IEC Electronics building solid manufacturing niche that is exclusively 'US made'

• Provides electronic-manufacturing services to the aerospace, defense, industrial, and medical sectors
• Manufactures 100% of its products in the US, unlike many of its competitors
• 1Q 20201 net income climbed by 29% year-over-year

What IEC Electronics does:

IEC Electronics Inc (NASDAQ:IEC) is a provider of electronic manufacturing services to advanced technology companies that produce life-saving and mission-critical products in the aerospace, defense, industrial, and medical sectors. 

Founded in 1966, the Newark, New York-based company breaks its business down into six key areas: full-system assemblies, design & test development, analysis & testing lab, electronics manufacturing, interconnect solutions, and precision metalworking. 

The company specializes in delivering technical solutions via the custom manufacture of complex full-system assemblies (such as circuit boards) and by providing on-site analytical testing laboratories, custom-design, and test-engineering services. 

IEC manufactures 100% of its products in the US, unlike many of its competitors.

For the medical industry, the company’s products include infusion pumps, resuscitation and imaging systems, and diagnostic equipment. IEC’s BioWaveHome Neuromodulation Pain Therapy System helps manage pain through electrical stimulus. The Veterans Administration and the National Football League have expressed interest in the product which is seen as a viable alternative to using highly addictive opioid drugs to treat pain. 

It also makes ruggedized industrial controls, remote-inspection equipment, and weather-detection instruments for the industrial sector. 

In the aerospace and defense areas, the company produces encrypted satellite-communication, weapons and flight-control systems as well as handheld tactical radios for US troops in war zones. 

How is it doing:

IEC Electronics has made a strong start to 2021.

In its 1Q 2021 financial results, reported on February 2, the company saw its net income climb 29% year-over-year to $1.5 million, or $0.15 per share. The company noted that its top-line revenue also improved to $47.5 million, a 6% increase from the same period last year, while its gross profit margin for the quarter rose 40 basis points to 12.1% of sales.

The company’s fiscal 2020 fourth-quarter numbers, posted at the end of November 2020, saw it produced $46.4 million in revenue, a near 6% year-over-year increase. Higher sales in that quarter ended September 30, helped the company achieve net income of $1.9 million, or $0.18 per basic and diluted share, compared to net income of $1.8 million, or $0.17 per basic and diluted share, in 4Q 2019.

In September 2020, IEC revealed that it had entered into an agreement to purchase an 86,000 square-foot facility in Rochester, New York state.  The company said the new facility was expected to provide additional capacity and more importantly, access to a larger pool of qualified resources to support future organic growth.

In March that year, IEC also announced that it had been awarded a Low Rate Initial Production multi-year contract valued at more than $15 million from a top global defense contractor. 

Inflection points:

• Further top-line revenue growth
• More contract news
• Future organic growth

What the boss says:

When reporting the firm’s first-quarter 2021 results in February, IEC Electronics CEO Jeffrey Schlarbaum said: “As we move through fiscal 2021, we believe IEC is well-positioned to drive continued organic growth, maintain industry-leading margins and deliver enhanced profitability. Our reputation as a consistent and reliable manufacturing partner for high complexity, life-saving and mission-critical products continues to gain traction with customers in the marketplace.”

“Likewise, as a 100% US-based manufacturer with a full suite of vertically integrated production services, we believe we have a competitive advantage in attracting partners from a variety of regulated industries who are looking for the highest levels of intellectual property protection and supply chain management,” Schlarbaum continued.  

“We believe we are competitively positioned to continue to win new customers and programs and look forward to continuing to grow our leadership position as a provider of highly complex manufacturing solutions.”

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Story by ProactiveInvestors

Source: http://www.proactiveinvestors.com/companies/news/902987/iec-electronics-building-solid-manufacturing-niche-that-is-exclusively--us-made--902987.html