Nortech Systems Reports Third Quarter Results
MINNEAPOLIS -- November 14, 2012
Nortech Systems Incorporated (NASDAQ: NSYS) today reported net sales of $25.5
million for the third quarter ended Sept. 30, 2012, compared to net sales of
$28.3 million for the third quarter of 2011. Operating income for the third
quarter of 2012 was $329,000, compared to $420,000 for the third quarter of
For the third quarter of 2012, Nortech Systems reported net income of
$105,000, or $0.04 per diluted common share. This compares to net income of
$183,000, or $0.07 per diluted common share, for the third quarter of 2011.
Nortech Systems reported net sales of $81.9 million for the nine months ended
Sept. 30, 2012, compared to $85.1 million for the same period in 2011.
Operating income for the first nine months of 2012 was $976,000, compared to
$1,046,000 reported for the same period in 2011. Net income for the nine-month
period was $354,000, or $0.13 per diluted common share. This compares to
$411,000, or $0.15 per diluted common share, reported for the same period in
2011, before a non-operating gain related to the Winland acquisition. With the
non-operating gain, Nortech reported net income of $955,000, or $0.35 per
diluted common share, for that period.
“Our diverse customer base is a definite strength because each customer is
experiencing the current economic situation differently,” said Mike Degen,
president and CEO of Nortech Systems. “Some appear to be gaining momentum,
while others are still making inventory adjustments or delaying orders.
“We started the year sharing optimism with our customers about a second-half
recovery that is unfortunately not materializing,” Degen noted. “This is
particularly true for many industrial customers -- our largest segment.
“Lower overall sales volume in the quarter impacted our plant utilization and
profitability,” added Degen, explaining that cost reductions and
cost-avoidance initiatives were implemented to better match demand.
Along with reaffirming Nortech Systems’ long-term objectives, Degen emphasized
his company’s ongoing commitment to deliver the right combination of
engineering, manufacturing and supply chain services while continuing to
closely monitor all customers and markets.
Nortech Systems announces a conference call to be held at 10:00 a.m. (CST) on
Thursday, Nov. 15, 2012, to discuss the company’s third quarter results.
Anyone interested in participating in the conference can access the call by
dialing 877-407-8031 from within the United States, or 201-689-8031 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. A podcast (MP3 download)
will also be available. The telephone replay will be available through Nov.
29, 2012, by dialing 877-660-6853 (from U.S.) or 201-612-7415 (International).
To access the replay, the conference ID 401613 is required.
About Nortech Systems, Incorporated
Nortech Systems Incorporated (www.nortechsys.com), based in Wayzata, Minn., is
a full-service electronics manufacturing services (EMS) provider of wire and
cable assemblies, printed circuit board assemblies, and higher-level complete
box build assemblies for a wide range of industries. Markets served include
industrial equipment, aerospace/defense and medical. The company has
manufacturing capabilities and operating partners in the U.S., Asia and Latin
America. Nortech Systems Incorporated is traded on the NASDAQ Stock Market
under the symbol NSYS.
This press release contains forward-looking statements made pursuant to the
safe harbor provision of the Private Securities Litigation Reform Act of 1995.
While this release is based on management’s best judgment and current
expectations, actual results may differ and involve a number of risks and
uncertainties. Important factors that could cause actual results to differ
materially from the forward-looking statements include, without limitation:
volatility in market conditions which may affect market supply of and demand
for the company’s products; increased competition; changes in the reliability
and efficiency of operating facilities or those of third parties; risks
related to availability of labor; commodity and energy cost instability;
general economic, financial and business conditions that could affect the
company’s financial condition and results of operations; as well as risk
factors listed from time to time in the company’s filings with the SEC.
Condensed Statements of Income
Three months ended Nine months ended
September 30 September 30
2012 2011 2012 2011
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Net Sales $ 25,520,963 $ 28,318,158 $ 81,915,222 $ 85,112,931
Income from 328,671 420,138 975,688 1,045,934
Non-Operating - - - 791,615
Other (166,506 ) (139,273 ) (429,792 ) (447,402 )
Income before 162,165 280,865 545,896 1,390,147
Income Tax 57,000 98,000 192,000 435,000
Net Income $ 105,165 $ 182,865 $ 353,896 $ 955,147
per Basic and
Common Share $ 0.04 $ 0.07 $ 0.13 $ 0.35
of Common 2,742,992 2,742,992 2,742,992 2,742,992
Condensed Balance Sheets
Sept. 30, 2012 Dec. 31, 2011
Current Assets $ 34,892,573 $ 37,297,487
Property and Other Long-Term Assets 9,528,541 9,484,656
Total Asset $ 44,421,114 $ 46,782,143
Current Liabilities $ 20,317,200 $ 25,012,055
Long-Term Debt 3,244,225 1,264,295
Shareholders' Equity 20,859,689 20,505,793
Total Liabilities and Shareholders' $ 44,421,114 $ 46,782,143
Nortech Systems Incorporated
Richard Wasielewski, 952-345-2244
Brookside Communications Group
Warren Djerf, 952-920-3908
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