | ||||||
Contact:
Nortech Systems Incorporated
Richard Wasielewski, 952-345-2244
or
Brookside Communications Group
Warren Djerf, 952-920-3908
warren@brookcomm.net
Related Headlines
- NORTECH SYSTEMS INC Financials - EDGAR Online Financials
- NORTECH SYSTEMS INC Files SEC form 10-Q, Quarterly Report - EDGAR Online
- Nortech Systems Reports Third Quarter Results - Business Wire
- Q3 2009 Nortech Systems Earnings Release - Time Not Supplied - CCBN
- Nortech Systems to Report Third Quarter Results Nov. 4 - Business Wire
Top Stories
Tech Ticker Recent Posts
Add Alert Copyright © 2009 Business Wire. All rights reserved. All the news releases provided by Business Wire are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials by posting, archiving in a public web site or database, or redistribution in a computer network is strictly forbidden.