Nortech Systems increases sales in second quarter with new medical business
Electronics manufacturing services (EMS) provider Nortech Systems Incorporated posted net sales of US$ 30.1 million for the second quarter ended June 30, 2017, a 4% increase over net sales of US$ 28.9 million for the second quarter of 2016. For the six months ended June 30, 2017, Nortech Systems’ net sales rose slightly to US$ 58.5 million, up from net sales of US$ 57.9 million for the same period in 2016.
For the second quarter of 2017, Nortech Systems reported operating income of US$ 95,000, an improvement of US$ 205,000 compared with the prior-year period loss. For the first six months of 2017, Nortech Systems reported operating income of US$ 215,000, compared with US$ 111,000 for the same period last year.
Net loss for the second quarter totaled US$ 16,000, or US$ 0.01 per diluted common share, compared with a net loss of US$ 180,000, or US$ 0.07 per diluted common share, for the same period last year. For the six months ended June 30, 2017, Nortech Systems reported a net loss of US$ 30,000, or $0.01 per diluted common share. This compares with a net loss of US$ 117,000, or US$ 0.04 per diluted common share, for the first six months of 2016.
“Our second quarter revenue increased both year over year and sequentially, led again by medical sales,” said Rich Wasielewski, Nortech Systems’ president and CEO. “We continue building on our strategies of growing our medical business and globalization to meet our customers’ needs regionally – in the United States, Mexico and China.”
Nortech Systems currently operates ten locations in Minnesota, Wisconsin, Mexico (Apodaca, Nuevo Leon) and eastern China. All sites provide valued electro-mechanical contract manufacturing, engineering, and aftermarket services.
The company supplies wire and cable assemblies, printed circuit board assemblies, and higher-level complete box build assemblies for a wide range of industries. Markets served include industrial, medical and aerospace/defense.
During the second quarter, Nortech announced a new commercial banking agreement with Bank of America Merrill Lynch, providing a new credit facility of up to US$ 21 million with an additional US$ 20 million accordion feature. Also in the second quarter, Nortech named Matt Mahmood its new Chief Operating Officer; he brings a strong background in global manufacturing, metric-driven management, continuous improvement and automation.