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) – May 8, 2012

IEC ELECTRONICS CORP.

(Exact Name of Registrant as Specified in its Charter)

Delaware	0-6508	13-3458955
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

105 Norton Street, Newark, New York 14513

(Address of principal executive offices) (Zip code)

Registrant’s telephone number, including area code) (315) 331-7742

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))

Section 2 Financial Information

Item 2.02 Results of Operations and Financial Condition

On May 8, 2012, IEC Electronics Corp. (the “Company”) issued a press release announcing its financial results for the second fiscal quarter ended March 30, 2012. A copy of the press release is furnished as Exhibit 99.1 to this report.

The press release attached as Exhibit 99.1 references EBITDA and EBITDA per Share, which are non-GAAP financial measures. A reconciliation of these non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with GAAP, Net Income and Diluted Earnings per Share, respectively, is provided in the attachment to the release, included in Exhibit 99.1.

These non-GAAP financial measures should not be considered in isolation; they are in addition to, and are not a substitute for, financial measures under GAAP, or as a measure of the Company’s profitability or liquidity. EBITDA and EBITDA per share may be different from non-GAAP financial measures used by other companies, and may not be comparable to similarly titled measures reported by other companies. Further, the Company may utilize other measures to illustrate performance in the future. Non-GAAP financial measures have limitations since they do not reflect all of the amounts associated with the Company’s results of operations as determined in accordance with GAAP.

The Company defines EBITDA as earnings before interest, taxes, depreciation and amortization. EBITDA per share presents EBITDA on a diluted per share basis. EBITDA does not take into account working capital requirements, capital expenditures, debt service requirements and other commitments, and accordingly, EBITDA is not necessarily indicative of amounts that may be available for discretionary use. Although per share EBITDA does not directly depict the amount that accrues to stockholder benefit, the Company views EBITDA as a useful measure of operating performance given the Company’s strong operating margins and large net operating loss carryforward (NOL). Additionally, the Company presents EBITDA as a supplemental measure because: (i) it is a basis upon which the Company assesses its liquidity position and performance; (ii) the Company believes that investors will find the data useful in assessing its ability to service and/or incur indebtedness; and (iii) certain covenants in the Company’s credit facilities are tied to similar measures. The Company believes that EBITDA, when considered with both the Company’s GAAP results and the reconciliation to net income, provides a more complete understanding of the Company’s business than could be obtained absent this disclosure.

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 or furnishing of any exhibit to this report nor the inclusion in such exhibit of a reference to the Company’s Internet address shall, under any circumstances, be deemed to incorporate the information available at such address into this report. The information available at the Company’s Internet address is not part of this report.

Section 9 Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits

(d)Exhibits

Exhibit 99.1 Press Release issued by IEC Electronics Corp. dated May 8, 2012

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:  May 8, 2012	By:	/s/ Vincent A. Leo
		Vincent A. Leo
		Interim Chief Financial Officer

EXHIBIT INDEX

Exhibit 99.1 Press Release issued by IEC Electronics Corp. dated May 8, 2012

EX-99.1

Exhibit 99.1

105 Norton Street · Newark, NY 14513 · Ph: (315) 331-7742 · Fax: (315) 331-3547 · www.iec-electronics.com

IEC Announces Outstanding Second Quarter Results for Fiscal 2012

§ Q2 Operating margin improved to 11.8% compared to 9.5% in Q2 2011

§ Q2 Earnings per share increased to $0.26 compared to $0.17 per share in Q2 2011

§ Debt continues to be reduced

Newark, NY – May 8, 2012 – IEC Electronics Corp. (NYSE Amex: IEC) announced its results for the fiscal second quarter ending March 30, 2012.

For the quarter ended March 30, 2012 the Company reported revenue of $38,020,000, and net income of $2,607,000 or $0.26 per diluted share. This compares to revenue of $35,085,000, and net income of $1,747,000 or $0.17 per diluted share for the quarter ended April 1, 2011.

IEC had revenue of $71,878,000 and net income of $3,556,000 or $0.36 per diluted share for the first six months of fiscal 2012. This compares to revenue of $63,729,000 and net income of $2,796,000 or $0.28 per diluted share for the first six months of fiscal 2011.

Earnings before interest, taxes, depreciation and amortization (EBITDA) for the second quarter of fiscal 2012 were $5,483,000 or $0.55 per diluted share, compared to $4,005,000 or $0.40 per diluted share for the same quarter last year. The Company views EBITDA as a useful measure of operating performance given its strong operating margins and large net operating loss carryforward (NOL). EBITDA and EBITDA per basic and diluted shares are reconciled to GAAP measures in the attachment to this release.

W. Barry Gilbert, Chairman of the Board and CEO, stated, “This was an excellent quarter with meaningful improvements across all of our important financial metrics. Most significantly, our gross profit margin reached 21.7 % and operating margin reached 11.8%. These results are some of the best in the company’s history, and particularly strong for our industry.

“When we announced our first quarter, we expected our operational cost containment programs to take longer to impact our performance. During the second quarter, these containments certainly supported our results; however it was the shift to higher margin product mix in combination with operational improvement in all segments of the business that produced these historically strong results. All of our businesses operated better than they did last quarter. SCB has improved significantly, has made a positive contribution for the quarter, and we expect their contribution to continue. Some previously delayed programs are starting to be released. Furthermore, SCB has picked up a number of new programs and a significant new customer.

“While our operating income margin saw a sharp increase to 11.8%, we expect operating margins to move closer to 10% over the next 18 months, still well ahead of average operating margin for the last two years of approximately 8.0%. In addition, with cash from improved margins we continue to pay down our debt. At this time, with our current visibility, we expect to reduce our debt by approximately $9 million for the fiscal year ending in September.

“Consistent with past practice, we do not report backlog during the year but we do offer a mid-year update. In that regard, our current backlog is about 10% lower than the backlog figure reported in our 10-K for fiscal 2011. As in the past, it is important to note that some of the backlog extends past 2012 into 2013 and 2014.

“Finally, our sector performance has shifted somewhat, creating is a slightly more balanced portfolio. Our military/aerospace sector remains strong, though decreased as a percentage of our sales to 43% for the first six months of fiscal 2012, as compared to 51% of sales at the end of fiscal 2011. This decrease is attributable to the slowdown in military spending; however, we have not had any program cancellations. Our medical and other sector has stayed relatively constant at 25% of sales for the first six months of fiscal 2012 compared to 26% at the close of fiscal 2011. Our industrial and communications sectors improved to 32% of sales for the first six months of this year compared to 23% at the close of fiscal year end 2011.

“Our Company continues to move forward and we are confident that we are creating future value for our shareholders and opportunity for our employees.”

Conference Call

IEC will host a conference call with investors at 10:00 a.m. Eastern time today, May 8, 2012 to discuss its financial results for the quarter ended March 30, 2012. The call may be accessed in the U.S. and Canada by dialing toll-free 1-877-407-9210. International callers may access the call by dialing 1-201-689-8049. To access a live webcast of the conference call, log onto the IEC website at http://www.iec-electronics.com or http://www.InvestorCalendar.com. A replay of the teleconference will be available for 30 days after the call and may be accessed domestically by dialing 1-877-660-6853 and international callers may dial 1-201-612-7415. Callers must enter account number 286 and conference number 392781.

About IEC Electronics

IEC Electronics Corporation is a premier provider of electronic manufacturing services (“EMS”) to advanced technology companies primarily in the military and aerospace, medical, industrial and computing sectors. The Company specializes in the custom manufacture of high reliability, complex circuit cards, system level assemblies, a wide array of custom cable and wire harness assemblies, precision sheet metal products, and advanced research and testing services. As a full service EMS provider, IEC is a world-class ISO 9001:2008, AS9100 and ISO13485 certified company. The AS9100 certification enables IEC to serve the military and commercial aerospace markets. The ISO13485 certification supports the quality requirements of medical device markets. The Company is also ITAR registered and NSA approved under the COMSEC standard. Dynamic Research and Testing Laboratory (DRTL) the Company’s newest business unit, is an ISO 17025 accredited laboratory specializing in the testing and detection of counterfeit electronic parts, as well as component risk mitigation and advanced failure analysis. IEC Electronics is headquartered in Newark, NY (outside of Rochester) and also has operations in Victor, NY, Rochester, NY, Albuquerque, NM and Bell Gardens, CA. Additional information about IEC can be found on its web site at www.iec-electronics.com.

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, the ability of the Company to develop and maintain satisfactory relationships with vendors, and the ability of the Company to efficiently integrate acquired companies into its business.  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 2011 Annual Report on Form 10-K and in other filings with the Securities and Exchange Commission. The Company undertakes no obligation to publicly update or revise forward-looking information, whether as a result of new, updated information future events or otherwise.

Contact:	Vincent Leo	John Nesbett or Jennifer Belodeau
	Acting Vice President & CFO	Institutional Marketing Services
	IEC Electronics Corp.	(203)972-9200
	(315)332-4308	jnesbett@institutionalms.com
	VLeo@iec-electronics.com	jbelodeau@institutionalms.com

IEC ELECTRONICS CORP - CONSOLIDATED

BALANCE SHEET

MAR 30, 2012 AND SEP 30, 2011

(In Thousands)

	MAR 30, 2012			SEP 30, 2011
ASSETS
CURRENT ASSETS
Cash		-			-
Accounts Receivable		20,979			19,423
Inventories		19,005			16,093
Deferred Income Taxes		3,863			3,863
Other Current Assets		2,714			1,834
Total Current Assets		46,561			41,213
NET FIXED ASSETS		17,747			17,886
NON-CURRENT ASSETS
Goodwill		13,810			13,810
Intangible Assets		5,738			5,964
Deferred Income Taxes		4,738			6,768
Other Non-Current Assets		150			179
TOTAL ASSETS		88,744			85,820
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Short Term Borrowings		6,779			6,896
Accounts Payable		16,303			12,750
Accrued Payroll and Related Taxes		2,707			3,092
Other Accrued Expenses		775			851
Other Current Liabilities		266			332
Total Current Liabilities		26,830			23,921
LONG TERM DEBT		24,379			28,213
TOTAL LIABILITIES		51,209			52,134
SHAREHOLDERS’ EQUITY
Authorized - 50,000,000 shares
Issued – 10,835,533, Outstanding – 9,820,075
Common stock, par value $.01 per share		109			108
Treasury Shares at Cost - 1,015,458 shares		(1,435	)		(1,435	)
Additional Paid-in Capital		42,952			42,660
Retained Earnings		(4,091	)		(7,647	)
TOTAL SHAREHOLDERS’ EQUITY		37,535			33,686
TOTAL LIABILITIES & EQUITY		88,744			85,820

IEC ELECTRONICS CORP - CONSOLIDATED

STATEMENT OF INCOME

FOR QUARTER END & YTD MAR 30, 2012 AND APR 1, 2011

(In Thousands)

	ACTUAL		ACTUAL		ACTUAL			ACTUAL
	QUARTER		QUARTER		YTD			YTD
	MAR 30, 2012		APR 1, 2011		MAR 30, 2012			APR 1, 2011
Sales		38,020		35,085		71,878			63,729
Cost of Sales		29,764		27,723		58,136			51,564
Gross Profit		8,256		7,362		13,742			12,165
Less: Operating Expenses
Selling & Administrative Expenses		3,770		4,038		8,307			6,879
Operating Profit		4,486		3,324		5,435			5,286
Interest and Financing Expense		292		480		644			723
Other (Income)/Expense		58		116		(849	)		130
Net Income before Income Taxes		4,136		2,728		5,640			4,433
Provision for Income Tax		1,529		981		2,084			1,637
Net Income		2,607		1,747		3,556			2,796
Basic Earnings Per Share	$	0.27	$	0.18	$	0.37		$	0.30
Diluted Earnings Per Share	$	0.26	$	0.17	$	0.36		$	0.28
Basic Shares		9,666,920		9,576,152		9,656,431			9,399,555
Diluted Shares		10,038,406		9,996,928		9,951,727			9,887,922

IEC ELECTRONICS CORP - CONSOLIDATED

RECONCILIATION OF NET INCOME TO EBITDA

FOR QUARTER END & YTD MAR 30, 2012 & APR 1, 2011

	ACTUAL		ACTUAL		ACTUAL		ACTUAL
	QUARTER		QUARTER		YTD		YTD
	MAR 30, 2012		APR 1, 2011		MAR 30, 2012		APR 1, 2011
Net Income		2,607		1,747		3,556		2,796
Provision for / (benefit from) Income Tax		1,529		981		2,084		1,637
Depreciation & Amortization Expense		1,055		797		2,070		1,286
Net Interest Expense / (Income)		292		480		644		723
EBITDA		5,483		4,005		8,354		6,442
Basic Earnings per Share		0.27		0.18		0.37		0.30
Basic EBITDA per Share		0.57		0.42		0.87		0.69
Basic Earnings per Share		0.26		0.17		0.36		0.28
Diluted EBITDA per Share		0.55		0.40		0.84		0.65
Basic Shares		9,666,920		9,576,152		9,656,431		9,399,555
Diluted Shares		10,038,406		9,996,928		9,951,727		9,887,922