-
- News
- Books
Featured Books
- smt007 Magazine
Latest Issues
Current IssueComing to Terms With AI
In this issue, we examine the profound effect artificial intelligence and machine learning are having on manufacturing and business processes. We follow technology, innovation, and money as automation becomes the new key indicator of growth in our industry.
Box Build
One trend is to add box build and final assembly to your product offering. In this issue, we explore the opportunities and risks of adding system assembly to your service portfolio.
IPC APEX EXPO 2024 Pre-show
This month’s issue devotes its pages to a comprehensive preview of the IPC APEX EXPO 2024 event. Whether your role is technical or business, if you're new-to-the-industry or seasoned veteran, you'll find value throughout this program.
- Articles
- Columns
Search Console
- Links
- Events
||| MENU - smt007 Magazine
Nortech Systems Announces Q2 2021 Results
August 13, 2021 | Business WireEstimated reading time: 2 minutes
Nortech Systems Incorporated, a leading provider of engineering and manufacturing solutions for complex electromedical and electromechanical products serving the medical, aerospace & defense and industrial markets, reported net sales of $30.2 million for the quarter ended June 30, 2021, an increase of 36.7% compared to $22.1 for the first quarter of 2021 and an increase of 14.0% compared to $26.5 million for the second quarter of 2020. The revenue improvement was primarily due to higher production volume resulting from actions to scale the direct labor workforce and strengthen the supply chain for parts. Gross margin for the second quarter of 2021 was 11.9% compared to 7.1% in the first quarter of 2021, an improvement of 4.8 percentage points.
Higher margin was primarily due to greater production output from the Company’s global manufacturing operations. Net income for second quarter 2021 was $0.2 million and $0.06 per diluted share compared to a net loss of ($1.5) million and ($0.58) per diluted share for the first quarter of 2021. Adjusted EBITDA was $1.0 million for the second quarter 2021 compared to adjusted EBITDA loss of ($1.5) for the first quarter 2021. Adjusted EBITDA excludes one-time restructuring expenses related to relocating manufacturing operations from its plant in Merrifield, Minnesota to its printed circuit board (PCB) center of excellence in Mankato, Minnesota. The Company incurred $77 thousand in restructuring expenses in the second quarter of 2021 and $296 thousand for the year-to-date fiscal 2021.
"Nortech rebounded significantly in the second quarter of 2021. We have been taking aggressive action to overcome COVID-related obstacles. We’re continuing to address supply chain bottlenecks to find creative ways to build and ship mission-critical parts to our medical, military, and industrial customers. We have a large $72 million customer backlog and we’re 100% focused on operations execution to increase production output throughout the remainder of 2021 and into 2022.” stated Jay D. Miller, Chief Executive Officer and President.
In May 2021 Nortech announced that it planned to apply for the Employee Retention Credit (“ERC”) to support ongoing investment in Nortech’s frontline workforce to drive increased manufacturing output to meet our customers’ rising demand. If this action is successful, the Company estimates the ERC will total approximately $5 million in fiscal 2021. As of July 2021, the Company has filed for half of the ERC and expects to file for the second half in Q3 2021. The Company has not received funds as of the date of this press release.
As previously disclosed, in April 2020 Nortech participated in the Paycheck Protection Program (“PPP”) under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”). In July 2021 Nortech submitted its application for PPP loan forgiveness to the Small Business Administration (“SBA”).
"The PPP and ERC programs were key factors in helping us retain our workforce during the COVID-19 downturn. As demand recovered in early 2021, we were better prepared to return the Company to profitability in Q2 2021.” stated Jay D. Miller, Chief Executive Officer and President.
Suggested Items
BAE Systems and Eaton Expand Collaboration to Deliver Electric Drive Solutions for Heavy-Duty Trucks
05/08/2024 | PRNewswireBAE Systems, a leader in electric propulsion, and Eaton, a global power management company, are expanding their collaboration to include electric vehicle (EV) solutions for heavy-duty trucks.
OSI Systems Receives $6 Million Order for Electronic Assemblies
05/08/2024 | BUSINESS WIREOSI Systems, Inc. announced that its Optoelectronics and Manufacturing division has received an order for approximately $6 million to provide electronic assemblies to an advanced engineered solutions OEM.
Industrial PC Market Size to Record $1.75 Billion Growth from 2023-2027
05/03/2024 | PRNewswireThe global industrial pc market size is estimated to grow by USD 1.75 billion from 2023 to 2027, according to Technavio. This growth is expected to occur at a Compound Annual Growth Rate (CAGR) of almost 6.29% during the forecast period.
Real Time with… IPC APEX EXPO 2024: Sigma Engineering's Recycling and Regeneration Systems for PCB Etching
05/02/2024 | Real Time with...IPC APEX EXPOEvan Howard of Schmoll America interviews Kristoffer Bjorklund, Sigma Engineering's supply chain manager. We learn about Sigma's recycling and regeneration systems for PCB industry etching and the benefits and challenges of implementing these systems in existing factories.
QinetiQ Achieves UK’s First Jet-to-Jet Teaming Between Aircraft and Autonomous Drone
04/29/2024 | QinetiQQinetiQ has successfully trialled the UK’s first Crewed-Uncrewed-Teaming demonstration between a crewed aircraft and an autonomous jet drone.