Apr 09, 2002 Newark, NY
IEC Electronics Corp. (NASDAQ: IECE) announced today that it has received a three-month extension to the Company's current loan agreement.
As a result of the one-time charges and events outlined in the Company's Form 10K filed January 14, 2002, IEC was in violation of certain financial covenants as of January 11, 2002. The Company had received three previous short-term extensions to its credit agreement. This latest, longer-term extension will run through the end of June.
IEC's President and Chief Executive Officer Thomas Lovelock said, "Our recently announced workforce reductions and other cost savings are expected to lead to positive EBITDA this quarter. This extension and expected improvements in overall business performance should give us sufficient time to finalize a new credit agreement. IEC is in continuing discussions with other lending institutions and believes it will be successful in closing a new agreement."
IEC is a full service, ISO-9001 and 9002 registered electronics manufacturing services provider employing state-of-the-art production utilizing both surface mount and pin-through-hole technology. IEC offers its customers a wide range of manufacturing and management services, on either a turnkey or consignment basis, including design, prototyping, material procurement and control, concurrent engineering services, manufacturing and test engineering support, statistical quality assurance and complete resource management. Information regarding IEC can be found on its web site http://www.iec-electronics.com.
The foregoing, including the discussion regarding the Company's future prospects, contains certain forward-looking statements that involve risks and uncertainties associated with economic conditions in the electronics industry, particularly in the principal industry sectors served by the Company, changes in customer requirements and in the volume of sales to principal customers, the ability of the Company to assimilate acquired businesses and to achieve the anticipated benefits of such acquisitions, and competition and technological change. The Company's actual results of operations may differ significantly from those contemplated by such forward-looking statements as a result of these and other factors, including factors set forth in the Company's 2001 Annual Report on Form 10-K.
