MINNEAPOLIS -- Nortech Systems today reported net sales of $26.4 million for the first quarter ended Mar. 31, up sequentially but down year-over-year.

The results include $700,000 of revenue recognized under new FASB accounting guidelines adopted this fiscal year. On a pro forma basis to adjust for this change in accounting guidance, first quarter sales of $25.7 million increased $200,000 sequentially from the fourth quarter while net sales for the first quarter of 2017 were $28.3 million.

The operating loss was $120,000, versus operating income of $121,000 last year, which included a one-time gain of $354,000 on the sale of the company’s Wisconsin facility. Excluding the one-time gain, the operating loss in 2017 would have been $233,000. The net loss increased to $391,000 from $15,000 a year ago.

“Our first quarter revenue came in as expected, up slightly from the fourth quarter,” said Rich Wasielewski, president and CEO, Nortech Systems. “Industrial sales were aided by the improving economy, while defense sales continue to benefit from increased defense spending.

“Medical sales were still impacted by several major customers working through their high inventory, but the medical market led our backlog improvements during the quarter and we expect its recovery to continue throughout the year.” Total 90-day backlog was up 13% from the start of the quarter.

“We are pleased with the improvement in our gross profit and operating income, resulting from adjustments in our spending and cost structure to match demand levels, and in generating positive operating cash flow in the quarter,” said Wasielewski. “Looking ahead, the improving medical backlog is expected to provide the needed revenue to return to profitability in the second half of the year.”

Register now for PCB West, the largest trade show for the printed circuit and electronics industry in the Silicon Valley! Coming Sept. 11-13 to the Santa Clara Convention Center.

• Prev
• Next