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IEC shares fall after Q4 loss on charge

Rochester Business Journal
December 19, 2013

IEC Electronics Corp. Thursday reported a multimillion dollar fourth-quarter loss, due largely to a goodwill impairment charge related to its Southern California Braiding Co. operation.

The Newark, Wayne County, firm posted a net loss of $8.7 million, or 89 cents a diluted share, versus a profit of $1.6 million, or 16 cents a diluted, a year ago. This year’s results included a $14 million impairment charge at Southern California Braiding.

Sales were up to $39 million—the company’s highest quarterly revenue figure in more than a decade—from $37 million a year ago.
 
For fiscal 2013, IEC reported a net loss of $9.5 million, or 98 cents a diluted share, compared with net income of $6.7 million, or 67 cents a share, last year. It logged sales of $141 million, down from $145 million.

Chairman and CEO Barry Gilbert said the company took non-cash impairments of goodwill and intangible assets at Southern California Braiding, and reconfigured its operations, which included a reduction in personnel and expenses, as well as moving some operations there to its business unit in Albuquerque, N.M.

IEC acquired SCB, which supplies wire and cable products to the military and defense market, in 2010 for some $25 million.

“The SCB acquisition has not met our expectations and has been a disappointment from a profitability, growth and cash flow perspective,” Gilbert said, in a statement “We are confident of the future, however, it remains difficult to forecast the current political environment.

The company expects sales for the first six months of fiscal 2014 to be relatively flat.
 
Shares of IEC stock (NYSE MKT: IEC) were down more than 6 percent midday Thursday at $4.05.

(c) 2013 Rochester Business Journal. To obtain permission to reprint this article, call 585-546-8303 or e-mail service@rbj.net.
 






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