IEC Electronics Corp., an electronic manufacturing services provider, today announced its unaudited results for the first quarter of fiscal 2011 ended December 31, 2010.
The company reported revenue of $28.7 million for the quarter, a significant increase compared to the $18.1 million reported in the first quarter of the year prior. Operating income increased to $1.9 million as compared to operating income of $1.3 million the year prior. The company reported net income of $1.0 million, or $0.11 per diluted share, as compared to net income of $754,000, or $.08 per diluted share, for the first quarter of fiscal 2010.
W. Barry Gilbert, chairman of the board and CEO, noted the company’s recent acquisition of Southern California Braiding Inc., though its impact on IEC’s first-quarter earnings was minimal. He also said IEC is confident that 2011 will be a positive year.
“As previously announced, we acquired Southern California Braiding, Inc. (“SCB”) on December 17, 2010. Between December 17 and our quarter end, we incurred approximately $70,000 of transitional start-up expenses. The more time we spend with SCB the more excited we become with the prospects for this acquisition and cross selling opportunities. As it was so near the end of the reporting period, the acquisition had almost no impact on our first quarter results,” Gilbert stated in the press release. “We enjoyed a strong quarter with continued sales, earnings and cash flow growth. During the quarter, we also experienced some challenges introducing a number of new projects while also managing an unusual level of product mix variations, resulting in some temporary inefficiencies amounting to approximately $200,000. With these first quarter inefficiencies behind us we remain confident in our outlook for 2011.”
For the first quarter of 2011, IEC reported earnings before interest, taxes, depreciation and amortization (EBITDA) of $2.4 million, or $0.25 per diluted share, compared to EBITDA of $1.4 million, or $0.15 per diluted share, in the first quarter of 2010.
The company said it views EBITDA as a useful measure of its operating performance because it eliminates the aberrations produced by its net operating loss carryforward (NOL), and enables the investment community to better evaluate long-term profitability and cash flow being generated by the company. IEC reported remaining NOL for federal and state taxes at approximately $33.2 million.
For more information visit www.iec-electronics.com
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