HIALEAH, FL -- Simclar Inc., a electronics contract manufacturer, reported September quarter revenue of $16.6 million, up 25.4% from last year. Net income fell to $242,000 versus $486,000 a year ago.

Excluding the May 1, 2005 acquisition of Simclar (North America), revenue for the quarter would have been $14.9 million, up 11.9%, and net income would have been $353,000.
Simclar chairman Sam Russell said, "The sales trend in the quarter is encouraging, with an increase of 11.9% over the third quarter of 2004, excluding the impact of the acquisition of Simclar NA, with several new contracts benefiting the topline."

Material costs rose compared to 2004, depressing gross margins. Also, interest expense rose over 2004 due to increased borrowing in order to fund the expansion in Mexico and higher interest rates.

"Management still believes that the outlook for the company is good and we expect that sales and profitability for the second half of the year as a whole will increase over the first half of the year, and look forward to strong sales and income growth over 2005 levels in 2006," Russell said.

Simclar has six North American manufacturing locations.

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