"This was an excellent quarter for us at the top line and in terms
of profitability," said Mike Degen, president and
CEO. "Our growth rate continues to exceed the industry average and we
believe we are well-positioned for the remainder of 2006 and beyond."
The company is on pace to surpass $100 million in revenue this
fiscal year, up more than 20% from 2005. The industry average is about 11%, Degen said.
Three-month order backlogs rose 12% during the third quarter. In October the company secured an $8.5 million order for custom cable assemblies from a U.S. defense contractor, deliverable over the next 12 months.
Nortech raised its earnings for fiscal 2006 to 46 to 48 cents, compared with the 36 cents last year. The company expects revenues of $102 million to $104 million, an increase of 21 to 24% over last year.
Income from operations fell 13.9% to $631,262 versus last year and was up 32% sequentially.
In a press release, Winland chief executive Lorin Krueger said the company was focusing on diversifying its product mix as its major customer, Select Comfort, migrates 50% of its business to a second supplier. That previous announced transition will begin in
mid November.
"During the third quarter, we brought 26 new or revised products online which included product introductions from four new customers. [W]e are optimistic that our continued efforts to diversify our customer and product offerings will offset this loss of the Select Comfort business."