NEWARK, NY -- IEC Electronics announced fiscal fourth-quarter revenue from continuing operations grew 7.4% from a year ago to $33.9 million.

For the period ended Sept. 30,  net income from continuing operations was $800,000, down from $1.4 million a year ago.

During the quarter the company recorded a benefit of approximately $1.3 million, net of expenses, in connection with its resolution of directors and officers liability insurance claims.

Gross profit margin improved 230 basis points to 15.3% on efficiency improvements and lower excess and obsolete inventory expenses.

The results for continuing operations in both the 2014 and 2015 time periods do not include Southern California Braiding, which IEC divested at the start of its fiscal 2015 fourth quarter. 

The SCB unit lost $700,000 during the period, compared to a net loss of $400,000 in fiscal 2014. 

IEC said it has reached a preliminary understanding with the SEC regarding a potential settlement of its investigation of the company's restatement of its consolidated financial statements for the fiscal year ended Sept. 30, 2012 and the quarter ended Dec. 28, 2012. As part of the proposed settlement, the company would pay a penalty of $200,000. This penalty has been fully accrued for in the fourth quarter of fiscal 2015. 

Revenues for the year ended Sept. 30 increased 5.1% to $127 million, and the net loss from continuing operations was $3.8 million, versus a net loss of $14.6 million in fiscal 2014. The gross profit margin was 12.8%, up 150 basis points from the prior year. 

The loss from discontinued operations for the year was $6.4 million, compared to a net loss of $400,000 in fiscal 2014. The overall net loss was $10.2 million, compared to a net loss of $15.1 million in 2014.

Backlogs as of Sept. 30 were $91.6 million, down from $105.3 million a year ago, due to the sale of SCB and a reduction in one medical customer's orders compared to last year. 2015 backlog expected to ship in the next 12 months is $91.2 million, compared to $89.1 million in 2014 year-end backlog, excluding SCB.

IEC president and CEO Jeff Schlarbaum said, "Our fourth-quarter results reflect the continuing progress of our turnaround efforts. To date, we've broken through many of the headwinds we faced earlier in the year and we remain focused on restoring the confidence of our customers, rebuilding operational excellence and driving improved profitability. As previously reported, we strategically divested SCB at the start of the quarter, with the goal of redirecting our resources to center our efforts on enhancing our core business and vertical markets. We're pleased to have demonstrated solid revenue growth from our continuing operations with improved margins."

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