Mission Statement, Vision, & Core Values (2024) of Nortech Systems Incorporated (NSYS)

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An Overview of Nortech Systems Incorporated (NSYS)

General Summary of Nortech Systems Incorporated (NSYS)

Nortech Systems Incorporated (NSYS), founded in 1994, operates as a provider of electronic manufacturing services (EMS). The company specializes in designing, engineering, and manufacturing advanced electronic assemblies and systems for various industries, including medical, industrial, aerospace, and defense.

As of 2024, Nortech Systems offers a diverse range of products and services, including:

  • Electronic assembly services
  • Design and engineering support
  • Supply chain management
  • Box build and system integration

In 2024, the company's total net sales amounted to $99.5 million for the nine months ended September 30, reflecting a decrease from $103.3 million in the same period of 2023.

Company's Financial Performance in the Latest Financial Reports

Nortech Systems reported a total net sales of $31.4 million for the three months ended September 30, 2024, down from $33.4 million in the same quarter of 2023, reflecting a decline of 5.9% year-over-year. For the nine months ended September 30, 2024, net sales decreased by 3.6% to $99.5 million compared to $103.3 million in 2023.

The breakdown of net sales by industry for the nine months ended September 30, 2024, is as follows:

Industry Net Sales (2024) Net Sales (2023) Increase/Decrease
Medical $54.0 million $59.8 million (9.7%)
Industrial $27.6 million $29.0 million (4.6%)
Aerospace and Defense $17.9 million $14.5 million 23.3%

Gross profit for the three months ended September 30, 2024, was $3.8 million, translating to a gross margin of 12.2%, down from 15.9% in the same quarter of 2023. For the nine months ended September 30, 2024, gross profit was $13.9 million, with a gross margin of 14.0%, compared to 15.8% in the previous year.

Operating loss for the three months ended September 30, 2024, was $(467,000), compared to an operating income of $1.1 million in the same period in 2023. Net loss for the three months was $(739,000), resulting in a basic net loss per share of $(0.27).

Introduction to Company as a Leader in the Industry

Nortech Systems has established itself as a leader in the electronic manufacturing services industry, known for its commitment to quality and customer service. The company has leveraged its expertise to meet the rising demand in the aerospace and defense sectors, which saw a significant growth of 23.3% in net sales for the nine months ended September 30, 2024.

With a focus on innovation and operational efficiency, Nortech continues to adapt to market changes and customer needs, positioning itself as a reliable partner in the EMS landscape. For further insights into why Nortech Systems remains a successful player in the industry, additional information can be found below.




Mission Statement of Nortech Systems Incorporated (NSYS)

Mission Statement of Nortech Systems Incorporated (NSYS)

Nortech Systems Incorporated (NSYS) is dedicated to providing innovative and high-quality solutions in the fields of medical, industrial, and aerospace sectors. The company's mission statement encapsulates its commitment to excellence, customer satisfaction, and sustainable growth.

Core Component 1: Quality Products and Services

Nortech Systems emphasizes the importance of delivering high-quality products and services. In 2024, the company reported net sales of $99.5 million for the nine months ended September 30, a slight decrease of 3.6% from the previous year . Despite this decline, the gross profit margin remained relatively stable at 14.0% .

Metric 2024 (Nine Months) 2023 (Nine Months) Change (%)
Net Sales $99,513,000 $103,278,000 -3.6%
Gross Profit $13,900,000 $16,277,000 -14.6%
Gross Margin 14.0% 15.8% -180 bps

Core Component 2: Customer Satisfaction

Customer satisfaction is a cornerstone of Nortech's mission. The company strives to meet the evolving needs of its customers. In the medical segment, net sales increased by 1.2% in Q3 2024 compared to Q3 2023, indicating strong customer demand . The total backlog as of September 30, 2024, was $69.77 million, reflecting a 31.8% decrease year-over-year, as customers adjusted their inventory levels .

Core Component 3: Sustainable Growth

Nortech is committed to sustainable growth through strategic investments and operational efficiencies. The company’s recent restructuring efforts, including a consolidation of its facilities, aim to enhance operational efficiency. Total operating expenses for the nine months ended September 30, 2024, were $12.87 million, down from $13.00 million in 2023 . Nortech's restructuring charges amounted to $267,000 for the nine months ended September 30, 2024 .

Operating Expense Metrics 2024 (Nine Months) 2023 (Nine Months) Change
Total Operating Expenses $12,868,000 $13,001,000 -1.0%
Restructuring Charges $267,000 $0 Newly incurred



Vision Statement of Nortech Systems Incorporated (NSYS)

Vision Statement of Nortech Systems Incorporated (NSYS)

The vision statement of Nortech Systems Incorporated (NSYS) as of 2024 focuses on innovation, customer satisfaction, and operational excellence across its core markets. The company aims to be a leader in the Electronics Manufacturing Services (EMS) sector, particularly in the Medical, Aerospace & Defense, and Industrial markets.

Commitment to Innovation

Nortech Systems emphasizes its dedication to continuous improvement and innovation. The company aims to leverage cutting-edge technology to enhance product offerings and operational efficiency. As of September 30, 2024, the company reported a total investment of $1,400 in research and development for the nine months ended, reflecting its commitment to innovation .

Customer-Centric Approach

Nortech Systems prioritizes customer satisfaction as a core component of its vision. The company reports a net sales figure of $31,407 for the three months ended September 30, 2024, a decrease of 5.9% from the previous year, indicating a focus on understanding customer needs and adapting to market dynamics . The 90-day shipment backlog as of September 30, 2024, was $29,631, demonstrating the company's ability to fulfill customer orders promptly .

Operational Excellence

The vision statement also encompasses a commitment to operational excellence. Nortech Systems aims to streamline its manufacturing processes and enhance supply chain management. For the nine months ended September 30, 2024, the gross profit margin was reported at 14.0%, down from 15.8% in the previous year, indicating a need for improved operational efficiencies .

Financial Performance Overview

As of the end of the third quarter of 2024, Nortech Systems reported total net sales of $99,513, a decrease of 3.6% compared to the same period in 2023. The decrease in sales was attributed to inventory re-balancing and reduced demand in certain markets . The company also reported a net loss of $739 for the three months ended September 30, 2024, compared to a net income of $1,207 in the same period of 2023 .

Table: Financial Metrics Overview
Metric 2024 (Q3) 2023 (Q3) Change (%)
Net Sales $31,407 $33,369 (5.9)
Gross Profit $3,835 $5,319 (27.9)
Operating Income $(467) $1,124 (141.5)
Net Income $(739) $1,207 (161.2)
Gross Margin (%) 12.2 15.9 (370 bps)
Strategic Market Focus

Nortech Systems has identified key markets for growth, including the Medical sector, which accounted for $53,991 in net sales for the nine months ended September 30, 2024. This reflects a 9.7% decrease compared to the previous year, emphasizing the company's focus on adapting to changing market conditions .

Conclusion

In summary, Nortech Systems Incorporated's vision statement for 2024 revolves around a commitment to innovation, customer satisfaction, and operational excellence, supported by strategic financial management and market focus.




Core Values of Nortech Systems Incorporated (NSYS)

Integrity

Integrity is foundational to Nortech Systems Incorporated's operations and relationships with stakeholders. This core value emphasizes the importance of honesty and transparency in all business dealings.

In 2024, Nortech Systems demonstrated its commitment to integrity by maintaining open communication with customers regarding product delivery timelines and any potential supply chain disruptions. The company has implemented a robust compliance program that ensures adherence to ethical standards across all operations.

Innovation

Innovation drives Nortech Systems’ growth and competitiveness in the market. It fosters a culture that encourages creativity and the development of new ideas and technologies.

In 2024, Nortech Systems invested approximately $893,000 in research and development, reflecting a focus on creating advanced medical devices and improving manufacturing processes. This investment has led to the launch of several new products, which have contributed to a 1.2% increase in medical sales compared to the previous year.

Customer Commitment

Customer Commitment signifies Nortech's dedication to delivering exceptional service and value to its clients. The company actively seeks feedback to improve its offerings and enhance customer satisfaction.

Nortech's customer-centric initiatives include regular surveys and direct engagement with clients to understand their needs better. As a result, net sales to medical customers reached $18.047 million in Q3 2024, with a notable increase in product offerings tailored to customer specifications.

Collaboration

Collaboration is essential for fostering teamwork and building strong partnerships both internally and externally. Nortech Systems promotes a collaborative environment that enhances problem-solving and innovation.

The company has established strategic alliances with several technology partners, which have facilitated the development of integrated solutions for its clients. This collaborative approach has contributed to a significant 23.3% increase in net sales in the aerospace and defense sector in the first nine months of 2024.

Excellence

Excellence reflects Nortech Systems’ pursuit of the highest standards in quality and performance. The company is committed to continuous improvement in all aspects of its operations.

In 2024, Nortech's gross profit margin was 14.0%, compared to 15.8% in 2023. Despite facing challenges, the company has implemented quality management systems that aim to enhance operational efficiency and reduce costs, ensuring that it meets customer expectations consistently.

Core Value Description 2024 Initiatives Financial Impact
Integrity Commitment to honesty and transparency Robust compliance program Maintained customer trust
Innovation Encouragement of creativity and new ideas $893,000 in R&D investments 1.2% increase in medical sales
Customer Commitment Focus on exceptional service and value Regular customer feedback initiatives $18.047 million in medical sales
Collaboration Building strong internal and external partnerships Strategic alliances with technology partners 23.3% increase in aerospace and defense sales
Excellence Pursuit of high standards in quality Implementation of quality management systems Gross profit margin of 14.0%

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Resources:

  1. Nortech Systems Incorporated (NSYS) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Nortech Systems Incorporated (NSYS)' financial performance, including balance sheets, income statements, and cash flow statements.
  2. SEC Filings – View Nortech Systems Incorporated (NSYS)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.