Nortech Systems Incorporated (NASDAQ: NSYS) today reported net sales of $29.0 million for the first quarter ended March 31, 2011, an increase of 33 percent over net sales of $21.7 million for the first quarter of 2010.
Net income for the first quarter of 2011 was $626,188, or $0.23 per diluted common share, which includes a non-operating gain, net of tax, of $528,007, or $0.19 per diluted common share, from the January acquisition of certain assets associated with the EMS operations of Winland Electronics, Inc. In the first quarter of 2010, Nortech reported net income of $95,284, or $0.03 per diluted common share.
“We’re pleased to report a solid increase in quarterly revenue, both from organic growth and our recent acquisitions,” said Mike Degen, Nortech Systems’ president and CEO. Of the $7.3 million quarterly revenue increase over the first quarter of 2010, Degen noted that 75 percent, or $5.5 million, was attributed to Nortech’s acquisitions in the past year – medical device operations in Milaca, Minn., and EMS operations in Mankato, Minn.
“We targeted these acquisitions for long-term profitable growth,” Degen explained. “In the short term, however, we’re absorbing costs associated with integrating them into our company.” He added that quarterly comparative results also reflect the reinstatement of wages, benefits and incentive programs in the second half of 2010.“Nortech’s people remain our most valuable asset,” concluded Degen. “As our recovery continues, we were gratified to reward our employees’ dedication to delivering excellence for all our customers.” Conference Call Nortech Systems announces a conference call to be held at 10:00 a.m. (CDT) on Thursday, May 12, to discuss the company’s first quarter results. Anyone interested in participating in the conference can access the call by dialing 877-407-8033 from within the United States, or 201-689-8033 if calling internationally. An audio webcast and replay of this conference call can be accessed at the investor relations portion of Nortech Systems’ website at www.nortechsys.com or at www.investorcalendar.com. A podcast (MP3 download) will also be available. The telephone replay will be available through May 26, 2011, by dialing 877-660-6853 (from U.S.) or 201-612-7415 (International). To access the replay, the account number 286 and conference ID 371980 are both required. About Nortech Systems Incorporated Nortech Systems Incorporated ( www.nortechsys.com), based in Wayzata, Minn., is a full-service electronics manufacturing services (EMS) provider of wire and cable assemblies, printed circuit board assemblies, and higher-level complete box build assemblies for a wide range of industries. Markets served include industrial equipment, aerospace/defense and medical. The company has manufacturing capabilities and operating partners in the U.S., Asia and Latin America. Nortech Systems Incorporated is traded on the NASDAQ Stock Market under the symbol NSYS. Forward-Looking Statements This press release contains forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. While this release is based on management’s best judgment and current expectations, actual results may differ and involve a number of risks and uncertainties. Important factors that could cause actual results to differ materially from the forward-looking statements include, without limitation: volatility in market conditions which may affect market supply of and demand for the company’s products; increased competition; changes in the reliability and efficiency of operating facilities or those of third parties; risks related to availability of labor; commodity and energy cost instability; general economic, financial and business conditions that could affect the company’s financial condition and results of operations; as well as risk factors listed from time to time in the company’s filings with the SEC.
|Condensed Statements of Income|
|Three months ended Mar. 31,|
|Income from Operations||286,662||325,782|
Income Tax Expense
|Net Income Per|
|Basic and Diluted|
|Number of Common|
|Shares – Basic and|
Condensed Balance Sheets
|March 31, 2011||Dec. 31, 2010|
|Property and Other Long-term Assets||10,023,282||8,092,928|
| Total Liabilities and Shareholders’