IEC announces strong sales results for the 1Q07
Feb 12, 2007
IEC Electronics Corp.announced its results for the first quarter of fiscal 2007, which ended December 29, 2006.
Revenue increased by 150% over Q1 2006
Net Loss for the quarter, including the Mangrove write-off, of $576,000
Continued sales growth expected for fiscal Q2
Revenues increased to $9.2 million for the first quarter of fiscal 2007 as compared with $3.6 million for the first quarter of fiscal 2006. Net Loss for the first quarter of fiscal 2007 was ($576,000) or ($0.07) per share, as compared with net loss of ($48,000), or ($0.01) per share for the first quarter of fiscal 2006.
W. Barry Gilbert, Chairman of the Board and CEO, stated, "Our sales growth continues to gain momentum, and we expect further growth during the balance of this fiscal year. As mentioned in the interim press release we expect to exit the year substantially ahead of last year. We have won two new customers this quarter and anticipate their volume to build over the next six months. Both of these customers have excellent brand recognition in their respective industries.
On January 24th, one of our customers, Mangrove Systems, Inc., a manufacturer of high-end specialty network communication equipment, announced that it was ceasing operations. Our first quarter result includes a $389,000 write-off. Without this one time event, our net loss would have been ($188,000) or ($.02) per share.
We have tripled our manufacturing workforce, adding more than 100 employees during the quarter to support our rapid sales growth. This growth has not come without substantial discomfort. We incurred substantial training and rework costs associated with the integration of new employees into the organization, as they learned how to produce an array of complicated products. We expect productivity levels to steadily improve throughout the balance of the year, as we create an experienced workforce able to support the next phase of our growth.
Mangrove was a small portion of our business and will not impact our revenue growth expectations for the year. The write-off however has impacted our earnings expectation for the year. With that said we still expect to substantially improve our earnings over the previous year"