IEC Electronic Corp. on Friday posted an increase in fourth-quarter sales, but a drop in net income as the Newark, Wayne County, firm continues to rebuild after a year that included many changes, including the divestiture of one of its subsidiaries and the replacement of its CEO.
Net income for the fourth quarter, which ended Sept. 30, was $200,000, or 2 cents a share, compared with net income of $1 million, or 10 cents a share, for the fourth quarter a year ago.
The company logged net sales of $33.9 million, up 7.4 percent from $31.6 million.
Net income from continuing operations was $800,000, or 8 cents a share, compared with net income from continuing operations of $1.4 million, or 14 cents a share, in the same prior year period.
During the fourth quarter of fiscal 2014, the company recorded a benefit of some $1.3 million, net of expenses, in connection with its resolution of directors’ and officers’ liability insurance claims.
Loss from discontinued operations, which includes results of the sale and activity related its Southern California Braiding operation, was $700,000, or a 7 cents a share, compared with a net loss of $400,000, or 4 cents a share, for the same period in fiscal 2014.
"Our fourth quarter results reflect the continuing progress of our turnaround efforts,” said Jeffrey Schlarbaum, IEC president and CEO, in a statement. “To date, we’ve broken through many of the headwinds we faced earlier in the year and we remain focused on restoring the confidence of our customers, rebuilding operational excellence and driving improved profitability.”
Schlarbaum was named to the top spot in February, succeeding Barry Gilbert, who was terminated following a shake-up at the company led by its largest shareholder, Vintage Capital Management LLC.
The Florida-based firm had said last year it was displeased with IEC’s recent performance and introduced its own board of directors to be voted on at the firm’s annual shareholder’s meeting in January. The alternative slate was elected.
Schlarbaum previously served as IEC’s president, but he left in 2013. He is also now a director.
Following the close of the fourth quarter, IEC began engaging in discussions, and has subsequently reached a preliminary understanding with the Securities & Exchange Commission regarding a potential settlement of its investigation of the company’s restatement of its consolidated financial statements for the fiscal year ended Sept. 30, 2012 and the quarter ended Dec. 28, 2012.
As part of the proposed settlement, IEC would pay a penalty of $200,000. This penalty has been accrued fully for in the fourth quarter of fiscal 2015. The understanding is still preliminary and is subject to change by the SEC, IEC reported.
For the year, IEC logged sales of $127 million, up 5.1 percent from sales of $120.8 million a year ago.
Net loss for the year was $10.2 million, or $1.01 a share, compared with a net loss of $15.1 million, or $1.53 a share, in fiscal 2014.
Net loss from continuing operations for the year was $3.8 million, or 37 cents a share, compared with a net loss from continuing operations of $14.6 million, or $1.49 a share, in the previous year. Loss from discontinued operations was $6.4 million, or 64 cents a share, compared with a net loss of $400,000, or 4 cents a share, in fiscal 2014.
IEC also announced that prior to the close of the quarter it had extended the maturity date of its revolving credit facility from Jan. 18, 2016, to Jan. 18, 2018.
IEC ranked 14th on the most recent Rochester Business Journal list of manufacturers.
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