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Nortech Systems records net loss during 2Q19
Nortech Systems Incorporated reported net sales of USD 27.3 million for the second quarter ended June 30, 2019, compared with USD 28.5 million for the second quarter of 2018.
Operating loss for the second quarter of 2019 was USD 1.2 million, which compares with an operating income of USD 0.7 million for the second quarter of 2018. Net loss for the second quarter of 2019 was USD 1.6 million, this compares with a net income for second quarter of 2018 of USD 0.4 million. June 30, 2019 backlog was USD 58.7 million compared to USD 40.1 million on June 30, 2018. “While our second quarter revenue met our expectations, our margins were negatively impacted by a higher mix of customer shipments with low margins and operational inefficiencies incurred managing component shortages,” says Jay D. Miller, president and CEO, in a press release. “We are working closely with our customers and our supplier partners to mitigate lower margin shipments and the effects of component shortages. We expect to deliver on our backlog for the remainder of the year, which is the highest backlog we have had in recent history. Our operating expenses increased compared to prior year while we completed the implementation of our global ERP. Now that our new ERP is in place, we have begun to experience operational efficiencies that we believe will positively impact future periods. We will also no longer expect to invest in our ERP as the same level,” Miller continues.