Global Sourcing Spotlight: How to Evaluate Supplier Capabilities Worldwide
The Knowledge Base: Cultivating Your Brand in the Age of Connection
SMT Perspectives and Prospects: Warren Buffett’s Perpetual Wisdom, Part 2
Nortech Systems Reports Sales of $26M in Q1
May 14, 2018 | Nortech SystemsEstimated reading time: 2 minutes
Nortech Systems Incorporated reported net sales of $26.4 million for the first quarter ended March 31, 2018, which includes $0.7 million of revenue recognized under new FASB accounting guidelines adopted this fiscal year. On a pro forma basis to adjust for this change in accounting guidance, first quarter sales of $25.7 million increased $0.2 million sequentially from the fourth quarter of 2017 while net sales for the first quarter of 2017 were $28.3 million.
Nortech reported an operating loss of $120,000 for the first quarter of 2018. This compares with operating income of $121,000 for the first quarter of 2017, which included a one-time gain of $354,000 on the sale of the company’s Wisconsin facility. Excluding the one-time gain, the operating loss in the first quarter of 2017 would have been $233,000, and the first quarter 2018 operating results would have represented an improvement of $113,000 over the adjusted 2017 level, on $2.6 million lower revenue on a pro forma basis.
The company reported a net loss of $391,000, or $0.14 per diluted common share, for the first quarter of 2018, compared with a net loss of $15,000, or $0.01 per diluted common share, for the 2017 period that reflected the gain on the facility sale. Nortech recognized income tax expense for the first quarter of 2018 despite the operating loss, as a result of foreign operations and related minimum taxes generated from the recently enacted U.S. tax reform.
“Our first quarter revenue came in as expected, up slightly from the fourth quarter,” said Rich Wasielewski, Nortech Systems’ president and CEO. “Industrial sales were aided by the improving economy, while defense sales continue to benefit from increased defense spending.” He added, “Medical sales were still impacted by several major customers working through their high inventory, but the medical market led our backlog improvements during the quarter and we expect its recovery to continue throughout the year.” Total 90-day backlog was up 13 percent from the start of the quarter.
“We are pleased with the improvement in our gross profit and operating income, resulting from adjustments in our spending and cost structure to match demand levels, and in generating positive operating cash flow in the quarter,” concluded Wasielewski. “Looking ahead, the improving medical backlog is expected to provide the needed revenue to return to profitability in the second half of the year.”
About Nortech Systems Incorporated
Nortech Systems, based in Maple Grove, Minn., is a full-service electronics manufacturing services (EMS) provider of complex interconnect solutions, printed circuit board assemblies and diagnostic repair and integration services including higher-level assemblies and box builds for a wide range of industries. Markets served include industrial and commercial equipment, medical device, and aerospace & defense. Nortech has a range of specialized, high-tech facilities in the U.S., Latin America and Asia used for customized design, manufacture, testing and repair of its solutions. Nortech Systems is traded on the NASDAQ Stock Market under the symbol NSYS. www.nortechsys.com
Share on:
Testimonial
"We’re proud to call I-Connect007 a trusted partner. Their innovative approach and industry insight made our podcast collaboration a success by connecting us with the right audience and delivering real results."
Julia McCaffrey - NCAB GroupSuggested Items
Coherent Announces Agreement to Sell Aerospace and Defense Business to Advent for $400 Million
08/15/2025 | AdventCoherent Corp., a global leader in photonics, today announced that it has entered into a definitive agreement to sell its Aerospace and Defense business to Advent, a leading global private equity investor, for $400 million. Proceeds will be used to reduce debt, which will be immediately accretive to Coherent’s EPS.
KYZEN Partners with LPW to Elevate High Purity Cleaning with Cutting-Edge Cyclic Nucleation Technology in North America
08/13/2025 | KYZEN'KYZEN, a global leader in advanced cleaning solutions, has reached a major milestone in high-purity cleaning with the addition of a state-of-the-art Vacuum Cyclic Nucleation System at its North American Application Lab.
Jeh Aerospace Raises $11M to Boost Aircraft Supply Chain
08/12/2025 | I-Connect007 Editorial TeamJeh Aerospace, the high-precision aerospace and defense manufacturing startup founded by Vishal Sanghavi and Venkatesh Mudragalla, has raised $11 million in a Series A round led by Elevation Capital, with support from General Catalyst, to scale its commercial aircraft supply chain manufacturing in India, according to OEM.
New Frontier Aerospace and Air Force Institute of Technology Sign CRADA to Advance Hypersonic VTOL Aircraft
08/05/2025 | PR NewswireNew Frontier Aerospace (NFA) is excited to announce a Collaborative Research and Development Agreement (CRADA) with the Air Force Institute of Technology (AFIT) aimed at advancing an innovative rocket-powered hypersonic Vertical Takeoff and Landing (VTOL) aircraft.
Honeywell Advances Technology That Lets Fighter Pilots Breathe Easier for Peak Performance
08/04/2025 | HoneywellHoneywell has developed and launched a new technology that allows military pilots of high-performance fighter jets to breathe easier under extreme conditions.