© nickondr dreamstime.com Electronics Production | May 08, 2015
Nortech Systems: Sales stay stable
Nortech Systems reported net sales of USD 26.5 million for the first quarter ended March 31, 2015, compared with USD 26.1 million in the first quarter of 2014.
"We're pleased our quarterly sales increased 1.5 percent year over year despite continued macroeconomic challenges impacting some of our larger global customers," said Rich Wasielewski, Nortech Systems' president and CEO. "Our largest market – industrial – showed strong revenue growth, increasing 17 percent." The company's 90-day backlog rose six percent since Dec. 31, 2014. Nortech reported an operating loss of USD 202,000 for the first quarter of 2015, compared with operating income of USD 236,000 for the same period in 2014. The net loss for the first quarter of 2015 was USD 193,000; this compares with net income of USD 86,000 for the first quarter of 2014. "After finishing 2014 strong, our first-quarter profitability was impacted by a number of factors," noted Wasielewski. "These included our product mix, ramp-up costs for new programs and global economic conditions. We're adjusting our cost structure to better match our short-term demand and business conditions, which we see continuing into the second quarter. We remain committed to business development spending that stimulates top-line growth and strategic initiatives that strengthen Nortech." These initiatives include adding printed circuit board assembly capabilities to Nortech's Mexico facility and expanding into Asia. "We expect to start realizing the benefits of these initiatives and activities in the second half of 2015," he explained.