IEC Electronics Corp (NASDAQ:IEC) posted strong fiscal third-quarter results on Wednesday that saw its revenue jump 17% year-over-year driven by its ability to deliver “reliable” electronic manufacturing solutions for complex products even during the coronavirus pandemic.
For the period ended June 26, 2020, the Newark, New York-based provider of electronic manufacturing services to advanced technology companies reported revenue of $47.4 million, compared to $40.3 million in the fiscal third quarter of 2019.
Gross profit for its third quarter was $6.6 million, or 14% of sales, compared to gross profit of $5.6 million, or 13.9% of sales in the third quarter of fiscal 2019. Selling and admin expenses amounted to $3.7 million in the quarter.
For the fiscal third quarter, IEC posted a net income of $2.1 million, or $0.20 per basic and diluted share, compared to net income of $1.2 million, or $0.12 per basic and $0.11 per diluted share in the same quarter in 2019.
IEC also had an operating cash flow of $6 million during the third quarter, compared to $0.4 million for the same period in fiscal 2019.
In a statement accompanying the numbers, IEC Electronics CEO Jeffrey T Schlarbaum said: “Just a year ago, we achieved a company milestone by breaking through our internal $40 million quarterly revenue threshold, at which time we reset our internal quarterly revenue benchmark to $45 million.”
He added: “Despite the challenging economic and public health landscape, we solidly surpassed that revenue benchmark in the quarter, as well as delivered gross margins of 14%, which we believe is amongst the highest in our industry…a testament to our role as a highly capable and reliable electronic manufacturing solutions provider for complex products in highly regulated industries. It also demonstrates the resilience of our employees who have continued to get the job done while navigating a pandemic.”
Founded in 1966, IEC manufactures its products exclusively in the US, unlike many of its competitors.
“We continue to generate bookings from a diverse base of customers and remain focused on end markets that value our exclusively US-based production model and who recognize the advantages of our vertically integrated manufacturing solutions for mission critical and life-saving products,” said Schlarbaum.
The IEC boss said the company’s pipeline and backlog remained strong as it continued to attract new business from new customers and secure new projects from existing customers.
“We continue to see increased interest from the marketplace and are positioned well to achieve continued organic growth and profitability as we close out fiscal 2020,” said Schlarbaum.
For the first nine months of fiscal 2020, the company reported revenue of $136.3 million, a 21% increase, compared to revenues of $113.1 million for the first nine months of fiscal 2019. Gross profit for the first nine months was $17.4 million, or 12.8% of sales, which includes 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, compared to a gross profit of $15.3 million, or 13.5% of sales in the first nine months of fiscal 2019.
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-- Adds financial details for first nine months of fiscal 2020 --