MINNEAPOLIS -- Nortech Systems reported second quarter revenue of $32.5 million, up 7.7% compared to 2021.
For the period ended June 30, the EMS company reported gross profit grew 40% to $5 million and net income was up 304% to $720,000.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) grew more than 70% to $1.5 million. Gross margin was 15.4%, up 3.5 percentage points.
Quarter-end backlogs, at $106.2 million, were up nearly 50% compared to the backlog as of Jun. 30, 2021, with strong growth across all markets.
“Our strong second quarter improvements are significant, particularly in light of healthy 2021 comparisons,” said Jay D. Miller, chief executive and president. “These solid results are a credit to all our Nortech team members. We are focused on supporting our strategic medical, industrial, and defense customers with mission-critical solutions in a very complex business environment.
“We are encouraged by continued demand growth across these markets, evidenced by our record backlog,” added Miller. “Currently the dominant concern of many customers is supply-chain reliability, so our end-to-end fulfillment solutions and collaborative supplier relationships combine to offer a particularly strong value proposition. We are fortunate to have many long-term, loyal customers and responsive suppliers. Many of these relationships have endured for decades through various economic cycles.”
“Looking ahead, we are optimistic about the second half of the year,” said Miller. “Our healthy backlog indicates demand well past December and shows no signs of diminishing. Sales growth and selective pricing actions should drive modest margin expansion for the remainder of 2022. We also expect improved, positive cash flow in the third and fourth quarters. Finally, we anticipate contributions from new cable technologies as we move into 2023.
“Our employees, management team, and board of directors have built a solid foundation for growth in 2022 and beyond. Everyone is committed to executing on our fundamentals: continuous improvement and operational excellence in all facets of our global business, striving to provide world-class quality, on-time delivery, and competitive pricing.
“We continue to strengthen our core business through various initiatives, including leveraging our team members’ customer-specific expertise to provide innovative fulfillment solutions for sophisticated low-volume/high-mix contract manufacturing services. Our program management, engineering support, and innovation capabilities are also valuable to both established customers and startups,” he said.
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