Nortech Systems Inc. Reports Unaudited Consolidated Financial Results for the First Quarter Ended March 31, 2016; Provides Financial Guidance for 2016
May 04, 2016 at 05:10 pm EDT
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Nortech Systems Inc. reported unaudited consolidated financial results for the first quarter ended March 31, 2016. The company reported net sales of $29.0 million for the first quarter ended March 31, 2016, a 9% increase over net sales of $26.5 million for the first quarter of 2015. For the first quarter of 2016, operating income was $221,000, compared with an operating loss of $202,000 for the first quarter of 2015. First quarter net income of $63,000, or $0.02 per diluted common share, compares with a net loss of $193,000, or $0.07 per diluted common share, in the prior year. Income before income taxes was $88,926,000 against loss of $296,787,000 for the same period of last year. Revenue improvement was aided by last year's acquisition. The overall revenue increase, higher gross margin and fixed-cost leveraging accounted for the quarterly profit improvement. In addition, Nortech generated $1.3 million in operating cash flow.
The company expects volatility to continue through the first half of the year, but order pipeline and early engagement opportunities give the company optimism for the remainder of 2016.
Nortech Systems, Inc. is a provider of design and manufacturing solutions for complex electromedical devices, electromechanical systems, assemblies, and components. The Companyâs design services span concept development to commercial design, and include medical device, software, electrical, mechanical, and biomedical engineering. It offers a range of value-added engineering, technical and manufacturing services and support, including project management, designing, testing, prototyping, manufacturing, supply chain management and post-market services. Its manufacturing and engineering services include complete medical devices, printed circuit board assemblies, wire and cable assemblies, and complex higher-level electromechanical assemblies. All of its operations fall under the Contract Manufacturing segment within the Electronic Manufacturing Services (EMS) industry. Its customers are original equipment manufacturers (OEMs) in the medical, aerospace and defense, and industrial markets.