Nortech Systems Provides Outlook for Fourth Quarter and 2001; Conference Call Announcement, Wednesday, Dec. 6, at 9:00 a.m

Business Wire,  Dec 5, 2000  

• E-mail
• Print
• Link

Business Editors

MINNEAPOLIS--(BUSINESS WIRE)--Dec. 5, 2000

Nortech Systems, Inc. (Nasdaq: NSYS) announced its financial outlook for the fourth quarter ending Dec. 31, 2000, as well as the preliminary outlook for the first half of 2001. For the fourth quarter, the company expects to again to report record high levels of revenue and earnings from continuing operations, with an earnings per share objective between $0.24 and $0.26. This would bring fiscal 2000 earnings per share in the range of $0.83 to $0.85. This compares with $0.46 per share from continuing operations for fiscal 1999.

In the first two quarters of 2001, Nortech Systems' objective is a 15 to 20 percent increase over results for the first and second quarters of 2000, when the company earned $0.17 and $0.19 per share, respectively.

On Oct. 17, Nortech Systems reported results from continuing operations for the third quarter ended Sept. 30, 2000. Net sales were $13,724,356, a 47 percent increase over the third quarter in 1999. Quarterly net income increased 141 percent, to $546,616, or $.23 per share. For the nine months ended Sept. 30, 2000, Nortech Systems reported net sales from continuing operations of $39,492,921, an increase of 40 percent over the same period in 1999. Net income from continuing operations for the period increased 84 percent to $1,404,845, or $.59 per share.

"Business is strong across our five divisions, with revenue expansion from both existing and new customers," says Quent Finkelson, Chairman, President & CEO of Nortech Systems. "In the fourth quarter we again expect to achieve record levels of both revenue and net income. And while we do not anticipate breaking records throughout all of 2001, we foresee this overall positive growth pattern continuing," adds Finkelson. "The electronics outsourcing trend by original equipment manufacturers remains in an acceleration mode -- a growth trend which we will continue to capitalize on."

In November, Technology Forecasters announced its key trends for the electronics manufacturing services (EMS) industry through 2004. The total cost of goods sold by original equipment manufacturers (OEMs) is expected to reach $1 trillion in 2004. By this time, the penetration of the EMS industry (measured by the percentage of EMS company revenue to the total OEMs' cost of goods) is expected to be $260 billion, or 26 percent, with the rate of penetration accelerating. In 1999 the penetration rate was 11 percent. The penetration rate may eventually reach 70 to 80 percent, but Technology Forecasters will not forecast the timing of this.

This press release contains forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. While this release is based on management's best judgment and current expectations, actual results may differ based on many factors, including the company's competitive performance and changes in market conditions.

Nortech Systems, Inc. (www.nortechsys.com), based in Wayzata, Minn., is a manufacturer of wire harnesses, cable and electromechanical assemblies, printed circuit board assemblies and higher-level assemblies for a wide range of commercial and defense industries. Nortech Systems has additional Minnesota facilities in Aitkin, Bemidji, Fairmont and Merrifield; and facilities in Augusta, Wis.

Nortech Systems is traded on the Nasdaq Stock Market under the symbol NSYS.

Nortech Systems will hold a conference call at 9:00 a.m. CST on Wednesday, Dec. 6, to discuss this press release and related subjects. Anyone interested in participating in the telephone conference call with Quent Finkelson, the Chairman, President and CEO of Nortech Systems, may dial 1-888-787-0203 (Passcode: "Financial Outlook"). Beginning one hour after this conference call concludes, a taped replay will be available at 1-888-566-0565 through Wednesday, Dec. 13.

COPYRIGHT 2000 Business Wire
COPYRIGHT 2008 Gale, Cengage Learning