IEC Electronics Corp (NASDAQ:IEC) has announced results for its fiscal 2021 second quarter and laid out a path to “much higher revenue levels” as its complex infrastructure programs shift into gear.
For the three months ended April 30, 2021, IEC reported revenue of $45.4 million, a year-over-year increase of 2.7% from $44.2 million at the same stage in 2020. Gross profit was $3.3 million, 7.3% of sales, compared to gross profit of $5.5 million, 12.5% of sales in the second quarter of fiscal 2020.
The company reported a net loss of $300,000, $0.03 per diluted share, compared to net income of $1.5 million, $0.14 per diluted share, a year earlier.
“Second fiscal quarter results came in below expectations due to delays in ramping two high-value programs,” IEC CEO Jeffrey Schlarbaum said in a statement. “We believe we have built an infrastructure to support the conversion of much higher revenue levels that have now shifted into the second half of the fiscal year.”
Schlarbaum added: “These complex programs, which are anticipated to provide considerable long-term revenue opportunity for IEC, experienced unusual technical challenges and supply chain delays that slowed the ramp to steady production, impacting revenue and profitability for the quarter. We view this as simply a timing issue as demand for our highly technical and complex manufacturing capabilities remains strong.
“As we have often discussed, we are a manufacturing partner for high complexity, life-saving and mission-critical industries, where there is no compromise for exact technical precision and product quality. We are working closely with our customers to manage through the ramp-up challenges experienced in the second quarter and believe our partnerships have been strengthened by IEC’s technical capability matched with a remediation know-how for complex issues like the ones encountered in the fiscal second quarter.”
Going forward, the New York-based electronic manufacturing company said it is confident in its plan for fiscal 2021.
“With our visibility today, we remain confident and believe we are well-positioned to drive double-digit organic growth for the balance of fiscal 2021,” Schlarbaum noted. “As a 100% US-based manufacturer with a full portfolio of vertically integrated production services, IEC is an attractive partner for companies across several regulated industries who are looking for the highest levels of intellectual property protection and supply chain management.”
IEC Electronics 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.
Contact Andrew Kessel at [email protected]
Follow him on Twitter @andrew_kessel
Story by ProactiveInvestors
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