Business
Nortech Systems Announces 2022 Fourth Quarter and Full Year Results
Fourth Quarter Revenue Up 6.5% from Prior Year; Gross Margin Improvement of 6.3 percentage points to 14.3% MINNEAPOLIS--(BUSINESS WIRE)-- Nortech Systems
About this update from Nortech Systems Incorporated
[{"type":"text","content":"\nFourth Quarter Revenue Up 6.5% from Prior Year;\nGross Margin Improvement of 6.3 percentage points to 14.3%\n\n MINNEAPOLIS--(BUSINESS WIRE)--\nNortech Systems Incorporated (Nasdaq: NSYS) (the \"Company\"), a leading provider of engineering and manufacturing solutions for complex electromedical and electromechanical products serving the medical, industrial and defense markets, reported 2022 fourth quarter and full year results for the period ended December 31, 2022.\n\n2022 Fourth Quarter and Full Year Highlights\n\n\nFourth quarter 2022 revenue of $35.6 million, up 6.4% compared to the fourth quarter of 2021.\n\n\nFull year revenue of $134.1 million, up 16.5% from 2021.\n\n\nFourth quarter gross margin of 14.3%, up 6.3 percentage points from gross margin of 8.0% in the fourth quarter of 2021.\n\n\nFull year earnings before interest, taxes, depreciation, and amortization (EBITDA) of $5.8 million, up from the ($0.2) million EBITDA loss in the prior year period.\n\n\nQuarter-end backlog of $104.0 million on December 31, 2022, up 9.6% compared to December 31, 2021.\n\n\nManagement Commentary\n\n“Our double-digit revenue growth last year – culminating with both a record quarter and record year in revenue – is a credit to excellent collaboration among our dedicated employees, suppliers and customers,” stated Jay D. Miller, President & CEO of Nortech Systems. “Fourth quarter revenue growth is notable in light of the strong revenue level for the same period in 2021. I want to thank the entire Nortech team for their contributions to this achievement.”\n\n“Throughout 2022, we saw a gradual improvement in supply chain bottlenecks and component lead times,” noted Mr. Miller. “These improvements enabled customers to slowly reduce their inventory levels. Our operations are designed to be responsive to fluctuating demand and economic forces, facilitated by our inventory management technology and experienced supply chain personnel.”\n\n“For our key strategic customers, across medical, industrial and defense markets, Nortech’s team members build complex products and perform highly technical services, often on tight deadlines,” Miller commented, “Effectively executing this low-volume, high-mix model differentiates us while helping our customers achieve world-class quality, delivery and competitiveness.”\n\n2022 Fourth Quarter and Full Year Res...