Winland Electronics, Inc. Reports Third Quarter 2010 Results
Winland Electronics, Inc. (AMEX: WEX), a leading designer and manufacturer of custom electronic control products and systems, today announced net sales of $4.4 million for the third quarter ended September 30, 2010, down $744,000, or 14.5 percent compared with the corresponding period in 2009. The company reported a net loss of $305,000, or $0.08 per share versus a net loss of $695,000, or $0.19 per share in the comparable quarter in 2009.
EMS sales for the quarter totaled $3.5 million versus $4.2 million in the third quarter of 2009, a decline of 16.3 percent. Net sales for Winland’s Proprietary Products segment for the quarter totaled $838,000 a decline of 6.3 percent in the comparable period in 2009.
“Winland’s third quarter operating performance primarily reflects declines in sales to our three largest customers totaling $1,242,000. This was due to the delayed availability of a primary electronic component for our largest customer, a postponement in the launch of significant new product by our second largest customer, and reduced end-user demand by our third largest customer,” said Thomas de Petra,Winland’s President and Chief Executive Officer. “We continue to make progress in diversifying our revenue base and adding new customers. Unfortunately, sales to these accounts were not sufficient to offset the trends with our established customers.”
The company recorded an operating loss for the quarter of $356,000 versus an operating loss of $667,000 in the comparable quarter in 2009. Gross margin totaled 8.7 percent versus 5.7 percent in the comparable period in 2009. The company reported an operating loss of $86,000 in its EMS business for the quarter versus an operating loss of $227,000 in the comparable period in 2009. The company’s Proprietary Products business recorded an operating profit of $170,000 versus an operating profit of $171,000 in the second quarter of 2009.“We continue to work our way through a difficult transition period from a more concentrated customer base to a more diversified and profitable mix of business. During that time we’ve worked hard to reduce our operating costs and to run our business more efficiently,” de Petra said. “We’re pleased with the results of our efforts to lower our break-even point in spite of the challenges at the top line.”
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