IEC Announces Results for the First Quarter of Fiscal 2014

IEC Announces Results for the First Quarter of Fiscal 2014 
NEWARK, NY -- (Marketwired) -- 02/05/14 --  IEC Electronics Corp.
(NYSE MKT: IEC) announced its unaudited results for the first quarter
of fiscal 2014, ending December 27, 2013.  
The Company reported revenue of $32.1 million for the quarter and net
loss of $1.1 million, or ($0.11) per diluted share. This compares to
revenue in the prior year first quarter of $33.0 million and net loss
of $101 thousand, or ($0.01) per diluted share. During the first
quarter of fiscal 2014, the Company reported restatement and related
expenses of $1.2 million compared to none in the first quarter of
last year.  
W. Barry Gilbert, Chairman of the Board and CEO, stated, "We continue
to rebalance our operations and move forward. The rebalancing
includes repositioning some of the senior management team.
Simultaneously, we continue to invest capital into the company to
improve our operating performance while also making changes to our
overhead structure. The results of this rebalancing are expected to
begin to take effect in the back half of our fiscal year.  
"Our revenues were down slightly. One of our medical customers is on
FDA hold and some of our industrial customers are predicting their
sales will be flat or possibly down this year as compared to last
year. These shifts create mix changes.  
"Previously, we discussed that we were helping a communications
customer resolve some technical design/manufacturing problems. The
issues were resolved and the program has advanced as planned.
However, slower than expected demand this past quarter in the
customer's end market has reduced our volume. Nonetheless, this does
not dampen our optimism that this customer will become a strong
partner moving forward.  
"Our operations in the western half of the United States, which
primarily support our military and aerospace customers, were down
slightly as compared to Q1 of the previous year. Even though we have
important long term agreements in place, we do not have release dates
for some of this work. Importantly, these programs appear to be
relatively insensitive to Congressional budget and debt reduction
issues and we continue to see healthy long term demand from our
military and aerospace customers.  
"We have had a number of difficult quarters as we work through our
issues. However, we are positioned well in solid markets, we have an
extraordinary customer base, and our long term perspective has not
changed; we view our future to be bright."  
Conference Call
 IEC will hold a conference call today, Wednesday,
February 5, 2014 at 10:00 a.m. Eastern Time, to discuss its financial
results for the first quarter ended December 27, 2013.  
The conference call may be accessed in the U.S. and Canada by dialing
toll-free (877) 407-9210. International callers may access the call
by dialing (201) 689-8049.  
A replay of the teleconference will be available for thirty days
after the call and may be accessed domestically by dialing (877)
660-6853 and international callers may dial (201) 612-7415. Callers
must enter conference i.d. number 13575603. 
To access the live webcast, log onto the IEC website at
http://www.iec-electronics.com.  
The webcast can also be accessed at http://www.InvestorCalendar.com.
An online replay will be available shortly after the call. 
About IEC Electronics
 IEC Electronics Corporation is a premier
provider of electronic manufacturing services ("EMS") to advanced
technology companies primarily in the military and aerospace,
medical, industrial and communications sectors. The Company
specializes in the custom manufacture of high reliability, complex
circuit cards, system level assemblies, a wide array of custom cable
and wire harness assemblies, precision sheet metal products, and
advanced research and testing services. As a full service EMS
provider, IEC is a world-class ISO 9001:2008, AS9100 and ISO13485
certified company. The AS9100 certification enables IEC to serve the
military and commercial aerospace markets. The ISO13485 certification
supports the quality requirements of medical device markets. The
Company is also AC7120 Nadcap accredited for electronics
manufacturing to support the most stringent quality requirements of
the aerospace industry, as well as ITAR registered and NSA approved
under the COMSEC standard. Dynamic Research and Testing Laboratories
(DRTL), the Company's newest business unit, is an ISO 17025
accredited laboratory specializing in the testing and detection of
counterfeit electronic parts, as well as component risk mitigation
and advanced failure analysis. IEC Electronics is headquartered in
Newark, NY (outside of Rochester) and also has operations in
Rochester, NY, Albuquerque, NM and Bell Gardens, CA. Additional
information about IEC can be found on its web site at
www.iec-electronics.com.  
This release contains certain statements that are, or may be deemed
to be, forward-looking statements within the meaning of section 27A
of the Securities Act of 1933 and section 21E of the Securities
Exchange Act of 1934, and are made in reliance upon the protections
provided by such Acts for forward-looking statements. These
forward-looking statements (such as when the Company describes what
it "believes", "expects", or "anticipates" will occur, and other
similar statements) include, but are not limited to, statements
regarding future sales and operating results, future prospects, the
capabilities and capacities of business operations, any financial or
other guidance and all statements that are not based on historical
fact, but rather reflect the Company's current expectations
concerning future results and events. The ultimate correctness of
these forward-looking statements is dependent upon a number of known
and unknown risks and events and is subject to various uncertainties
and other factors that may cause the Company's actual results,
performance or achievements to be different from any future results,
performance or achievements expressed or implied by these statements. 
The following important factors, among others, could affect future
results and events, causing those results and events to differ
materially from those views expressed or implied in the Company's
forward-looking statements: business conditions and growth or
contraction in the Company's customers' industries, the electronic
manufacturing services industry and the general economy; variability
of the Company's operating results; the Company's ability to control
its material, labor and other costs; the Company's dependence on a
limited number of major customers; the potential consolidation of the
Company's customer base; availability of component supplies;
dependence on certain industries; variability and timing of customer
requirements; uncertainties as to availability and timing of
governmental funding for the Company's customers; the types and mix
of sales to the Company's customers; the Company's ability to
assimilate acquired businesses and to achieve the anticipated
benefits of such acquisitions; unforeseen product failures and the
potential product liability claims that may be associated with such
failures; the availability of capital and other economic, business
and competitive factors affecting the Company's customers, the
Company's industry and business generally; failure or breach of the
Company's information technology systems; natural disasters; and
other factors that the Company may not have currently identified or
quantified. Additional risks and uncertainties resulting from the
restatement of the Company's financial statements included in the
Company's Annual Report on Form 10-K/A filed with the Securities and
Exchange Commission ("SEC") on July 3, 2013 and in the Company's Form
10-Q/A filed on the same date are described in detail in the
Company's Form 10-K for the fiscal year ended September 30, 2013
filed with the SEC on December 24, 2013 (the "2013 Form 10-K"). Any
one or more of such risks and uncertainties could have a material
adverse effect on the Company or the value of its common stock. For a
further list and description of various risks, relevant factors and
uncertainties that could cause future results or events to differ
materially from those expressed or implied in our forward-looking
statements, see Part I, including the "Risk Factors" and
"Management's Discussion and Analysis of Financial Condition and
Results of Operations" sections, in the 2013 Form 10-K. 
The Company undertakes no obligation to publicly update or correct
any forward-looking statements, whether as a result of new
information, future events, or otherwise. 


 
                                                                            
                                                                            
                   IEC ELECTRONICS CORP. AND SUBSIDIARIES                   
                         CONSOLIDATED BALANCE SHEET                         
                  DECEMBER 27, 2013 AND SEPTEMBER 30, 2013                  
              (in thousands, except share and per share data)               
                                                                            
                                                                            
                                                December 27,  September 30, 
                                                    2013           2013     
                                               -------------  ------------- 
                                                                            
ASSETS                                                                      
Current assets                                                              
  Cash                                                 1,733          2,499 
  Accounts receivable, net of allowance               21,729         27,945 
  Inventories, net                                    21,449         21,904 
  Deferred income taxes                                1,382          1,382 
  Other current assets                                 1,002            610 
                                               -------------  ------------- 
Total current assets                                  47,295         54,340 
                                               -------------  ------------- 
                                                                            
Fixed assets, net                                     19,107         17,946 
Intangible assets, net                                 2,583          2,647 
Goodwill                                               2,005          2,005 
Deferred income taxes                                 12,281         11,652 
Other assets                                             416            345 
                                               -------------  ------------- 
                                                                            
Total assets                                          83,687         88,935 
                                               =============  ============= 
                                                                            
                                                                            
LIABILITIES AND STOCKHOLDERS' EQUITY                                        
                                                                            
Current liabilities                                                         
  Current portion of long-term debt                    2,908          2,778 
  Accounts payable                                    13,295         16,508 
  Accrued payroll and related expenses                 2,040          2,464 
  Other accrued expenses                                 894            811 
  Customer deposits                                    1,199            187 
                                               -------------  ------------- 
Total current liabilities                             20,336         22,748 
                                                                            
Long-term debt                                        32,193         34,026 
Other long-term liabilities                              163            167 
                                               -------------  ------------- 
                                                                            
Total liabilities                                     52,692         56,941 
                                                                            
STOCKHOLDERS' EQUITY                                                        
Preferred stock, $0.01 par value:                                           
  500,000 shares authorized; none issued or                                 
   outstanding                                                              
Common stock, $0.01 par value:                           111            110 
  Authorized: 50,000,000 shares                                             
  Issued:11,046,172 and 11,006,749 shares,                                  
   respectively                                                             
  Outstanding: 10,029718 and 9,991,291 shares,                              
   respectively                                                             
Additional paid-in capital                            43,906         43,802 
Retained earnings                                    (11,582)       (10,483)
Treasury shares at cost - 1,106,454 and                                     
 1,015,458 shares, respectively                       (1,440)        (1,435)
                                               -------------  ------------- 
Total stockholders' equity                            30,995         31,994 
                                               -------------  ------------- 
                                                                            
Total liabilities & stockholders' equity              83,687         88,935 
                                               =============  ============= 
                                                                            
                                                                            
                                                                            
                                                                            
                   IEC ELECTRONICS CORP. AND SUBSIDIARIES                   
                       CONSOLIDATED INCOME STATEMENTS                       
      THREE MONTH PERIOD ENDED DECEMBER 27, 2013 AND DECEMBER 28, 2012      
              (in thousands, except share and per share data)               
                                                                            
                                                                            
                                                    Three Months Ended      
                                               ---------------------------- 
                                                  Dec 27,        Dec 28,    
                                                    2013           2012     
                                               -------------  ------------- 
                                                                (restated)  
                                                                            
Sales                                                 32,138         32,989 
Cost of sales                                         28,528         28,824 
                                               -------------  ------------- 
  Gross profit                                         3,610          4,165 
                                                                            
Operating expenses                                                          
Selling and administrative expenses                    3,791          4,046 
Restatement and related expenses                       1,156              - 
                                               -------------  ------------- 
  Operating profit/(loss)                             (1,337)           119 
                                                                            
Interest and financing expense                           360            279 
Other (income)/expense                                    19              - 
                                               -------------  ------------- 
  Income/(loss) before provision for income                                 
   taxes                                              (1,716)          (160)
                                                                            
Provision for/ (benefit from) income tax                (617)           (59)
                                               -------------  ------------- 
Net income/(loss)                                     (1,099)          (101)
                                               =============  ============= 
                                                                            
                                                                            
                                                                            
Net income/(loss) per common and common                                     
 equivalent share:                                                          
  Basic earnings per share                             (0.11)         (0.01)
  Diluted earnings per share                           (0.11)         (0.01)
                                                                            
Weighted average number of common and common                                
 equivalent shares outstanding:                                             
  Basic                                            9,780,896      9,647,210 
  Diluted                                          9,780,896      9,647,210 

  
Contact: 
Vincent Leo 
CFO 
IEC Electronics Corp. 
(315)332-4308 
VLeo@iec-electronics.com  
John Nesbett or Jennifer Belodeau
Institutional Marketing Services (IMS)
(203)972-9200
jnesbett@institutionalms.com
jbelodeau@institutionalms.com 
 
 
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