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IEC Electronics Corp. has reported revenues of $26.5 million for the fiscal 2017 third quarter ended June 30, 2017, down from $32.5 million in the third quarter of fiscal 2016.
Sequentially, revenues increased by 24% compared to the second quarter of fiscal 2017. Gross profit margin for the quarter was 14% as compared to 16.8% in the same quarter last year, and represented an increase sequentially compared to gross margin of 10.7% in the second quarter of fiscal 2017. Selling and administrative expenses decreased on a dollar basis and as a percentage of sales to $2.6 million or 9.8% in the third quarter of fiscal 2017. The company recorded net income for the third quarter of fiscal 2017 of $0.8 million or $0.08 per share, compared to net income of $1.6 million, or $0.16 per share, in the same quarter last year.
Revenues for the first nine months of fiscal 2017 decreased to $68.8 million as compared to $98.6 million in the same period of fiscal 2016. Gross profit margin was 11.3%, down from 17.3% in the same period of last year. Selling and administrative expenses decreased on a dollar basis and as a percentage of sales to $7.7 million or 11.2% in the first nine months of fiscal 2017 as compared to $11.2 million or 11.4% of sales in the first nine months of fiscal 2016. Net loss for the first nine months of fiscal 2017 was $0.7 million, or $0.07 per share, compared to net income of $4.6 million, or $0.45 per share, in the same prior year period.
"Our third quarter results were in line with our expectations, demonstrating sequential increases in revenue, gross profit margin and a return to profitability. We are pleased to have seen incremental revenue growth in the third quarter from a large strategic customer who had previously reduced volumes in the first two quarters of fiscal 2017," says Jeffrey T. Schlarbaum, President and CEO of IEC Electronics. "Our new business pipeline continues to expand with activity from both existing and new customers as a result of our reformulated go to market strategy. The third quarter also reflects reduced selling and administrative expense as we’ve remained diligent in our efforts to control costs during what we believe is a temporary downturn in sales while also maintaining our ability to ramp our operations as sales return. With our visibility today, we believe that sales levels will continue to grow through the balance of fiscal 2017.
"Our balance sheet remains strong, providing a solid platform for our initiatives to win new customers and programs. We continue to gain traction in the marketplace as a leading provider of unique design and manufacturing solutions for the production of life-saving and mission critical products. We look forward to capitalizing on the opportunities in front of us to drive future growth and profitability."
About IEC Electronics
IEC Electronics is a provider of electronic manufacturing services ("EMS") to advanced technology companies that produce life-saving and mission critical products for the medical, industrial, aerospace and defense sectors. The company specializes in delivering technical solutions for the custom manufacture of complex full system assemblies by providing on-site analytical testing laboratories, custom design and test engineering services combined with a broad array of manufacturing services encompassing electronics, interconnect solutions, and precision metalworking. As a full-service EMS provider, IEC holds all appropriate certifications for the market sectors it supports including ISO 9001:2008, AS9100C, ISO 13485, and Nadcap. IEC Electronics is headquartered in Newark, NY and also has operations in Rochester, NY and Albuquerque, NM. Additional information about IEC can be found on its web site at www.iec-electronics.com.