IEC Takes Q4 Hit on SBC Unit Charges PDF Print E-mail
Written by Mike Buetow   
Friday, 20 December 2013 12:24

NEWARK, NY -- IEC Electronics swung to a net loss due to problems at its Southern California Braiding operation. The EMS company reported a net loss of $8.67 million for the period ended Sept. 30, down from profits of $1.59 million a year ago, including a $14.2 million impairment charge related to the SBC unit.

Revenues were up 5% year-over-year to $39.1 million, IEC's highest quarterly mark in over 10 years.

For the fiscal year, the firm reported revenue of $140.9 million, down 2.7% from fiscal 2012. The net loss was $9.53 million, down from net income of $6.69 million in 2012. By end-market, 51% of IEC's revenue came from military and aerospace, 21% from industrial, 20% from medical, and the remainder communication and other customers.

The charges to the SCB operation included non-cash impairments of goodwill and intangible assets, and personnel reductions. "The SCB acquisition has not met our expectations and has been a disappointment from a profitability, growth and cash flow perspective," chairman and CEO Barry Gilbert said.

"We expect the next two quarters to be flat for fiscal 2014 as compared to the six months of fiscal 2013," Gilbert said.

“We have grown quickly over the previous eight years, and aspects of our organizational structure did not keep pace. This year, we made changes which we believe will help us not only resolve our current challenges, but most importantly, position us for the future and our next stage of growth. This will take time."



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