IEC Rebounds to Profit But on Lower Sales
The EMS provider reversed a net loss of $1.15 million for the same quarter a year ago. Revenue fell sharply for the period ended July 1, from $6.2 million last year.
W. Barry Gilbert, chairman and CEO, said, "Rebuilding our sales base and developing a steady stream of top line growth is our top priority. Our new prospect portfolio continues to stay strong and our manufacturing representatives continue to present us with excellent opportunities. Operationally we continue to gain strength. We have ample working capital, an unused credit facility to support our new customer activities
Long-term debt is less than $800,000, down from over $20 million three years ago.
For the quarter, IEC took $65,000 in restructuring costs due to severance of 14 employees, a move expected to save the company $380,000 annually.
IEC's five largest customers accounted for 72% of sales for the nine months ended July 1, down from 81% of sales in the comparable period in 2004.
