EMS Firm HEI Returns to Profitability
MINNEAPOLIS -- HEI swung to a second-quarter net profit of $678,000, reversing a loss of $351,000 a year ago.
Sales for the period ended June 29 rose 35% year-over-year to $13.1 million.
The EMS provider reported increased sales at its Victoria division while sales at its Boulder, CO, and Tempe, AZ sites were comparable to 2012.
Gross margins improved to 17% of sales on a consolidated basis from 10% in the second quarter 2012 on higher sales volumes and continued cost-reduction initiatives.
"Our Victoria operation continues to grow with the large contracts relating to the military radio systems and other customer demand," said CEO Mark B. Thomas. "We are also seeing operational improvements in the Victoria and Tempe plants with better flow and improving yields. Our focus on all the aspects of the business, including the balance sheet, has resulted in improvements in inventory turns and reductions in long-term debt that have had positive impacts on cash flow. We are pleased with the production volume gains and profitability achieved and we continue to focus on our sales efforts to build the long-term business at all of our operating divisions. We continue to be guardedly optimistic that our participation in programs with government contractors will continue uninterrupted and will be part of our continued growth."
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