IEC Swings to Q2 Loss PDF Print E-mail
Written by Mike Buetow   
Monday, 20 May 2013 10:52

NEWARK, NY -- IEC Electronics' revenues fell 11% year-over-year for its fiscal second quarter ended Mar. 29, according to preliminary company estimates. As previously reported the company is restating its financials for the quarters ended Dec. 30, 2011; Mar. 30, June 29, and Dec. 28, 2012.

Due to the ongoing review, the contract electronics assembler has requested an extension for filing its financial statements for the Mar. 29 quarter. The final results and restatements are anticipated within the next 45 days.

The EMS company left unchanged its previous estimates for the restatement adjustment to its consolidated financial statements per its May 1 8-K filing. Then, IEC indicated it estimates fiscal 2012 pretax income was 13.7% less than previously reported.

For the quarter, the printed circuit board assembler took a net loss of $1.1 million, versus net income of $2.5 million last year. IEC cited lower demand from the medical, industrial and communications and other market sectors, partially offset by higher revenue in military and aerospace. Gross profit fell $5.2 million to 8.6% of sales from 21.3% of sales a year ago on lower volume and unfavorable product mix. The firm took absorbed certain costs related to the realignment of its Newark, NY, manufacturing facility from one large to three smaller operations focused on specific end-markets, and cut an unspecified number of workers.

Chief executive W. Barry Gilbert said, "Operationally, this was a very difficult quarter. While revenues were slightly higher than the first quarter, we realized lower revenue compared to last year coupled with higher costs. Unfortunately, this quarter coincided with the need to restate our financial statements. We currently expect the restatement to be complete within approximately 45 days, and our estimates for the restatement adjustment to the Company's consolidated financial statements as previously reported have not changed."

 

Last Updated on Monday, 20 May 2013 11:08
 

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