Nortech Systems Reports Third Quarter Results
Nortech Systems Inc. has reported net sales of $28.3 million for the third quarter ended September 30, compared with net sales of $29.7 million for the third quarter of 2016. For the nine months ended September 30, Nortech’s net sales were $86.8 million, compared with $87.6 million for the same period in 2016.
Operating income for the third quarter was $284,000, compared with $190,000 for the third quarter of 2016. For the nine-month period, Nortech reported operating income of $500,000, compared with $301,000 for the same period in 2016.
Nortech Systems reported net income in the third quarter of $43,000, or $.02 per diluted common share, compared with $63,000, or $.02 per diluted common share, for the same period last year. For the nine months ended September 30, 2017, Nortech reported net income of $13,000, or $0.00 per diluted common share. This compares with a net loss of $54,000, or $0.02 per diluted common share, for the same period in 2016.
“While our defense and industrial customers are beginning to show positive traction, our third quarter results were impacted by a seven percent decline in medical sales,” said Rich Wasielewski, Nortech Systems’ president and CEO. After a long run of medical growth for Nortech, the recent trends in the medical market, along with program delays, have resulted in less engineering project work and product revenue.
Industry factors negatively impacting U.S. medical technology companies include uncertainty about the future of the federal medical device tax, increased FDA regulations and lower venture capital funding.
Wasielewski expects the medical sector will continue to present challenges through the remainder of 2017 and the first half of next year as several of Nortech’s larger OEM medical customers work down inventory levels.
“Our diverse customer base across three core markets and our globalization strategy remain key strengths,” Wasielewski concluded. “We’re also supporting infrastructure, operations and business development activities to target profitable growth.” Enhancing Nortech’s technical resources, information systems and “One Nortech” cooperation across facilities is aimed at providing better customer service and an improved return to shareholders.
Nortech Systems will hold a conference call at 10:00 a.m. (CST) on Thursday, November 9, 2017, to discuss the company’s third quarter results. Anyone interested in participating in the conference can access the call by dialing 888-567-1602 from within the United States, or 404-267-0373 if calling internationally.
An audio webcast and replay of this conference call can be accessed at the investor relations portion of Nortech Systems’ website at www.nortechsys.com or at www.investorcalendar.com. The telephone replay will be available through November 23, 2017, by dialing 877-481-4010 (from U.S.) or 919-882-2331 (International). To access the replay, the conference PIN# 21831 is required.