News
NEWARK, NY -- IEC Electronics, a publicly held EMS firm,
today reported second quarter net income of $73,000 on sales of $4.7 million.
For the quarter ended April 1, sales dropped 36% year-on-year, due to a decline in orders from two major customers. Net income dropped from $124,000 last year.
In a press statement, chairman and CEO W. Barry Gilbert said, "The business has been restructured delivering solid gross
profits and excellent inventory turns even though our sales reflect
the previously reported loss of Motorola and Teradyne, which
historically were a majority of the company's business."
IEC has cut $1.5 million annually from its overhead during the past
six months, Gilbert added.
The company landed two new accounts that are eventually expected to be worth $6 million to $10
million annually in sales.
Another customer
said it would cease its business with IEC in July and bring its work in-house.
The top five customers accounted for 71% of sales for the quarter, down five points from last year.
For the quarter, IEC took restructuring costs of $41,000.
Revenue rose 20.1% to $305.5 million from $254.3 million last
year. The results beat analysts' consensus of $285 million in sales.
Plexus reported a net profit of $3.5 million a year ago.
Dean Foate, president and CEO, said, "Looking ahead, we remain confident about attaining revenue for the full fiscal year near the high end of our previously announced target range of 15 to 18%, despite the unsettled outlook for key end markets."
Plexus guided for third-quarter revenue of $305 million to
$315 million, and forecasts operating earnings per share of 13 cents to
15 cents.
The company said its bottom line in the fourth quarter should continue to benefit from operational improvements, which will include advancing the new facility in Penang, Malaysia, to a modest profit.
The EMS maker, the third largest in the world, said revenues rose 1% to $2.89 billion, at the low end of previous guidance, while non-GAAP net income was up 9% to $29.3 million. However, it was sunk by one-time charges of $600 million for impairment of goodwill. It was the 18th straight quarter of one-time charges for Sanmina-SCI.
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