NEWARK, NY -- IEC Electronics reported flat fiscal third-quarter sales of $32.5 million, but the EMS firm swung to a net profit.

Net income for the quarter ended July 1 was $1.6 million, versus a net loss of $4 million a year ago. 

Gross profit margin for the third quarter grew to 16.8% compared to 14.4% in the same quarter last year. Selling and administrative expenses (excluding restatement and related expenses), decreased to $3.5 million or 10.7% of sales as compared to $3.7 million or 11.3% of sales in the third quarter of fiscal 2015. 

The company incurred a loss on discontinued operations of $4.4 million in the year-ago quarter related to its divestiture of its Southern California Braiding subsidiary.

IEC reduced net debt by $4.7 million in the most recent quarter. In addition, IEC reduced net inventory by $5.6 million compared to inventory levels at year end 2015 and by $3.8 million compared to the second quarter of 2016.

During the quarter, IEC announced a three-year, $10.2 million contract from a Tier 2 US Department of Defense supplier in support of digital tactical networking and voice communication equipment for US aircraft, ground vehicles, and surface warships. The company expects production to commence in the current quarter. Additionally, subsequent to the close of the third quarter, the company announced a one-year, $3.7 million contract from a strategic aerospace/defense customer. IEC will manufacture guided missile firing system components that are utilized by a top US Government prime contractor. The program will be fulfilled at IEC's Albuquerque facility.

Register now for PCB West, the Silicon Valley's largest trade show for the printed circuit industry, taking place Sept. 13-15 in Santa Clara: pcbwest.com

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