Core Insights - Nortech Systems Incorporated reported a net sales of $31.4 million for Q3 2024, a decrease of 5.9% compared to $33.4 million in Q3 2023 [2][4] - The company experienced a net loss of $739 thousand, or $0.27 per diluted share, compared to a net income of $1.2 million in the same quarter last year [2][4] - Adjusted EBITDA for Q3 2024 was $143 thousand, down 91.1% from $1.6 million in Q3 2023 [2][4] Financial Performance - Net sales for the nine months ended September 30, 2024, were $99.5 million, a decline of 3.6% from $103.3 million in the same period of 2023 [4] - Gross profit for Q3 2024 was $3.8 million, down 27.9% from $5.3 million in Q3 2023 [4] - Operating expenses increased by 4.5% to $4.5 million in Q3 2024 compared to $4.3 million in Q3 2023 [4] Management Commentary - The CEO noted that sales were impacted by customers delaying product purchases and reducing inventory, which has affected the contract manufacturing industry [2] - The company is consolidating facilities and moving programs to lower-cost locations to improve efficiency and reduce costs [2] - Management expressed optimism about the customer pipeline and the future of Nortech Systems despite current challenges [2] Backlog and Strategic Moves - As of September 30, 2024, the company reported a 90-day backlog of $29.6 million [2] - The restructuring of back office and plant operations aims to enhance service delivery and product quality [2] Cash Flow and Balance Sheet - Cash and cash equivalents at the end of Q3 2024 were $1.2 million, an increase from $1.1 million at the end of Q3 2023 [13] - Total assets as of September 30, 2024, were $77.0 million, compared to $75.1 million at the end of 2023 [11][12]
Nortech Systems Reports Third Quarter Results