IEC Swings to Loss on Lower Demand
NEWARK, NY -- IEC Electronics's fiscal second quarter revenues fell 35.5% year-over-year to $21.4 million on lower demand from two key customers.
Sequentially, revenues for the period ended Mar. 31 were consistent with its fiscal first quarter, when it reported sales of $21 million.
The net loss was $600,000, versus net income of $1.5 million in the prior year period. For the period ended Dec. 30, the net loss was $900,000.
Gross profit margin was 10.7%, down from 17.3% last year and up from 8.6% sequentially.
In a statement, CEO and president Jeff. Schlarbaum said, "Our second quarter unfolded largely as we expected, as we continued to experience downward pressure on revenues and profitability related to reduced volume from two of our key customers. As we've previously indicated, the volume contraction is not due to lost programs, but represents the impact of long-term strategic customers, who remain committed manufacturing partners, working through their respective end-market dynamics.
"We're encouraged by the new business development trends that we're seeing and we are increasingly optimistic that volumes will return in the second half of fiscal 2017. Our restructured sales force continues to bolster our presence in our core markets and is efficiently identifying opportunities that best match our capabilities, which is having a positive impact on our sales pipeline. Hence, our pipeline increased during the second quarter and has shown continued growth, with activity from both existing and new customers. Over the past few months of fiscal 2017, we have been diligent about aligning our cost structure to match our business requirements while also retaining skilled labor to ensure that we have the support we need as volumes return. As we have indicated previously, we anticipate that the expected volume ramp in the second half of 2017 will enable us to exit this fiscal year on a path to achieve similar run rate levels to those reached in fiscal 2016."
