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Nortech Systems Reports First Quarter Results

Dépèche transmise le 11 mai 2011 par Business Wire

Nortech Systems Reports First Quarter Results

Nortech Systems Reports First Quarter Results

MINNEAPOLIS--(BUSINESS WIRE)--Nortech Systems Incorporated (NASDAQ: NSYS) today reported net sales of $29.0 million for the first quarter ended March 31, 2011, an increase of 33 percent over net sales of $21.7 million for the first quarter of 2010.

“In the short term, however, we’re absorbing costs associated with integrating them into our company.”

Net income for the first quarter of 2011 was $626,188, or $0.23 per diluted common share, which includes a non-operating gain, net of tax, of $528,007, or $0.19 per diluted common share, from the January acquisition of certain assets associated with the EMS operations of Winland Electronics, Inc. In the first quarter of 2010, Nortech reported net income of $95,284, or $0.03 per diluted common share.

“We’re pleased to report a solid increase in quarterly revenue, both from organic growth and our recent acquisitions,” said Mike Degen, Nortech Systems’ president and CEO. Of the $7.3 million quarterly revenue increase over the first quarter of 2010, Degen noted that 75 percent, or $5.5 million, was attributed to Nortech’s acquisitions in the past year – medical device operations in Milaca, Minn., and EMS operations in Mankato, Minn.

“We targeted these acquisitions for long-term profitable growth,” Degen explained. “In the short term, however, we’re absorbing costs associated with integrating them into our company.” He added that quarterly comparative results also reflect the reinstatement of wages, benefits and incentive programs in the second half of 2010.

“Nortech’s people remain our most valuable asset,” concluded Degen. “As our recovery continues, we were gratified to reward our employees’ dedication to delivering excellence for all our customers.”

Conference Call
Nortech Systems announces a conference call to be held at 10:00 a.m. (CDT) on Thursday, May 12, to discuss the company’s first 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 May 26, 2011, by dialing 877-660-6853 (from U.S.) or 201-612-7415 (International). To access the replay, the account number 286 and conference ID 371980 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, aerospace/defense and medical. 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 Income
    Three months ended Mar. 31,
Unaudited
2011     2010
Net Sales $ 28,998,197     $ 21,741,441
Income from Operations 286,662 325,782

Non-Operating Gain

791,615 0
Other Expense   (139,089 )   (170,498 )
Income before
Income Taxes 939,188 155,284
 

Income Tax Expense

  313,000     60,000  
 

Net Income

626,188 95,284
Net Income Per
Basic and Diluted
Common Share $ 0.23 $ 0.03
 
Weighted Average
Number of Common
Shares – Basic and
Diluted 2,742,992 2,740,548
 
         

Condensed Balance Sheets

March 31, 2011 Dec. 31, 2010
(Unaudited)      
Current Assets $ 40,072,551 $ 33,467,996
Property and Other Long-term Assets   10,023,282   8,092,928
Total Assets $ 50,095,833 $ 41,560,924
Current Liabilities $ 27,923,287 $ 20,403,551
Long-term Debt 2,249,607 1,868,554
Shareholders’ Equity   19,922,939   19,288,819
Total Liabilities and Shareholders’

Equity

$

50,095,833

$

41,560,924

Business Wire

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