8-K

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(D) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported) – April 23, 2009

IEC ELECTRONICS CORP.

(Exact Name of Registrant as Specified in its Charter)

Delaware

(State or Other Jurisdiction of Incorporation)

0-6508	13-3458955
(Commission File Number)	(IRS Employer Identification No.)

105 Norton Street, Newark, New York 14513

(Address of principal executive offices)(Zipcode)

(315) 331-7742

(Registrant’s Telephone Number, Including Area Code)

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Item 2.02  Results of Operations and Financial Conditions

On April 23, 2009, IEC Electronics Corp. issued a press release announcing its financial results for the fiscal quarter ended March 27, 2009.  A copy of the press release is furnished as Exhibit 99.1 to this report.  On April 23, 2009, IEC Electronics Corp. posted on its website certain supplemental financial data for the fiscal quarter ended March 27, 2009.  A copy of that information is furnished as Exhibit 99.2 to this report.

The information in this Form 8-K and Exhibit 99.1 attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liabilities of that Section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934, except as shall be expressly set forth by specific reference in such filing.

Neither the filing of any exhibit to this report nor the inclusion in such exhibits of a reference to IEC Electronics Corp.’s Internet address shall, under any circumstances, be deemed to incorporate the information available at such address into this report.  The information available at IEC Electronics Corp.’s Internet address is not part of this report.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits

99.1 Press Release issued by IEC Electronics Corp. dated April 23, 2009.

99.2 Supplemental financial data posted on the website of IEC Electronics Corp (www.iec-electronics.com) on April 23, 2009.

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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 hereunto duly authorized.

		IEC Electronics Corp.
		(Registrant)
Date:  April 23, 2009	By:	/s/ W. Barry Gilbert
		W. Barry Gilbert
		Chairman, Chief Executive Officer

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EX-99.1

Exhibit 99.1

Newark, NY – April 23, 2009 – IEC Electronics Corp. (IECE.OB) announced its results for the second quarter of fiscal 2009, ending March 27, 2009.

The Company reported revenue of $16,335,000 for the quarter, operating income of $1,143,000 and net income of $2,619,000 or $0.29 per share.  This compares to revenue of $11,940,000, operating income of $385,000 and net income of $673,000 or $0.07 per share for the quarter ending March 28, 2008.  IEC had revenue of $32,192,000 for the first six months of fiscal 2009, operating income of $2,090,000 and a net income of $3,150,000 or $.34 per share.  This compares to revenue of $23,100,000, operating income of $777,000 for the first six months of fiscal 2008, and a net profit of $1,093,000 or $.12 per share.

W. Barry Gilbert, Chairman of the Board and CEO, stated, “This was a good quarter.  We are weathering the economic downturn fairly well.  All our important financial margins have improved.  Our gross margin improved to 16.0% as compared with our second quarter’s gross margin of 11.6% for Q2 2008.  Operating income margin was 7.0% of sales versus 3.2% for the same period last year.  Clearly, a small portion of the accretion comes from the Val-U-Tech wire and cable acquisition last June.  Our strategy of entering that business has enabled us to support our traditional contract manufacturing customers on an ever expanding basis.  We intend to change the name of the operation to IEC Electronics Wire and Cable Inc.  In March, we engaged Mooreland Partners LLC to help us with a “buy-side” engagement looking for companies possessing other synergistic capabilities.

“Moreover, we are pleased to report that our core contract manufacturing business continues to improve. The investments made last year are starting to pay off in manufacturing efficiencies.    Some of the efficiency improvement in this period is also a result of a more favorable product mix, which may or may not continue in the near future.  However, we expect our gross margin as a percent of sales to normalize in a range between 14.5% and 15.5%, which is one of the highest in the industry.”

“The recent unemployment figures are a stark reminder of the condition of this economy.  We do not make a practice of reporting our backlog during the year, nevertheless it is holding up reasonably well despite continued softness, previously reported, associated with a couple of customers who are continuing to experience difficulties.  Our sector performance has shifted somewhat.  The military sector remains strong and we believe it will be so after the proposed government budget adjustments.   It has increased to 48% of sales for the first six months of fiscal 2009 as compared to 39% of sales for fiscal 2008, the last time we presented sector information.  Our industrial sector has declined slightly to 28% of sales for the first six months of this year as compared to 30% for the fiscal year end 2008.  The aerospace sector has remained just over 10% of the Company’s sales for the first six months as compared to fiscal year end 2008.  We still expect continued revenue growth for the balance of the year as we continue to focus on our core military, aerospace, industrial and medical market sectors.”

“In February, our shareholders authorized the Board, at its discretion, to effect a reverse stock split at anytime before the 2010 Annual Meeting in order to support our efforts to secure re-listing of our common stock on a national exchange.  We are not rushing to implement the reverse split in this turbulent market; however we have started to prepare the paperwork for our listing application.  In summary, the Company continues to move in the right direction and we are confident that we are creating future value for our shareholders and opportunity for our employees.”

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As a full service EMS provider, IEC is AS9100 and ISO-9001:2000 registered, and a NSA approved supplier under the COMSEC standard.  The Company offers its customers a wide range of services including design, prototype and high reliability printed circuit board assembly, material procurement and control, manufacturing and test engineering support, and systems build. Information regarding IEC’s second quarter 2009 results can be found on its web site at www.iec-electronics.com/documents/finance/Q2-2009-release.pdf

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, the ability of the Company to assimilate acquired businesses and to achieve the anticipated benefits of such acquisitions, 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 2008 Annual Report on Form 10-K and in other filings with the Securities and Exchange Commission.

Contact:	Heather Keenan	John Nesbett
	IEC Electronics Corp.	Institutional Marketing Services
	(315) 332-4262	(203) 972 - 9200
	hkeenan@iec-electronics.com	jnesbett@institutionalms.com

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EX-99.2

Exhibit 99.2

IEC ELECTRONICS CORP - CONSOLIDATED

BALANCE SHEET

MAR 27, 2009 AND SEP 30, 2008

(In Thousands)

	MAR 27, 2009			SEP 30, 2008
ASSETS
CURRENT ASSETS
Cash		0			0
Accounts Receivable		9,771			10,345
Inventories		7,364			6,230
Deferred Income Taxes		1,908			1,908
Other Current Assets		162			61
Total Current Assets		19,205			18,544
NET FIXED ASSETS		1,122			853
NON-CURRENT ASSETS
Deferred Income Taxes		14,042			14,727
Other Non-Current Assets		54			60
TOTAL ASSETS		34,423			34,184
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Short Term Borrowings		1,072			1,098
Accounts Payable		6,163			6,125
Accrued Payroll and Related Taxes		611			808
Other Accrued Expenses		483			603
Other Current Liabilities		708			664
Total Current Liabilities		9,037			9,298
LONG TERM DEBT		7,148			8,910
TOTAL LIABILITIES		16,185			18,208
SHAREHOLDER'S EQUITY
Authorized - 50,000,000 shares
Issued – 9,514,049, Outstanding – 8,501,176
Common stock, par value $.01 per share		95			93
Treasury Shares at Cost - 1,012,873 shares		(1,413	)		(223	)
Additional Paid-in Capital		40,423			40,124
Retained Earnings		(20,867	)		(24,018	)
TOTAL SHAREHOLDER’S EQUITY		18,238			15,976
TOTAL LIABILITIES & EQUITY		34,423			34,184

IEC ELECTRONICS CORP - CONSOLIDATED

STATEMENT OF INCOME

FOR QUARTER END & YTD MAR 27, 2009 AND MAR 28, 2008

(In Thousands)

	ACTUAL			PRIOR			ACTUAL			PRIOR
	QUARTER			QUARTER			YTD			YTD
	MAR 27, 2009			MAR 28, 2008			MAR 27, 2009			MAR 28, 2008
Sales		16,335			11,940			32,192			23,100
Cost of Sales		13,728			10,557			27,351			20,571
Gross Profit		2,607			1,383			4,841			2,529
Less: Operating Expenses
Selling & G&A		1,464			998			2,751			1,752
Restructuring		0			0			0			0
Total Operating Expenses		1,464			998			2,751			1,752
Operating Profit		1,143			385			2,090			777
Interest and Financing Expense		91			84			215			176
(Gain)/Loss on Disposal of Fixed Assets		(5	)		(2	)		(5	)		(2	)
Other Expense/(Income)		(61	)		0			(61	)		0
Net Income before Income Taxes		1,118			303			1,941			603
Provision for /(benefit from)Income Tax		(1,501	)		(370	)		(1,209	)		(490	)
Net Income		2,619			673			3,150			1,093