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IEC Electronics Corp. on Monday reported preliminary estimated second-quarter financial results and said it has not been able to finalize the results due to the need to restate its fiscal 2012 numbers.
The announcement hurt the company’s stock, with shares of IEC (NYSE MKT: IEC) trading midday Monday near $4.16, down nearly 15 percent from Friday’s close of $4.87.
For the quarter, the Newark, Wayne County, firm reported a preliminary estimated net loss of $1.1 million, compared with net income of $2.5 million a year ago.
As a result, IEC initiated cost-cutting measures, including reductions in labor and overhead, officials said. IEC did not say how many positions were affected, only that the cuts were nationwide.
Sales were down $4.3 million to $33.7 million. The company reported sales decreases in the medical, industrial and communications sectors, which were offset somewhat by increased sales in the military and aerospace markets.
"Operationally, this was a very difficult quarter,” CEO Barry Gilbert said. “While revenues were slightly higher than the first quarter, we realized lower revenue compared to last year coupled with higher costs.”
The quarter also coincided with the restatement of its finances, which Gilbert expects to be completed within 45 days.
“We understand the importance of remaining focused on the growth and profitability of the business as we complete the work related to the restatement process, and are encouraged that during (the quarter), the company added new customers," he said.
The company said since it is not now filing its quarterly report and has not completed the restatement process, the conference call scheduled for Tuesday morning has been cancelled.
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