HEI Swings to Profit
MINNEAPOLIS -- HEI Inc. swung to a first-quarter profit on a big jump in sales, in particular for military communications equipment.
For the period ended March 30, sales were up 38% from a year ago to $12.5 million. The EMS company's net income was $636,000, up from a net loss of $157,000 in 2012.
The company credited increased sales at its Victoria and Boulder (CO) divisions, partially offset by lower sales in Tempe (AZ).
Gross margins increased to 16% on a consolidated basis, compared to 13% in the prior year period.
"Our contracts relating to the military radio systems along with demand from our long-term customers provided for the sales growth that we saw in the first quarter," said HEI CEO, Mark B. Thomas. "Returning to profitability was also an important step for HEI and our customers. We have strong backlogs and have expanded our engineering staff along with our sales teams to continue to support and build the momentum moving forward."
