Nortech Systems Incorporated (NASDAQ: NSYS) shares took sharp losses at the start of the session Thursday, as the company, a leading provider of engineering and manufacturing solutions for complex electromedical and electromechanical products serving the medical, industrial and defense markets, reported financial results for the third quarter ended September 30, 2024.
2024 Q3 Highlights:
? Net sales of $31.4 million
? Net loss of ($739) thousand, or ($0.27) per diluted share
? Adjusted earnings before interest, taxes, depreciation, and amortization (“EBITDA”) of $143 thousand
? 90-day backlog of $29.6 million as of September 30, 2024
“Third quarter net sales were impacted by a continuing pattern of customers’ delaying product purchases, as well as customers’ desire to reduce their inventory and to shorten purchase order to fulfillment timelines, both of which have also negatively impacted many in the contract manufacturing industry over the last several quarters,” said CEO Jay D. Miller.
“We see this as an opportunity to further strengthen customer relationships which are key to achieving the Company’s long-term strategic objectives. 2024 has been a difficult year with significant headwinds. However, we are meeting these challenges by consolidating facilities and moving a significant number of programs to lower-cost, higher-margin locations, while investing in important new capabilities. In general, we are continuing to position Nortech for sustained long-term health and growth in the face of short-term challenges.”
NSYS shares slid 72 cents, or 6%, to $11.25.
