Core Insights - Nortech Systems Incorporated reported a significant decline in financial performance for Q1 2025 compared to Q1 2024, with net sales dropping by 21.4% to $26.9 million and a net loss of $1.3 million [6][10]. Management Commentary - The company has successfully transitioned and stabilized its operations, focusing on profitability and growth in core market segments, particularly aerospace & defense and medical imaging [2]. - Management acknowledged that tough decisions have led to short-term revenue and EBITDA declines but are expected to position the company for long-term growth [2]. - Delays in customer approvals for production transfers from the closed Blue Earth facility to the Bemidji plant are being addressed, with expectations to clear the backlog in Q2 2025 [2]. Financial Performance - Q1 2025 financial results showed net sales of $26.9 million, a gross profit of $3.1 million, and operating expenses of $4.7 million, leading to a net loss of $1.3 million [6][10]. - Adjusted EBITDA for Q1 2025 was a loss of $1.0 million, compared to a profit of $1.6 million in Q1 2024, reflecting a significant decline of 161.1% [6][10]. - The company reported a 90-day backlog of $26.7 million as of March 31, 2025, indicating potential future revenue [10]. Operational Strategy - Nortech is focusing on consolidating operations to improve efficiency and reduce costs, which is part of a strategic repositioning to better respond to customer needs and near-shore supply chains [4]. - The company is committed to innovation in fiber optic technologies, evidenced by the issuance of two new patents in the past year [2]. Summary Financial Information - Key financial metrics for Q1 2025 compared to Q1 2024 include: - Net sales: $26.9 million (down from $34.2 million) - Gross profit: $3.1 million (down from $5.4 million) - Operating expenses: $4.7 million (up from $4.3 million) - Net loss: $1.3 million (compared to a profit of $0.8 million) [6][10].

Core Insights - Nortech Systems Incorporated will hold a live conference call and webcast on May 14, 2025, at 3:30 p.m. Central Time to discuss its first quarter 2025 financial results [1] - The call will be hosted by the CEO Jay D. Miller and CFO Andrew D. C. LaFrence [1] Company Overview - Nortech Systems is a leading provider of engineering and manufacturing solutions for complex electromedical and electromechanical products [2] - The company serves various markets including medical imaging, medical devices, aerospace & defense, and industrial sectors [2] - Nortech's design services cover the entire process from concept development to commercial design, including various engineering disciplines [2] - The company has vertically integrated manufacturing and supply chain capabilities, focusing on wire/cable/interconnect assemblies and printed circuit board assemblies [2] - Nortech is headquartered in Maple Grove, Minnesota, and operates six manufacturing locations and design centers across the U.S., Latin America, and Asia [2] - The company is publicly traded on the NASDAQ under the symbol NSYS [2]