Nortech Systems Incorporated (NASDAQ: NSYS) today reported net sales of $28.0 million for the second quarter ended June 30, 2012, compared with net sales of $27.8 million for the second quarter of 2011. Operating income for the second quarter of 2012 was $319,000, compared with $339,000 for the second quarter of 2011.
The company reported net income of $126,000, or $0.05 per diluted common share for the second quarter of 2012, compared with $146,000, or $0.05 per diluted common share, for the second quarter of 2011.
For the six months ended June 30, 2012, Nortech Systems reported net sales of $56.4 million, compared with $56.8 million for the same period in 2011. Operating income for the first six months of 2012 was $647,000, compared with $626,000 for the same period in 2011.
Net income for the six-month period ended June 30, 2012, was $249,000, or $0.09 per diluted common share. This compares with net income of $264,000, or $0.08 per diluted common share, reported for the same period in 2011, before a non-operating gain related to its latest acquisition. With the non-operating gain, the company reported net income of $772,000, or $0.28 per diluted common share, for the first six months of 2011.
“Our revenue results show stability while facing ongoing economic headwinds,” said Mike Degen, Nortech Systems’ president & CEO. Analysts covering the EMS industry have described the 2012 outlook as “uncertain” and “lacking direction”, without any clear, industry-defining trends. Growth forecasts are mixed, echoing the diverse signals Nortech Systems is receiving from its broad customer base.
“In the short-term, however, we’re carrying excess capacity that impacts our profitability,” Degen stated. “Strategically, we’ve positioned ourselves for long-term growth through synergistic acquisitions and efficiency improvements.” He added that Nortech remains committed to executing business fundamentals and leveraging its resources prudently in light of customer demand.