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IEC Electronics sees fiscal 2Q revenue rise by 18.4% driven by an expanding and diverse customer base

Founded in 1966, IEC manufactures all its products in the US, unlike many of its competitors — this could prove a major asset during the coronavirus pandemic

IEC Electronics - IEC Electronics Corp’s fiscal 2Q revenue rises 18.4% driven by an expanding and diverse customer base
IEC Electronics provides services to companies that produce life-saving and mission-critical products in the aerospace, defense, industrial and medical sectors

IEC Electronics Corp (NASDAQ:IEC) posted fiscal second-quarter results on Wednesday that saw its revenue jump 18.4% year-over-year on the back of bookings from an increasingly expanded and diverse customer base.

For its fiscal second quarter ended March 27, 2020, the Newark, New York-based provider of electronic manufacturing services to advanced technology companies, reported revenue of $44.2 million, compared to $37.3 million in the fiscal second quarter of 2019. 

Gross profit for its second quarter was $5.5 million, or 12.5% of sales, compared to gross profit of $4.6 million, or 12.3% of sales in the fiscal second quarter of 2019. The company lowered its selling and admin expenses to $3.2 million in the quarter, compared to $3.3 million in the same quarter a year earlier.

READ: IEC Electronics has a manufacturing niche that is exclusively 'US made'

IEC Electronics reported net income of $1.5 million, or $0.15 per basic and $0.14 per diluted share for the fiscal second quarter, compared to net income of $0.7 million, or $0.06 per basic and diluted share in the same period in fiscal 2019.

In a statement accompanying the numbers, IEC Electronics CEO Jeffrey T. Schlarbaum said: “Our second-quarter results continued the momentum built over the past few quarters. We reported solid revenue growth of 18% compared to last fiscal year’s second quarter and significantly improved profitability.

“Our book to bill ratio was strong at 1.5:1 and notably, we are generating bookings from an increasingly expanded and diverse base of customers.”

“As our reputation as a premier provider of vertically integrated manufacturing solutions for mission-critical and life-saving electronics continues to grow, we are attracting new projects from existing customers, taking market share away from fellow competitors, as well as winning new business awards from new customers,” he added.

Founded in 1966, IEC manufactures its products exclusively in the US, unlike many of its competitors.

Schlarbaum noted that as the US adapts to the impact of the coronavirus (COVID-19) pandemic, as an “essential employer” IEC has taken precautions to keep its employees safe, while “balancing the important role” it serves fulfilling “critical demands” from its customers.

“Importantly, we have deliberately maintained a 100% US manufacturing footprint, which we believe makes us an increasingly attractive supply option for existing and potential customers given current and anticipated future trade complications associated with the COVID-19 pandemic,” he pointed out.

IEC Electronics provides services to companies that produce life-saving and mission-critical products in the aerospace, defense, industrial and medical sectors.

For the first six months of fiscal 2020, the company posted a 22.2% jump in revenue to $88.9 million, compared to revenue of $72.7 million for the first six months of fiscal 2019.

Gross profit rose 12.1% to $10.7 million, which included the negative impact of a one-time inventory reserve of $1 million related to a reorganization at one of the company’s customers in the medical sector.

Again, selling and admin expenses were lower at $6.5 million in the first six months of fiscal 2020, compared to $6.7 million in the same period in fiscal 2019.

The company reported net income of $2.7 million, or $0.26 per basic and $0.25 per diluted share for the first six months of fiscal 2020, compared to net income of $1.7 million, or $0.17 per basic and $0.16 per diluted share in the same period in fiscal 2019. The company said adjusted net income per share would have been $0.34 per basic and $0.32 per diluted share for the six months ended March 27, 2020.

IEC said a conference call will be hosted on Wednesday at 10:00 am ET to discuss the results. Investors can dial the US and Canada toll-free on (877) 407-9210; International callers may access the meeting by dialing (201) 689-8049.

Contact the author Uttara Choudhury at [email protected]

Follow her on Twitter: @UttaraProactive 

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Price: 10.75 USD

NASDAQ:IEC
Market: NASDAQ
Market Cap: $110.28 m
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