Nortech Systems optimistic about 2013

Income from operations for the first quarter of 2013 was USD 224'000 after an impairment charge of USD 74'000 on a building being held for sale. This compares with USD 328'000 for the same period in 2012. Net income for the first quarter of 2013 was USD 141'000, and was favorably impacted by the reinstatement of the research and development tax credits. This compares with USD 123'000 reported for the same period in 2012. “Our ongoing productivity improvements, including initiatives in automation and lean manufacturing, helped drive our profitability in the quarter as we saw our gross profit percentage increase 190 basis points versus the first quarter of 2012,” said Mike Degen, Nortech Systems’ chief executive officer. “We’re continuing to watch costs and manage expenses carefully while waiting for further strengthening in the domestic and global economies,” Degen added. He noted that the company’s 90-day backlog increased 11 percent during the quarter, led by defense and medical customers. He considers this positive indicator – the first double-digit backlog increase in more than 18 months – as a reason for optimism for fiscal 2013. “Our continued investments in business development and operations position us to deliver stronger results when demand improves and we can fully utilize our capacity,” Degen concluded.