EXHIBIT 99.1
Press Release issued by IEC Electronics Corp. dated July 21, 2003
IEC Announces Continued Improvement in its Operating Results and Balance
Sheet for the Third Quarter of 2003
Newark, NY - July 21, 2003 - IEC Electronics Corp. (IECE.OB) announced
today results for the third quarter and first nine months of fiscal 2003, ended
June 27, 2003.
IEC reported net income of $853,000 or $0.10 per share on revenue of $14.0
million for the third quarter. This compares to a net loss of ($6.9) million or
($0.89) per share on revenue of $6.0 million for the same quarter a year ago.
Income from continuing operations was $853,000 or $0.10 per share for the
third quarter. Income from continuing operations was ($1.7) million or ($0.22)
per share for the same quarter a year ago.
IEC's net income for the first nine months of fiscal 2003 was $2.0 million
or $0.25 per share on revenue of $39.1 million. This compares to a net loss of
($12.9) million for the first nine months of fiscal 2002, or ($1.67) per share,
on revenue of $30.7 million. Income from continuing operations was $1.8 million
or $0.23 per share. This compares to a net loss from continuing operations of
($5.2) million or ($0.67) per share for the same period a year ago.
Chairman and Acting CEO W. Barry Gilbert stated, "We continue to make
progress. This was the fourth quarter of improved operational execution. We
continue to aggressively reduce our debt related to our current revolver, term
loans, and notes payable. Last quarter I stated 'we are expecting by the end of
the third quarter to have cash in the bank, to have stopped borrowing from the
revolver line of credit...'I am pleased to report that we have met that goal,
and it is our expectation that we will be in the same position at the end of the
fourth quarter."
Gilbert added, "Last quarter we reported that Motorola was in the process
of closing its Tewksbury, Massachusetts, factory and moving those operations to
Nogales, Mexico. The transition is continuing and we are currently shipping
product to the Nogales facility. As mentioned, Motorola intends to begin
manufacturing most of the products it purchases from IEC in Nogales. Our
relationship with Motorola is excellent and we expect to continue to provide
some contract-manufacturing services to Motorola. However, the amount of product
is not known by either company at this time. We have continued to replace this
work. Last quarter we gained two new customers and we added a third this
quarter. The new customer is involved in wireless communication. Although the
three new customers are smaller than Motorola, each is important to IEC and has
strong prospects.
"This quarter, we strengthened our sales activities with the addition of a
new Director of Business Development, and two more manufacturers' representative
organizations. Our sales network has increased to include four rep firms and we
expect to have three additional firms by the end of September. These are
important milestones for the company. The loss of Motorola will impact our
fourth quarter and probably our first quarter of 2004. However, we are working
our way through the issue, and reasonably expect to replace all the revenue
associated with Motorola in the foreseeable future. Our primary goals are to
continue securing new customers, improve our balance sheet, remain profitable
and remain cash flow positive. We are pleased to have added accounts and
strengthened our financial structure during a most difficult global economy. Our
financial results continue to compare favorably to many in the industry. We
continue to be well positioned for growth in the sophisticated high-mix, low to
mid volume printed circuit board assembly and systems integration arena."
IEC is a full service, ISO-9001: 2000 registered EMS provider. The Company
offers its customers a wide range of services including design, prototype and
volume printed circuit board assembly, material procurement and control,
manufacturing and test engineering support, systems build, final packaging and
distribution. Information regarding IEC's third quarter 2003 results can be
found on its web site at www.iec-electronics.com/3rdquarter2003pr.htm.
The foregoing, including any discussion regarding the Company's future
prospects, contains certain forward-looking statements that involve risks and
uncertainties, including uncertainties associated with economic conditions in
the electronics industry, particularly in the principal industry sectors served
by the Company, changes in customer requirements and in the volume of sales to
principal customers, competition and technological change, the ability of the
Company to control manufacturing and operating costs, satisfactory relationships
with vendors. The Company's actual results of operations may differ
significantly from those contemplated by any forward-looking statements as a
result of these and other factors, including factors set forth in the Company's
2002 Annual Report on Form 10-K and in other filings with the Securities and
Exchange Commission.
Contact:
Heather Keenan
Marketing Communications Specialist
(315) 332-4262
hkeenan@iec-electronics.com
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