UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q X Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange - - - Act of 1934 For the quarterly period ended March 26, 1999 Commission file Number 0-6508 IEC ELECTRONICS CORP. ----------------------------------------------------- (Exact name of registrant as specified in its charter.) Delaware 13-3458955 ----------------------------- ----------------------------------- (State or other jurisdiction of (I.R.S. Employer Identification No.) incorporation or organization) 105 Norton Street, Newark, New York 14513 - -------------------------------------------------------------------------------- (Address of Principal Executive Offices (Zip Code) (315) 331-7742 - -------------------------------------------------------------------------------- Registrant's telephone number, including area code: Indicate by check mark whether the registrant(1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YES [X] NO [ ] Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practical date: Common Stock, $0.01 Par Value - 7,583,076 shares as of May 6, 1999. Page 1 of 16 PART 1 FINANCIAL INFORMATION Page Number Item 1. Financial Statements Consolidated Balance Sheets as of : March 26, 1999 (Unaudited) and September 30, 1998............. 4 Consolidated Statements of Income for the three months ended: March 26, 1999 (Unaudited) and March 27, 1998 (Unaudited).................................... 5 Consolidated Statements of Income for the six months ended: March 26, 1999 (Unaudited) and March 27, 1998 (Unaudited).................................... 6 Consolidated Statement of Cash Flows for the six months ended: March 26, 1999 (Unaudited) and March 27, 1998 (Unaudited).................................... 7 Notes to Consolidated Financial Statements (Unaudited)......................................... 8 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.....................11 PART II Item 1. Legal Proceedings.............................................. 15 Item 2. Changes in Securities.......................................... 15 Page 2 of 16 Item 3. Defaults Upon Senior Securities................................ 15 Item 4. Submission of Matters to a Vote of Security Holders............ 15 Item 5. Other Information.............................................. 15 Item 6. Exhibits and Reports on Form 8-K............................... 15 Signature ............................................................. 16 Page 3 of 16 IEC ELECTRONICS CORP. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS MARCH 26, 1999 AND SEPTEMBER 30, 1998 (in thousands, except for share data) MARCH 26,1999 SEPTEMBER 30,1998 ---------------- ------------------ ASSETS (Unaudited) Current Assets: Cash and cash equivalents $ 78 $2,278 Accounts receivable 18,377 22,842 Inventories 21,090 20,072 Income taxes receivable 3,816 1,960 Deferred income taxes 3,226 3,226 Other current assets 1,245 441 --------- ---------- Total current assets 47,832 50,819 --------- ---------- Property, Plant and Equipment, net 31,788 36,321 ---------- ---------- Other Assets: Cost in excess of net assets acquired, net 11,042 11,310 Other assets 173 215 ----------- ---------- Total other assets 11,215 11,525 ----------- ---------- $ 90,835 $ 98,665 =========== ========== LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Current portion of long-term debt - 20 Accounts payable 13,993 13,424 Accrued payroll and related expenses 2,400 3,878 Accrued Insurance 964 1,353 Other accrued expenses 257 380 ------- ------- Total current liabilities 17,614 19,055 ------- ------- Deferred Income Taxes 2,904 2,904 ------- ------- Long-Term Debt 5,000 7,138 ------- ------- Shareholders' Equity: Preferred stock, par value $.01 per share Authorized - 500,000 shares Outstanding - 0 shares - - Common stock, par value $.01 per share Authorized - 50,000,000 shares Outstanding - 7,583,076 shares and 7,583,076 shares 76 76 Additional paid-in capital 38,563 38,563 Retained earnings 27,142 31,207 Cumulative translation adjustment (53) 133 Treasury Stock, at cost - 20,573 shares (411) (411) ------- ------- Total shareholders' equity 65,317 69,568 ------- ------- $ 90,835 $ 98,665 ======= ======= <FN> The accompanying notes to unaudited consolidated financial statements are an integral part of these balance sheets </FN> Page 4 of 16 IEC ELECTRONICS CORP. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME FOR THE THREE MONTHS ENDED MARCH 26, 1999 AND MARCH 27, 1998 (in thousands, except per share data) 3 MONTHS ENDED 3 MONTHS ENDED MARCH 26, 1999 MARCH 27, 1998 -------------- ------------------ (Unaudited) (Unaudited) Net sales $34,854 $71,103 Cost of sales 34,380 66,738 ------- ------- Gross profit 474 4,307 Selling and administrative expenses 2,775 4,043 Customer bankruptcy write-off - 1,130 ------- ------- Operating loss (2,301) (866) Interest expense (122) (598) Other income, net 4 17 ------- ------- Loss before income taxes (2,419) (1,447) Benefit from Income taxes (659) (556) ------- ------- Net Loss ($1,760) ($891) ======= ======= Net loss per share: Basic ($0.23) ($0.12) Diluted ($0.23) ($0.12) Weighted average number of shares: Basic 7,563 7,539 Diluted 7,563 7,539 <FN> The accompanying notes to unaudited consolidated financial statements are an integral part of these financial statements. </FN> Page 5 of 16 IEC ELECTRONICS CORP. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME FOR THE SIX MONTHS ENDED MARCH 26, 1999 AND MARCH 27, 1998 (in thousands, except per share data) 6 MONTHS ENDED 6 MONTHS ENDED MARCH 26, 1999 MARCH 27, 1998 -------------- ------------------ (Unaudited) (Unaudited) Net sales $ 71,135 $165,161 Cost of sales 71,263 152,165 ------- ------- Gross (loss)profit (128) 12,996 Selling and administrative expenses 5,372 8,343 Customer bankruptcy write-off - 1,130 ------- ------- Operating (loss)income (5,500) 3,523 Interest expense (276) (1,246) Other income, net (9) 60 ------- ------- (Loss)income before income taxes (5,785) 2,337 (Benefit from)provision for Income taxes (1,720) 901 ------- ------- Net (loss)income ($4,065) $1,436 ======= ======= Net (loss)income per share: Basic ($0.54) $0.19 Diluted ($0.54) $0.19 Weighted average number of shares: Basic 7,563 7,537 Diluted 7,563 7,717 <FN> The accompanying notes to unaudited consolidated financial statements are an integral part of these financial statements. </FN> Page 6 of 16 IEC ELECTRONICS CORP. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED MARCH 26, 1999 AND MARCH 27, 1998 (in thousands) 6 MONTHS 6 MONTHS ENDED ENDED MARCH 26, MARCH 27, 1999 1998 ----------- ----------- (Unaudited) (Unaudited) Cash Flows from Operating Activities: Net (loss)income ($4,065) $1,436 Adjustments to reconcile net (loss)income to net cash provided by operating activities: Depreciation and amortization 5,178 4,900 Amortization of cost in excess of net assets acquired 241 237 Changes in operating assets and liabilities: (Increase) decrease Accounts receivable 4,442 12,089 Inventories (1,029) 17,366 Income taxes receivable (1,865) (101) Other current assets (816) (242) Other assets 24 - Increase (Decrease) Accounts payable 592 (30,571) Accrued payroll and related expenses (1,468) (2,153) Accrued income taxes - (1,887) Accrued Insurance (389) - Other accrued expenses (123) (119) ------- -------- Net cash provided by operating activities 722 955 ------- -------- Cash Flows from Investing Activities: Purchases of property, plant and equipment (961) (4,845) Proceeds from sale of building 220 - -------- -------- Net cash used in investing activities (741) (4,846) -------- -------- Cash Flows from Financing Activities: Exercise of stock options - 48 Net borrowings under line of credit agreements (2,000) 13,000 Principal payments on long-term debt (158) (2,444) -------- --------- Net cash (used in)provided by financing activities (2,158) 1,574 -------- --------- Net decrease in cash and cash equivalents (2,177) (2,317) Effect of exchange rate changes (23) - Cash and cash equivalents at beginning of period 2,278 3,921 -------- --------- Cash and cash equivalents at end of period $78 $1,604 ======== ========= Supplemental Disclosures of Cash Flow Information: Cash paid during the period for: Interest $ 307 $1,247 ======== ========= Income taxes $ 144 $2,889 ======== ========= <FN> The accompanying notes to unaudited consolidated financial statements are an integral part of these financial statements. </FN> Page 7 of 16 IEC ELECTRONICS CORP. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS MARCH 26, 1999 Dollar amounts are presented in thousands (1) Business and Summary of Significant Accounting Policies Business - -------- IEC Electronics Corp. (IEC) is an independent contract manufacturer of complex printed circuit board assemblies and electronic products and systems. IEC offers its customers a wide range of manufacturing services, on either a turnkey or consignment basis, including material procurement and control, manufacturing and test engineering support, statistical quality assurance and complete resource management. Consolidation - ------------- The consolidated financial statements include the accounts of IEC and its wholly-owned subsidiaries, IEC Electronics-Edinburg, Texas Inc.(Edinburg), IEC Arab, Alabama Inc.(Arab) and IEC Electronics-Ireland Limited(Longford) as of August 31, 1998, (collectively, the Company). All significant intercompany transactions and accounts have been eliminated. Revenue Recognition - ------------------- The Company recognizes revenues upon shipment of product for both turnkey and consignment contracts. Cash and Cash Equivalents - ------------------------- Cash and cash equivalents include money market and bank account balances. The Company's cash and cash equivlents are held and managed by institutions which follow the Company's investment policy. The fair value of the Company's finanical instruments approximates carrying amounts due to the relatively short maturies and variable interest rates of the instruments, which approximate current market interest rates. Inventories - ----------- Inventories are stated at the lower of cost (first-in, first-out) or market. The major classifications of inventories are as follows at period end: March 26, 1999 September 30, 1998 ---------------- ---------------- (Unaudited) Raw materials $16,811 $14,170 Work-in-process 4,279 5,902 ---------------- ---------------- $21,090 $20,072 ================ ================ Foreign Currency Translation - ---------------------------- The assets and liabilities of the Company's foreign subsidiary are translated based on the current exchange rate at the end of the period for the balance sheet and a weighted- average rate for the period of the consolidated statement of operations. Translation adjustments are recorded as a separate component of equity. Transaction gains or losses are included in operations. Page 8 of 16 IEC ELECTRONICS CORP. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS MARCH 26, 1999 Dollar amounts are presented in thousands Unaudited Finanical Statements - ------------------------------ The accompaning unaudited finanical statements as of March 26, 1999, and for the three and six months ended March 26, 1999 have been prepared in accordance with generally accepted accounting princples for the interm finanica1 information. In the opinion management, all adjustments considered necessary for a fair presenation, which consist solely of normal recurring adjustments have been included. The accompaning finanical statements should be read in conjuction with the financial statements and notes thereto included in the Company's September 30, 1998 Annual Report on Form 10-K. Earnings per Share - ------------------ Net (Loss) income per Common and Common Equivalent Share - -------------------------------------------------------- (Loss)Income Shares Per Share Three Months Ended (Numerator) (Denominator) Amount - ------------------------------------------------------------------------------- March 26, 1999 Basic EPS Loss available to common Shareholders ($1,760) 7,562,503 ($0.23) ==================================== March 27, 1998 Basic EPS Loss available to common Shareholders ($891) 7,539,329 ($0.12) ==================================== (Loss)Income Shares Per Share Six Months Ended (Numerator) (Denominator) Amount - ------------------------------------------------------------------------------- March 26, 1999 Basic EPS Loss available to common Shareholders ($4,065) 7,562,503 ($0.54) ==================================== March 27, 1998 Basic EPS Income available to common shareholders and assumed conversions $1,436 7,536,500 $0.19 ============= Effect of dilutive options - 180,197 ----------------------- Diluted EPS Income available to common shareholders and assumed conversions $1,436 7,716,697 $0.19 ==================================== Basic EPS was computed by dividing reported earnings available to common shareholders by weighted-average common shares outstanding during the three and six month period. No reconciliation is provided for the three month periods ending March 26, 1999 and March 27, 1998 as well as the six month period ending March 26, 1999 as effect would be antidilutive. 310,250 common shares at an average price of $14 per share were outstanding for the three month six month period ending March 27, 1998, but were not included in the computation of diluted EPS since the options' exercise price was greater than the average market price of common shares. Page 9 of 16 IEC ELECTRONICS CORP. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS MARCH 26, 1999 Dollar amounts are presented in thousands (2) Comprehensive Income -------------------- The Company adopted Statement of Finacial Accounting Standards No. 130, "Reporting Comprehensive Income"(SFAS No. 130)on October 1, 1998. SFAS No. 130 requires comprehensive income and its components to be presented in the financial Statements. Comprehensive income, which includes net (loss) income and foreign currency translation adjustments, was as follows for the three and six months ended March 26, 1999 and March 27, 1998. 3 MONTHS 3 MONTHS ENDED ENDED March 26, March 27, 1999 1998 ---------- ----------- (Unaudited) (Unaudited) Net (loss)income $ (1,760) $ (891) Other comprehensive income: Foreign currency translation adjustments (160) - ---------- ----------- Comprehensive (loss) income $ (1,920) $ (891) 6 MONTHS 6 MONTHS ENDED ENDED March 26, March 27, 1999 1998 ---------- ----------- (Unaudited) (Unaudited) Net (loss)income $ (4,065) $ 1,436 Other comprehensive income: Foreign currency translation adjustments (186) - ---------- ----------- Comprehensive (loss) income $ (4,251) $ 1,436 Financing Arrangements - ---------------------- In May 1998, the Company closed on a $65 million credit facility, which replaced the previous $33 million credit facility. At March 26, 1999, $5 million was outstanding under the three year credit facility. Legal Matters - ------------- There are no material legal proceedings pending to which the Company or any of its subsidiaries is a party or to which any of the Company's or subsidiaries' property is subject. To the Company's knowledge, there are no material legal proceedings to which any director, officer or affiliate of the Company, or any beneficial owner of more than 5 percent (5%) of Common Stock, or any associate of any of the foregoing, is a party adverse to the Company or any of its subsidiaries. Page 10 of 16 Management's Discussion and Analysis ------------------------------------ Results of Operations - Three Months Ended March 26, 1999, Compared to the - -------------------------------------------------------------------------- Three Months Ended March 27, 1998. - ---------------------------------- Net sales for the three month ended March 26, 1999, were $34.8 million, compared to $71.0 million for the comparable period of the prior year, a decrease of 51.0%. The decrease in sales is primarily due to the loss of two major customers who moved their related production offshore. Turnkey sales were 96% of net sales in the quarter as compared to 98% for the comparable period of the prior year. Gross profit was $0.5 million or 1.4% of sales in 1999 versus $4.3 million or 6.1% of sales in the comparable period of 1998. The decrease was due to higher labor and overhead costs as a percentage of sales and lower effeciency leading to an under absorption of fixed overhead costs. Selling and administrative expenses decreased to $2.8 million in the three months ended March 26, 1999, from $4.0 million in the comparable period of the prior fiscal year. This decrease is primarily due to decreases in sales commissions, salary and other expenses. As a percentage of net sales, selling and administrative expenses increased to 8.0% from 5.7% in the same quarter of the prior year. Net loss for the quarter was ($1.8) million versus ($0.9) million in the comparable quarter of the prior year. Diluted loss per share was ($0.23)as compared to diluted loss per share of ($0.12)in the comparable period of the prior fiscal year. Results of Operations - Six Months Ended March 26, 1999, Compared to Six - ------------------------------------------------------------------------ Months Ended March 27, 1998. - ---------------------------- Net sales for the six month period ended March 26, 1999, were $71.1 million, compared to $165.1 million for the comparable period of the prior year, a decrease of 56.9%. The decrease in sales was primarily due to the loss of two major customers who moved their related production offshore. Turnkey sales were 95% of net sales in the six month period as compared to 98% for the comparable period of the prior year. Gross (loss) profit was ($0.1) million or (0.2%) of sales in 1999 versus $13.0 million or 7.9% of sales in the comparable period of 1998. The decrease was due to higher labor and overhead costs as a percentage of sales and lower effeciency leading to an under absorption of fixed overhead costs. Selling and administrative expenses decreased to $5.4 million in the six months ended March 26, 1999, from $8.3 million in the comparable period of the prior fiscal year. This decrease is primarily due to decreases in sales commissions, salary and other expenses. As a percentage of sales, selling and administrative expenses increased to 7.6% from 5.1% in the same period of the prior year. Net (loss) income for the six month period was ($4.0) million versus $1.4 million in the comparable period of the prior year. Diluted (loss)income per share was ($0.54) as compared to income per share of $0.19 in the comparable period of the prior fiscal year. Liquidity and Capital Resources - ------------------------------- Net sales for the month of March 1999 were $14.0 million, representing 40% of the total net sales for the three month period ending March 26, 1999. The Company operates on a fiscal quarter consisting of four weeks in the first and second months and five weeks in the third month. In May 1998, the Company closed on a $65 million senior credit facility. At December 25, 1998, $5 million was outstanding under this new facility. The Company beleives that its funds generated from operations And its existing credit facilities will be sufficient for the Company to meet its capital Expenditures and working capital needs for its operations as presently conducted. As part of its overall business strategy, the Company may from time to time evaluate acquisition opportunities. The funding of these future transactions, if any, may require The Company to obtain additional sources of financing. The impact of inflation on the Company's operations has been minimal due to the fact that it is able to adjust its bids to reflect any inflationary increases in cost. Page 11 of 16 Year 2000 Conversion - -------------------- The Year 2000 issue is the result of many existing computer programs written to handle two digits, rather than four, to define the applicable year. Accordingly, date-sensitive software or hardware may not be able to distinguish between the year 1900 and year 2000, and programs that perform arithmetic operations, comparisons or sorting of date fields may begin yielding incorrect results. This could potentially cause a system failure or miscalculations that could disrupt operations, including, among other things, an inability to process transactions, send invoices, or engage in normal business activities. These Year 2000 issues affect virtually all companies and organizations. The Company has developed plans to address the potential risks it faces as a result of Year 2000 issues. These risks include, among other things, the possible failure or malfunction of the Company's internal information systems, possible problems with the products and services the Company has provided its customers, and possible problems arising from the failure of the Company's supplier systems. The Company has developed a plan to address its Year 2000 issues by initially identifying and assessing Year 2000 compliance for all of its applications and information technology equipment (including all mainframe, network and desktop software and hardware, customer and packaged applications, and IT embedded systems), as well as its non-information technology embedded systems, (including non-IT equipment and machinery such as security, fire prevention and climate control systems) into the categories of "business critical", "important", and "non-important" systems. Business critical systems are those whose Year 2000 compliance is necessary to ensure the proper functioning of the business. These systems have the highest priority in being tested and upgraded, where applicable. It is expected that all "business critical" systems will be Year 2000 compliant by June 1999. "Important" systems will also be tested and upgraded with the expectation that, where necessary, they will be Year 2000 compliant by no later than September 30, 1999. Certain other systems classified as "not important", since they do not use the date function, will also be tested and upgraded where it is of benefit to the Company, but with the lowest priority of the Company's three system classifications. The Company's remediation plan for its Year 2000 issue is an ongoing process, and the estimated completion dates above are subject to change. Overall, at this time the Company believes that its systems will be Year 2000 compliant in a timely manner for several reasons. The main or "central" operating system used by the Company is already compliant with the exception of one sub-system. To the extent that current systems that will not be replaced have been determined to be non-compliant, the Company is working with the suppliers of such systems to obtain upgrades and/or enhancements to ensure Year 2000 compliance. Also, comprehensive testing of nearly all critical systems was performed in November, 1998, at the shut-down Alabama facility in a simulated Year 2000 environment. Only minor issues were found from the testing which have since been corrected and retested successfully. At this stage in the process, the Company has not identified any significant risks. However, the Company believes that the area of the greatest potential risk relates to significant suppliers' failing to remediate their Year 2000 issues in a timely manner. The Company is conducting formal communications with its significant suppliers to determine the extent to which it may be affected by those parties' plans to remediate their own Year 2000 issues in a timely manner. If a number of significant suppliers are not Year 2000 compliant, this could have a material adverse effect on the Company's results of operations, financial position or cash flow. At this point, the Company has not been advised by any significant supplier that it is not Year 2000 compliant. Page 12 of 16 The Company will develop contingency plans and expects to have them completed during 1999. To mitigate the effects of the Company's or significant suppliers' potential failure to remediate the Year 2000 issue in a timely manner, the Company will take appropriate actions. Such actions may include having arrangements for alternate suppliers, using manual intervention to ensure the continuation of operations where necessary and scheduling activity in December 1999 that would normally occur at the beginning of January 2000. If it becomes necessary for the Company to take these corrective actions, it is uncertain, until the contingency plans are finalized, whether this would result in significant delays in business operations or have a material adverse effect on the Company's results of operations, financial position or cash flow. Based upon the Company's current estimates, incremental out-of-pocket costs of its Year 2000 program are expected not to be material. Costs incurred in fiscal 1998 have been minimal and expensed as incurred. Additional costs are expected to be incurred in fiscal 1999 and will be associated primarily with the remediation of existing computer software and hardware. Such costs are estimated to be approximately $500,000. Such costs do not include internal management time, which the Company does not separately track, nor the deferral of other projects, the effects of which are not expected to be material to the Company's results of operations or financial condition. Euro Conversion Issues - ---------------------- Effective January 1, 1999, 11 of the 15 member countries of the European Union (the participating countries) established fixed conversion rates between their existing sovereign currencies and the euro. For three years after the introduction of the euro, the participating countries can perform financial transactions in either the euro or their original local currencies. This will result in a fixed exchange rate among the participating countries, whereas the euro (and the participating countries' currency in tandem) will continue to float freely against the U.S. dollar and other currencies of the non-participanting countries. The Company is evaluating the effects of the euro conversion on the Company. IEC does not believe that significant modifications of its information technology systems are needed in order to handle euro transactions and reporting, and the Company is in the process of evaluating its tax positions and all outstanding contracts in currencies of the participating countries to determine the effects if any, of the euro conversion. While the Company currently believes that the effects of the conversion do not have a significant adverse material effect on the Company's business and operations, there can be no assurances that such a conversion will not have a adverse material effect on the Company's results of operations and financial position due to competitive and other factors that may be affected by the conversion that can not be predicted by the Company. Interest rate sensitivity - ------------------------- The Company has entered into a three year interest rate swap transaction with one of the credit facility partners under which IEC pays a fixed rate of interest hedging against the varible rates incurred under the credit facility. The interest rate swap expires in the year 2001 which coincides with the maturity date of the senior debt facility. As the Company intends to hold the interest rate swap until maturity date, the Company is not subject to market risk. In fact, such interest rate swap has fixed a portion of the interest expense for the debt facility reducing the impact of interest rate risk. Page 13 of 16 Recently Issued Accounting Standards - ------------------------------------ In late 1997, Statement of Financial Accounting Standards No.131 (SFAS No.131) "Disclosure about Segments of Enterprise and Related Information" was issued. This statement will be effective for the Company in fiscal 1999. The Company believes that the effect of adoption of SFAS No.131 will not be material. Additionally, in June, 1998, Statement of Financial Accounting Standards No.133 (SFAS No.133), "Accounting for Derivative Instruments and Hedging Activities" was issued. This statement will be effective for the Company in fiscal 2000. The Company believes that the effect of adoption of SFAS No.133 will not be material based on the Company's current risk management strategies. Forward-looking Statements - -------------------------- Except for historical information, statements in this quarterly report are forward-looking made pursuant to the safe harbor created by the Private Securities Litigation Reform Act of 1995 and are therefore subject to certain risks and uncertainties including timing of orders and shipments, availability of material, product mix and general market conditions that could cause actual results to differ materially from those projected in the forward looking statements. Investors should consider the risks and uncertainties discussed in the September 30, 1998, Form 10K and its other filings with the Securities and Exchange Commission. Page 14 of 16 PART II. OTHER INFORMATION Item 1 -- Legal Proceedings None. Item 2 -- Changes in Securities None. Item 3 -- Defaults Upon Senior Securities None. Item 4 -- Submission of Matters to a Vote of Security Holders (a) The annual Meeting of Stockholders was held on Febuary 24, 1999 (b) The names of the directors elected at the Annual Meeting are as follows David J. Beaubien Thomas W. Folger W. Barry Gilbert Robert P.B. Kidd Eben S. Moulton Russell E. Stingel Justin L. Vigdor (c)(i) At the Annual Meeting, the tabulation of the votes with respect to each nominee was as follows: Nominee Votes FOR Authority Withheld ------- --------- ------------------ David J. Beaubien 7,033,044 56,085 Thomas W. Folger 7,003,840 86,309 W. Barry Gilbert 7,032,914 56,235 Robert P.B. Kidd 7,006,414 82,735 Eben S. Moulton 7,032,064 57,085 Russell E. Stingel 7,030,539 58,610 Justin L. Vigdor 7,004,614 84,535 Item 5 -- Other Information None. Item 6 -- Exhibits and Reports on Form 8-K a. Exhibits None. b. Reports on Form 8-K None. Page 15 of 16 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. IEC ELECTRONICS CORP. REGISTRANT Dated: May 6, 1999 /s/Russell E. Stingel ----------------------------- Russell E. Stingel Chief Executive Officer Dated: May 6, 1999 /s/Patricia A. Bird ------------------------------ Patricia A. Bird Corporate Controller Page 16 of 16