NEWARK, NY -- IEC Electronics today reported fiscal second quarter revenue slipped 5.5% year-over-year to $32.9 million.

For the period ended Mar. 27 the net loss was $5.5 million, versus to a net loss of $14.7 million a year ago.

Gross profit margin for the second quarter was 7.8%, down from 13.3% in the same quarter last year, due to problems at the company's Albuquerque and SCB operating locations, and $700,000 of additional stock-based compensation related to management changes in February, partially offset by improved performance at IEC's other operating locations.

Last week the company said it would restate its fiscal 2014 results due to errors in reporting its excess and obsolete inventory. 

CEO and president Jeff Schlarbaum called the poor fiscal results a "holdover" from the contract assembler's previous management, which was ousted in a proxy fight early this year. The firm could close underperforming sites, he added.

"Since my return to IEC three months ago, the team and I have begun implementing a strategy to stabilize the business, reestablish superior operational execution with a focus on driving exceptional levels of customer satisfaction, rehabilitate underperforming acquisitions and reestablish organic growth. The poor second quarter and six month financial results are a holdover from the previous strategy, and I am confident that our new strategy for IEC will drive improved future performance.

"Operationally, we are in the process of unifying a fairly decentralized organizational structure under one revitalized IEC brand. At our largest manufacturing facility in Newark, New York, we are realigning the organization to eliminate redundant overhead used to support a previous sector-focused manufacturing structure. Furthermore, we are closely assessing both Southern California Braiding and our Albuquerque facility, first and foremost to address underperformance, with the possibility of consolidating or divesting the operations if we believe that makes sense for the company and its sh areholders. Finally, the business development strategy that helped produce significant growth while I was previously with the company is in the process of being restored." 

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