Click here to close now.




















Welcome!

News Feed Item

Nortech Systems Reports Second Quarter Results

Nortech Systems Incorporated (NASDAQ: NSYS) today reported net sales of $27.4 million for the second quarter ended June 30, 2014, up five percent sequentially from the prior quarter and compared with $28.5 million for the second quarter of 2013. Operating income for the second quarter of 2014 was $347,000 a 47 percent sequential increase from the prior quarter and compared with $373,000 for the second quarter of 2013.

The company’s net income for the second quarter of 2014 rose 32 percent to $247,000, or $0.09 per diluted common share, compared with net income of $187,000, or $0.07 per diluted common share, for the same period last year. Results for the second quarter of 2014 included a $100,000 benefit from a favorable tax audit settlement.

For the six months ended June 30, 2014, Nortech Systems reported net sales of $53.6 million, compared with $54.4 million for the same period in 2013. Net income for the six-month period ended June 30, 2014, was $333,000, or $0.12 per diluted common share, compared with $328,000, or $0.12 per diluted common share, for the same period in 2013.

“We’re encouraged by the sequential improvement in revenue and profits,” said Rich Wasielewski, Nortech Systems’ president and CEO, adding that profitability was aided by leveraging, continuous improvement activities and product mix.

He continued, “New order activity is rising and our backlog levels have posted year-over-year increases the past two quarters.” The company’s 90-day backlog rose 13 percent during the second quarter; medical and industrial customers recorded quarterly increases both sequentially and year-over-year. Defense demand was lower due to government program transitions and funding delays.

“We’re pleased with our momentum going into the second half of 2014, including our order pipeline, and the improving economic conditions,” concluded Wasielewski. “We’re dedicated to helping our customers succeed.”

Conference Call
Nortech Systems announces a conference call to be held at 10:00 a.m. (CDT) on Thursday, August 7, 2014, to discuss the company’s second quarter results. Anyone interested in participating in the conference can access the call by dialing 877-407-8031 from within the United States, or 201-689-8031 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 August 21, 2014, by dialing 877-660-6853 (from U.S.) or 201-612-7415 (International). To access the replay, the conference ID 13587192 is 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 in the U.S. 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 June 30,   Six months ended June 30,
Unaudited   Unaudited
2014   2013   2014   2013
Net Sales $27,408,467   $28,450,699 $53,557,609   $54,376,100

Income from Operations

347,177

373,105

583,398

596,727

 
Other Expense (115,476 ) (87,886 ) (215,540 ) (191,419 )
 

Income before Income Taxes

231,701

285,219

367,858

405,308

 

Income Tax Expense (Benefit)

(15,000 ) 98,000   35,000   77,000  
 

Net Income

246,701 187,219 332,858 328,308
 

Net Income Per Basic and Diluted Common Share

$0.09 $0.07 $0.12 $0.12
 

Weighted Average Number of Common Shares –

Basic

2,742,992 2,742,992 2,742,992 2,742,992
Diluted 2,746,856 2,742,992 2,747,357 2,742,992

Condensed Balance Sheets

   
June 30, 2014 Dec. 31, 2013
(Unaudited)    
Account Receivable $ 15,161,253 $ 16,030,848
Inventories 19,390,549 17,427,470
Other Current Assets 1,641,869 1,457,524
Property and Other Long-term Assets   10,993,352   11,159,579
Total Assets $ 47,187,023 $ 46,075,421
 
Line of Credit – Current $ - $ 7,234,983
Accounts Payable 9,534,593 8,185,012
Other Current Liabilities 3,639,951 3,946,543
Line of Credit – Long-Term 7,166,396 -

Long-term Debt and Other Long-Term Liabilities

4,562,814 4,773,435
Shareholders’ Equity   22,283,269   21,935,448

Total Liabilities and Shareholders’ Equity

$

47,187,023

$

46,075,421

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
In a recent research, analyst firm IDC found that the average cost of a critical application failure is $500,000 to $1 million per hour and the average total cost of unplanned application downtime is $1.25 billion to $2.5 billion per year for Fortune 1000 companies. In addition to the findings on the cost of the downtime, the research also highlighted best practices for development, testing, application support, infrastructure, and operations teams.
"We specialize in testing. DevOps is all about continuous delivery and accelerating the delivery pipeline and there is no continuous delivery without testing," noted Marc Hornbeek, Sr. Solutions Architect at Spirent Communications, in this SYS-CON.tv interview at @DevOpsSummit, held June 9-11, 2015, at the Javits Center in New York City.
How do you securely enable access to your applications in AWS without exposing any attack surfaces? The answer is usually very complicated because application environments morph over time in response to growing requirements from your employee base, your partners and your customers. In his session at @DevOpsSummit, Haseeb Budhani, CEO and Co-founder of Soha, shared five common approaches that DevOps teams follow to secure access to applications deployed in AWS, Azure, etc., and the friction an...
"Alert Logic is a managed security service provider that basically deploys technologies, but we support those technologies with the people and process behind it," stated Stephen Coty, Chief Security Evangelist at Alert Logic, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
Digital Transformation is the ultimate goal of cloud computing and related initiatives. The phrase is certainly not a precise one, and as subject to hand-waving and distortion as any high-falutin' terminology in the world of information technology. Yet it is an excellent choice of words to describe what enterprise IT—and by extension, organizations in general—should be working to achieve. Digital Transformation means: handling all the data types being found and created in the organizat...
The essence of cloud computing is that all consumable IT resources are delivered as services. In his session at 15th Cloud Expo, Yung Chou, Technology Evangelist at Microsoft, demonstrated the concepts and implementations of two important cloud computing deliveries: Infrastructure as a Service (IaaS) and Platform as a Service (PaaS). He discussed from business and technical viewpoints what exactly they are, why we care, how they are different and in what ways, and the strategies for IT to tran...
The Internet of Everything (IoE) brings together people, process, data and things to make networked connections more relevant and valuable than ever before – transforming information into knowledge and knowledge into wisdom. IoE creates new capabilities, richer experiences, and unprecedented opportunities to improve business and government operations, decision making and mission support capabilities.
The Software Defined Data Center (SDDC), which enables organizations to seamlessly run in a hybrid cloud model (public + private cloud), is here to stay. IDC estimates that the software-defined networking market will be valued at $3.7 billion by 2016. Security is a key component and benefit of the SDDC, and offers an opportunity to build security 'from the ground up' and weave it into the environment from day one. In his session at 16th Cloud Expo, Reuven Harrison, CTO and Co-Founder of Tufin,...
The Internet of Things is not only adding billions of sensors and billions of terabytes to the Internet. It is also forcing a fundamental change in the way we envision Information Technology. For the first time, more data is being created by devices at the edge of the Internet rather than from centralized systems. What does this mean for today's IT professional? In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists addressed this very serious issue of pro...
Container technology is sending shock waves through the world of cloud computing. Heralded as the 'next big thing,' containers provide software owners a consistent way to package their software and dependencies while infrastructure operators benefit from a standard way to deploy and run them. Containers present new challenges for tracking usage due to their dynamic nature. They can also be deployed to bare metal, virtual machines and various cloud platforms. How do software owners track the usag...
With SaaS use rampant across organizations, how can IT departments track company data and maintain security? More and more departments are commissioning their own solutions and bypassing IT. A cloud environment is amorphous and powerful, allowing you to set up solutions for all of your user needs: document sharing and collaboration, mobile access, e-mail, even industry-specific applications. In his session at 16th Cloud Expo, Shawn Mills, President and a founder of Green House Data, discussed h...
Discussions about cloud computing are evolving into discussions about enterprise IT in general. As enterprises increasingly migrate toward their own unique clouds, new issues such as the use of containers and microservices emerge to keep things interesting. In this Power Panel at 16th Cloud Expo, moderated by Conference Chair Roger Strukhoff, panelists addressed the state of cloud computing today, and what enterprise IT professionals need to know about how the latest topics and trends affect t...
"Our biggest growth area has been the security services, the managed services - the things that differentiate us in the market that there is no client that's too small and there's no client that's too big," explained Paul Mazzucco, Chief Security Officer at TierPoint, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
SYS-CON Events announced today that HPM Networks will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. For 20 years, HPM Networks has been integrating technology solutions that solve complex business challenges. HPM Networks has designed solutions for both SMB and enterprise customers throughout the San Francisco Bay Area.
Containers are changing the security landscape for software development and deployment. As with any security solutions, security approaches that work for developers, operations personnel and security professionals is a requirement. In his session at DevOps Summit, Kevin Gilpin, CTO and Co-Founder of Conjur, will discuss various security considerations for container-based infrastructure and related DevOps workflows.