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Nortech Systems Incorporated (NSYS-2.59%) has submitted its 10-K filing for the fiscal year ended December 31, 2024.
The filing reveals a decrease in net sales to $128.1 million from $139.3 million in the previous year, marking an 8% decline. The decrease is attributed to inventory re-balancing and timing of customer product launches across various markets.
Cost of goods sold for the year was $111.4 million, resulting in a gross profit of $16.7 million, down from $23.1 million in the previous year. This decline in gross profit is due to lower operating leverage and costs associated with the closure of the Blue Earth facility.
Operating expenses totaled $16.9 million, including $571,000 in restructuring charges related to the Blue Earth facility closure. General and administrative expenses decreased slightly to $11.7 million.
The company reported a net loss of $1.3 million for the year, compared to a net income of $6.9 million in 2023. The loss was driven by reduced net sales and increased restructuring costs.
Cash used in operating activities was $2.3 million, compared to $1.8 million provided by operations in 2023. This was due to the timing of accounts payable payments and bonus expenses.
Nortech's line of credit with Bank of America was amended during the year, with borrowings increasing to $8.7 million from $5.8 million in 2023. The credit agreement was amended to waive certain financial covenants until the third quarter of 2025.
The company operates in the Medical Device, Medical Imaging, Aerospace and Defense, and Industrial markets, with over 50% of net sales coming from medical-related markets.
Nortech continues to focus on expanding its capabilities and footprint to meet changing market requirements and maintain competitiveness in the EMS industry.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Nortech Systems Incorporated annual 10-K report dated March 31, 2025. To report an error, please email earnings@qz.com.