UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to NORTECH SYSTEMS INCORPORATED Commission file number 0-13257 State of Incorporation: Minnesota IRS Employer Identification No. 41-1681094 Executive Offices ...

Financial Data and Key Metrics Changes - In Q4 2023, net sales totaled $36.1 million, a 1.2% increase from $35.6 million in Q4 2022 and up approximately 8% sequentially [9] - For the full year 2023, net sales reached $139.3 million, up nearly 4% from the prior year, driven by growth in medical, aerospace and defense, and industrial sectors [10] - Gross profit for 2023 was $23.1 million or 16.6%, compared to $20.5 million or 15.3% in 2022, indicating gross margin expansion [11] - Operating expenses totaled $17.2 million, a 3.4% increase from $16.6 million in 2022, primarily due to increased general and administrative expenses [12] - Fourth quarter 2023 GAAP net income was $6.9 million or $2.38 per diluted share, compared to $2 million or $0.70 per diluted share in 2022 [15] - EBITDA for 2023 increased 38.2% to $8 million, compared to $5.8 million in 2022, largely due to increased sales [17] Business Line Data and Key Metrics Changes - Medical market sales increased by $2.8 million or 3.7% in 2023, primarily from medical component products [10] - Aerospace and defense category net sales totaled $20.5 million, a 5.1% increase from the prior year [11] - Industrial category net sales were $40.1 million, up $3.6 million from the prior year [11] Market Data and Key Metrics Changes - The company noted a normalization in supply chain and customer ordering practices, which had previously influenced backlog levels [34] - The trend of near-shoring is gaining attention, with Mexico surpassing China in U.S. imports for the first time in 20 years [35] Company Strategy and Development Direction - The company emphasizes an employee-first mindset in its strategic planning, recognizing employees as valuable assets [31] - Nortech's three-tiered global manufacturing strategy in the U.S., Mexico, and China allows flexibility in production based on customer needs [36] - The company is focused on strengthening its balance sheet and delivering sustained EBITDA growth [47] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to manage challenges and continue growth, citing strong employee dedication and strategic planning [74] - The company anticipates continued sales momentum in 2024, supported by stabilization in supply chain and customer orders [71] Other Important Information - The company replaced its asset-backed line of credit with a cash flow-backed $15 million senior secured revolving line of credit, expiring in February 2027 [21][22] - Cash and cash equivalents as of December 31, 2023, totaled $1.7 million, reflecting fluctuations due to timing of cash receipts and expenditures [46] Q&A Session Summary Question: Comment on Nortech's accomplishments in the last five years and future direction - Management highlighted significant changes in the business, emphasizing employee dedication and a focus on strategic planning for continued growth [73] Question: What drove the improvement in gross margins? - The improvement was attributed to increased revenue covering fixed costs and effective cost management, alongside operational excellence [59][62] Question: Is the sales improvement sustainable? - Management expressed confidence in the ability to manage the business effectively and expand margins, indicating a positive outlook for future sales [78] Question: Insights on backlog normalization and sales improvement - Management noted that while backlog normalization was expected, the company has proven its ability to execute better than competitors and anticipates closing more business [79]

Exhibit 99.1 Nortech Systems Reports Fourth Quarter and Full Year 2023 Results Full Year Net Sales Up Nearly 4% from Prior Year; Gross Margin Increase 130 Basis Points from Prior Year EBITDA Increases to $8.0 million, Up 38.2% from Prior Year Management Commentary "As expected, we ended 2023 strong, including record revenue both in the fourth quarter and the year, continued expense management and solid margins," said Jay D. Miller, President and CEO of Nortech. "We saw encouraging normalization trends in su ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 10-K ☒ Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the fiscal year ended December 31, 2023 OR ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition period from __________ to __________ NORTECH SYSTEMS INCORPORATED (Exact name of registrant as specified in its charter) Commission file number 0-13257 State of Incorporation: Minnesota ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 10-Q (Mark One) ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to NORTECH SYSTEMS INCORPORATED Commission file number 0-13257 State of Incorporation: Minnesota IRS Employer Identification No. 41-1681094 Executive Offices: 7550 Meridian Circle N., Suite # 150, Maple Grove, MN 55369 ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to NORTECH SYSTEMS INCORPORATED Commission file number 0-13257 State of Incorporation: Minnesota IRS Employer Identification No. 41-1681094 Executive Offices: ...

For the quarterly period ended March 31, 2023 UNITED STATES SECURITIES AND EXCHANGE COMMISSION OR Washington, D. C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to NORTECH SYSTEMS INCORPORATED Commission file number 0-13257 State of Incorporation: Minnesota IRS Employer Identification No. 41-1681094 Executive Offices ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 10-K ☒ Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the fiscal year ended December 31, 2022 OR ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition period from __________ to __________ Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Act. Yes ☐ No ☒ Indicate by check ma ...

Nortech Systems Incorporated (NASDAQ:NSYS) Q4 2022 Earnings Conference Call March 17, 2023 9:00 AM ET Company Participants Chris Jones - Chief Financial Officer Jay Miller - President and Chief Executive Officer Conference Call Participants Paul Luther - Private Investor Operator Greetings and welcome to Nortech???s Fourth Quarter 2022 Earnings Call. [Operator Instructions] I will now turn the conference over to your host, Mr. Chris Jones. Please go ahead. Chris Jones Good morning and thanks operator and Ha ...

Financial Data and Key Metrics Changes - In Q3 2022, revenue totaled $35.3 million, representing a 19.8% increase from $29.5 million in Q3 2021 and over 8% growth from the previous quarter [19] - Year-to-date revenue for the first nine months of 2022 reached $98.5 million, a nearly 21% increase from $81.7 million in the same period of 2021 [19] - Adjusted EBITDA in Q3 was $2.4 million compared to $735,000 in Q3 2021, with year-to-date adjusted EBITDA at $4.7 million versus $149,000 last year [23] Business Line Data and Key Metrics Changes - Medical market revenue increased by $3.5 million or 21% year-over-year [20] - Industrial market revenue rose by $1.5 million or 16% compared to the prior year [20] - Aerospace and Defense markets saw a 26% increase, totaling $3.9 million [20] Market Data and Key Metrics Changes - The backlog was up more than 30% from prior year levels to $103 million, although it saw a slight sequential decline from $106 million at the end of Q2 2022 [18] - The largest customer in the Medical segment reported quarterly revenue growth in the mid-single digits, indicating solid spending trends on healthcare equipment, particularly in Europe and Asia [11] Company Strategy and Development Direction - The company is focused on strategic planning that emphasizes stakeholder value, including employee care and supplier partnerships [29] - Ongoing supply chain optimization activities are aimed at improving customer on-time delivery and product quality [30] - The company aims to leverage its unique capabilities and strategic fulfillment solutions to differentiate itself in the marketplace [12] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about finishing strong in 2022 and carrying momentum into 2023, with a healthy backlog and improved supply chain conditions [15] - The company is actively monitoring macroeconomic conditions and is encouraged by reports of fewer supply chain disruptions from customers [18] Other Important Information - Operating cash flow for the year-to-date was a $1 million source of cash, compared to a cash use of $2.9 million last year [24] - The company anticipates receiving $5.2 million in employee retention credit (ERC) funds, which will be used to reduce line of credit balance [26] Q&A Session Summary Question: Continued sequential revenue and margin growth into Q4 - Management expects solid Q4 performance and momentum to carry into 2023, while carefully monitoring macroeconomic conditions [34] Question: Initiatives for shareholder value recognition - Management acknowledges the importance of communicating results and plans to increase press releases and analyst coverage to enhance visibility [36] Question: Labor situation and staffing levels - The company is reasonably well-staffed, with some overtime but not to the point of burnout, while parts availability remains the primary bottleneck [38][40]