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IEC Announces Fiscal 2020 Second Quarter Results
May 7, 2020 | IEC Electronics Corp.Estimated reading time: 3 minutes
IEC Electronics Corp. has announced results for the fiscal 2020 second quarter and six months ended March 27, 2020.
IEC reported revenues of $44.2 million for the second quarter of fiscal 2020, an increase of 18.4% as compared to revenues of $37.3 million for the second quarter of the year ended September 30, 2019 (“fiscal 2019”). Gross profit for the second quarter of fiscal 2020 was $5.5 million, or 12.5% of sales, compared to gross profit of $4.6 million, or 12.3% of sales in the second quarter of fiscal 2019. Selling and administrative expenses were $3.2 million in the second quarter of fiscal 2020, or 7.3% of sales, as compared to $3.3 million, or 8.9% of sales, in the second quarter of fiscal 2019. Operating income was $2.3 million for the second quarter of fiscal 2020, an increase of 81.7% when compared to the same quarter in the prior fiscal year. The Company reported net income of $1.5 million, or $0.15 per basic and $0.14 per diluted share for the second quarter of fiscal 2020, compared to net income of $0.7 million, or $0.06 per basic and diluted share in the second quarter of fiscal 2019.
For the first six months of fiscal 2020, the Company reported revenues of $88.9 million, an increase of 22.2% as compared to revenues of $72.7 million for the first six months of fiscal 2019. Gross profit for the first six months of fiscal 2020 was $10.7 million, or 12.1% of sales, which includes the negative impact of a one-time inventory reserve of $1.0 million related to a reorganization at one of the Company’s customers in the medical sector, compared to gross profit of $9.6 million, or 13.3% of sales in the first six months of fiscal 2019. Selling and administrative expenses were $6.5 million in the first six months of fiscal 2020, or 7.3% of sales, as compared to $6.7 million, or 9.2% percent of sales, in the first six months of fiscal 2019. Operating income was $4.2 million for the first six months of fiscal 2020, an increase of 42.5% when compared to the same period in the prior fiscal year. The Company reported net income of $2.7 million, or $0.26 per basic and $0.25 per diluted share for the first six months of fiscal 2020, compared to net income of $1.7 million, or $0.17 per basic and $0.16 per diluted share in the first six months of fiscal 2019. Adjusted for the impact of a one-time inventory reserve, taken in the first quarter of fiscal 2020, adjusted net income per common share would have been $0.34 per basic and $0.32 per diluted share for the six months ended March 27, 2020. Please see the reconciliation tables included in this release for further information regarding these non-GAAP measures.
Jeffrey T. Schlarbaum, President and CEO of IEC Electronics commented, “Our second quarter results continued the momentum built over the past few quarters. We reported solid revenue growth of 18% compared to last fiscal year’s second quarter and significantly improved profitability. Our book to bill ratio was strong at 1.5:1 and notably, we are generating bookings from an increasingly expanded and diverse base of customers. As our reputation as a premier provider of vertically integrated manufacturing solutions for mission critical and life-saving electronics continues to grow, we are attracting new projects from existing customers, taking market share away from fellow competitors, as well as winning new business awards from new customers.
“As our country continues to adapt to the health, safety and economic implications of the COVID-19 pandemic, as an essential employer, we have undertaken definitive precautions to ensure the health and safety of our employees while balancing the important role we serve fulfilling critical demands for the customers we serve. Importantly, we have deliberately maintained a 100 percent U.S. manufacturing footprint, which we believe makes us an increasingly attractive supply option for existing and potential customers given current and anticipated future trade complications associated with the COVID-19 pandemic.”
Mr. Schlarbaum concluded, “We continue to strengthen our capabilities to meet the highly complex manufacturing requirements of our customers and our new business pipeline is strong. We remain on track to open our new state-of-the-art facility this summer and believe we are well positioned to increase our market share to drive sustained organic revenue growth and profitability as we move through the back half of fiscal 2020.”
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