NextWave Research Publishes on IEC Electronics (OTCBB: IECE) - Successful Transformation in Difficult Times

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NextWave Research announces the publication of "IEC Electronics (OTCBB: IECE) - Successful Transformation in Difficult Times" highlighting the company's successful transition to the high-margin military, aerospace, medical and industrial markets.

NextWave Research announces the publication of "IEC Electronics (OTCBB: IECE) - Successful Transformation in Difficult Times" highlighting the company's successful transition to the high-margin military, aerospace, medical and industrial markets which began in 2005 and continues to this day.

Analyst John M. Putnam, CFA states in the article "The deterioration in the economy during the fourth quarter of 2008 appears to have had little effect on IEC's first fiscal quarter ending December 26, 2008. The company recorded a revenue increase of 42% to $15.8 million, a gross margin of 14.1% as compared to 10.3% in the same period a year ago, an a 140% increase in operating income on a 6% operating margin."

In FY 2008, revenues increased 24.9% to over $51 million, gross margin increased to 12.1% of revenues, up from 9.5% in 2007, operating margin rose to 4.7% from 2.4% (industry average is 2.9%) and backlog increased 81% to $40.5 million.

Mr. Putnam describes IEC Electronics transformation away from high volume, low margin technology clients such as Compaq, Lucent, Motorola, JDS Uniphase and Tellabs to lower volume but higher margin clients such as the military, aerospace and medical markets. These are less prone to moving production to lower cost venues because of proprietary technologies or government restrictions. IEC Electronics military business now accounts for 34% of revenue, aerospace, 11% and medical, approximately 9%, all up from virtually zero revenue in 2005.

IEC has tentatively set April 23rd for reporting its fiscal Q2 and Mr. Putnam states "While management remains optimistic about the company's prospects for the remainder of fiscal 2009 and into 2010, it also remains realistic about the mix of its business. It anticipates some softening in its existing customer base with respect to ongoing projects but believes that its intense approach to providing exemplary service to it clients will garner new programs, increased volume from existing programs and most important, new customers. As such, management believes total revenues in fiscal 2009 could increase 25% to 35% ($64 million to $69 million) and net income before taxes could increase as much as 50%. We believe that value-oriented investors should consider adding IEC Electronics to their long-term portfolios."

NextWave Research founder, Stephen M. Dunn states "Investors should always be on the look our for strong management teams during difficult economic times. The management team at IEC Electronics has been steadily transforming their business since 2005 which resulted in solid calendar Q4 results despite very challenging economic conditions."

Interested readers can access the complete article and all of NextWave Research's analysis free-of-charge at http://www.NextWaveResearch.com with articles available in 11 languages.

About NextWave Research:
NextWave Research was created to address the dearth of professional Wall Street research coverage for quality small-cap companies. We believe that quality companies who choose to sponsor research analyst coverage provide a desperately needed service to both individual and institutional investors with reports and commentary freely available to all. We Don't Get Paid to Like Companies-We Get Paid by Companies We Likeā„¢.

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Stephen M. Dunn

John M. Putnam CFA
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