NEWARK, NY -- The comeback at IEC Electronics continued in its third quarter as the EMS company reported net earnings rose 4% on a 45% jump in revenues.

For the period ended June 26, IEC reported revenue of $17.3 million, operating profit of $1.3 million and net income of $903,000. The third quarter of 2008 included $691,000 deferred tax benefit; without the benefit, IEC's earnings jumped 410% in the latest quarter.

Gross profit margin and operating profit reached 16.1% and 7.7% as a percent of sales, respectively, their highest points in more than 10 years. Gross profit margin was up 420 basis points from a year ago.

Year to date sales are up 41%.

Chairman and CEO W. Barry Gilbert said, "Our contract manufacturing business continues to improve. For the second consecutive quarter we have experienced gains in manufacturing efficiency attributable to investments in equipment and personnel over the last 12 months."

He added that the results were boosted by a favorable product mix. "We expect our gross profit margin as a percent of sales to normalize in a slightly higher range of between 15% and 16% than presented last quarter."

Gilbert said the company would consider acquisitions of cable assembly businesses. "We have engaged an investment banking firm to support our 'buy-side' activities to expand our position in cable assemblies. Though we have looked at a number of opportunities we will not hastily execute a transaction in this turbulent market."

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