NEWARK, NY – IEC Electronics Corp. announced revenue for the fourth quarter was $9.6 million, up 15.6% year-over-year.
Fourth-quarter net income was $296,000, down nearly 16% compared to the same period in 2006.
For 2007, IEC reported net income of $875,000, up 75% year-over-year. Revenue was $40.9 million, an increase of 44.7% compared to 2006.
CEO W. Barry Gilbert said, “The fourth quarter was negatively impacted by significant product design and test issues related to programs from two new customers, and by inefficiencies associated with the influx of recently hired employees. We estimate that the combined effect of these issues on the quarter’s results was approximately $1 million in sales and upwards of $300,000 in pretax earnings, which we hope to recover during the current fiscal year ... We expect the impact of design and test issues on quarterly performance to lessen as we assimilate the new customers’ products and experience revenue growth.
The military and industrial sectors, respectively, represent 36% and 33% of sales for fiscal 2007 compared with 23% and 25% of sales for fiscal 2006.
… we expect our sales to increase by more than 20% and earnings to increase by as much as 70% from fiscal 2007.”