Financial Data and Key Metrics Changes - Net sales for Q1 2025 totaled $26.9 million, a decrease of 21.4% from $34.2 million in Q1 2024, impacted by delays in customer approvals and manufacturing efficiencies [15][16] - Gross profit for Q1 2025 was $3.1 million, or 11.1% of net sales, compared to $5.4 million, or 15.9% in the same quarter last year, due to lower sales and reduced facility utilization [16] - Adjusted EBITDA for Q1 2025 was negative $1 million, down from $1.6 million in Q1 2024, reflecting ongoing operational challenges [18] Business Line Data and Key Metrics Changes - The aerospace and defense segment faced revenue impacts due to the closure of the Blue Earth facility and delays in customer approvals for the transfer of programs to the Bemidji facility [4][5] - Customer backlog has stabilized as of March 31, 2025, consistent with the year-end 2024 backlog, with expectations for improved order volume as approvals are completed [16] Market Data and Key Metrics Changes - The company is closely monitoring supply chain strategies as customers evaluate their operations in light of tariff uncertainties, particularly regarding facilities in China and Mexico [6][7] - Opportunities are emerging in China as companies seek to consolidate manufacturing within the region, aligning with the company's nearshoring strategy [7] Company Strategy and Development Direction - The company is focused on reducing operating costs and aligning operations with market demand to drive sustainable long-term EBITDA growth [21] - A three-tier global manufacturing strategy across the US, Mexico, and China is in place to enhance competitiveness and operational flexibility [10][11] - The company is investing in engineering expertise and product innovation, particularly in fiber optic technologies, to meet evolving customer needs [24][26] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the stabilization of customer backlogs and the potential for revenue recovery in the second half of 2025 [5][9] - The company is committed to monitoring geopolitical uncertainties and adjusting strategies to mitigate risks associated with tariffs and supply chain disruptions [6][7] Other Important Information - The company plans to further reduce inventory investments throughout 2025, aiming to improve cash flow and operational efficiency [19][21] - The focus on sustainability and innovation in fiber optics is expected to align with industry trends and customer demands for environmentally friendly solutions [26][27] Q&A Session Summary Question: What are the expectations for future revenue recovery? - Management expects revenue recovery in the second half of 2025 as customer approvals are completed and operational efficiencies improve [5][9] Question: How is the company addressing tariff impacts? - The company is closely monitoring tariff implications and adjusting pricing and sourcing strategies to mitigate adverse effects [7] Question: What innovations are being pursued in product development? - The company is advancing fiber optic technologies, including EBX and AOX, to enhance product performance and meet customer needs [24][26]

Exhibit 99.1 Nortech Systems Reports First Quarter Results MINNEAPOLIS – May 14, 2025 – Nortech Systems Incorporated (Nasdaq: NSYS) ("Nortech" or the "Company"), a leading provider of engineering and manufacturing solutions for complex electromedical and electromechanical products serving the medical imaging, medical device, industrial and aerospace & defense markets, reported financial results for the first quarter ended March 31, 2025. 2025 Q1 Highlights: Management Commentary "Over the past few quarters, ...

MINNEAPOLIS, May 14, 2025 (GLOBE NEWSWIRE) -- Nortech Systems Incorporated (Nasdaq: NSYS) (“Nortech” or the “Company”), a leading provider of engineering and manufacturing solutions for complex electromedical and electromechanical products serving the medical imaging, medical device, industrial and aerospace & defense markets, reported financial results for the first quarter ended March 31, 2025. 2025 Q1 Highlights: ●Net sales of $26.9 million ●Net loss of ($1.3) million, or ($0.48) per diluted share ●Adju ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION For the transition period from to NORTECH SYSTEMS INCORPORATED Commission file number 0-13257 Washington, D. C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 State of Incorporation: Minnesota IRS Employer Identification No. 41-1681094 Executive Offices ...

MINNEAPOLIS, May 09, 2025 (GLOBE NEWSWIRE) -- Nortech Systems Incorporated (Nasdaq: NSYS) (the “Company”), a leading provider of engineering and manufacturing solutions for complex electromedical and electromechanical products serving the medical imaging, medical device, aerospace & defense and industrial markets, will hold a live conference call and webcast at 3:30 p.m. Central Time on Wednesday May 14, 2025, to discuss the Company's first quarter 2025 financial results. The call will be hosted by Jay D. M ...

Financial Data and Key Metrics Changes - Net sales for Q4 2024 totaled $28.6 million, a decrease of 20.6% from $36.1 million in Q4 2023 [22] - For the year ended December 31, 2024, net sales were $128.1 million, down 8% from $139.3 million in 2023 [22] - Gross profit for Q4 2024 was $2.8 million, or 9.9% of net sales, compared to $6.8 million, or 18.9% of net sales in Q4 2023 [25] - Adjusted EBITDA for Q4 2024 was a negative $585,000, compared to a positive $3.2 million in Q4 2023 [29] - Year-end 2024 adjusted EBITDA was $2.1 million, down from $8 million in 2023 [30] Business Line Data and Key Metrics Changes - Aerospace and defense net sales were negatively impacted by the closure of the Blue Earth facility and delays in customer approvals [7] - Revenue headwinds were noted in the industrial and medical sectors due to reduced inventory investments and delayed product launches [23] Market Data and Key Metrics Changes - The company experienced a reduction in customer backlog in Q4 2024 as customers requested shorter lead times with new orders [24] - The imposition of tariffs may significantly impact contract manufacturers, including Nortech, particularly regarding operations in China and Mexico [8][10] Company Strategy and Development Direction - The company is focused on consolidating its North American footprint and moving customer programs to better fit customer needs, which is expected to improve long-term EBITDA generation [16] - Nortech is investing in core infrastructure and leadership teams to drive long-term growth, including a fully staffed business development team [14] - The company is pivoting towards fiber optic technology to enhance product performance and align with sustainability goals [44] Management's Comments on Operating Environment and Future Outlook - Management expects the aerospace and defense business to normalize in the second half of 2025, despite ongoing headwinds in the first half [8] - The company remains vigilant in monitoring trade policies and geopolitical uncertainties that may impact operations [11] - Management is optimistic about future growth opportunities, particularly in fiber optic technology and AI capabilities [42][48] Other Important Information - The company completed a 30% reduction in lease space at its Maple Grove facility, resulting in annual savings of at least $1.6 million [12] - Cash and cash equivalents totaled $916,000 as of December 31, 2024, down from $1.7 million in 2023 [30] Q&A Session Summary Question: What are the expectations for the aerospace and defense market? - Management expects the aerospace and defense business to return to normal in the second half of 2025, despite current challenges [8] Question: How is the company addressing the impact of tariffs? - The company is closely monitoring tariff impacts and adjusting customer pricing and sourcing strategies as needed [10] Question: What are the company's priorities for 2025? - The company aims to strengthen its balance sheet, reduce inventory investments, and align operations with market demand for sustainable long-term EBITDA growth [34]

Nortech Systems Incorporated (NASDAQ:NSYS) Q4 2024 Earnings Conference Call March 31, 2025 4:30 PM ET Company Participants Jay Miller - President and Chief Executive Officer Andrew LaFrence - Chief Financial Officer and Senior Vice President of Finance Operator Good afternoon, ladies and gentlemen, and welcome to the Nortech Systems Incorporated Fourth Quarter 2024 Earnings Conference Call. With me on the line today are Jay Miller, President and Chief Executive Officer; and Andrew LaFrence, Chief Financial ...

Financial Performance - Fourth quarter net sales were $28.6 million, a decrease of 20.6% compared to $36.1 million in Q4 2023[6] - The company reported a net loss of $1.5 million, or $0.54 per diluted share, compared to a net income of $4.4 million, or $1.59 per diluted share in Q4 2023[4][6] - Adjusted EBITDA for Q4 2024 was a loss of $585 thousand, down 118.4% from $3.2 million in Q4 2023[6] - Gross profit for Q4 2024 was $2.8 million, a decline of 58.7% from $6.8 million in Q4 2023[6] - Net loss for the year ended December 31, 2024, was $1,295 million, a significant decrease from a net income of $6,874 million in 2023[15] - EBITDA for the twelve months ended December 31, 2024, was $1,543 million, down from $8,003 million in 2023[16] - Adjusted EBITDA for the year ended December 31, 2024, was $2,114 million, compared to $8,003 million in 2023[16] - The company reported a gross profit margin of 16.1% for Q4 2024, down from 16.6% in Q4 2023[18] Cash Flow and Liquidity - Cash and cash equivalents at the end of 2024 were $916 million, down from $1,675 million at the end of 2023[15] - Net cash used in operating activities for the year was $2,250 million, compared to net cash provided of $1,769 million in 2023[15] - Total cash and restricted cash reported in the consolidated statements of cash flows was $916 million at the end of 2024, down from $1,675 million in 2023[15] - Proceeds from the line of credit for the year were $129,793 million, with payments totaling $126,944 million[15] Operational Changes and Strategy - The company anticipates clearing the majority of the approval backlog for defense customer transfers by Q2 2025, which is expected to improve sales[3] - Nortech has completed a significant restructuring of its operations to enhance efficiency and reduce costs, focusing on high-quality product delivery[3] - Investments in research and development, particularly in fiber optics technologies, are expected to position the company for long-term growth[3] - The company is actively monitoring regulatory changes and geopolitical uncertainties that may impact its global operations[3] Backlog and Accounts Receivable - The 90-day backlog as of December 31, 2024, was $26.5 million, indicating potential future revenue[4] - The company experienced a significant change in accounts receivable, with an increase of $4,405 million in 2024 compared to a decrease of $3,432 million in 2023[15] Other Expenses - The company incurred $571 thousand in retention bonuses and other expenses related to the closure of the Blue Earth, Minnesota facility[17] - Operating expenses decreased slightly by 2.4% to $4.0 million in Q4 2024 from $4.2 million in Q4 2023[6]

MINNEAPOLIS, March 31, 2025 (GLOBE NEWSWIRE) -- Nortech Systems Incorporated (Nasdaq: NSYS) ("Nortech" or the "Company"), a leading provider of engineering and manufacturing solutions for complex electromedical and electromechanical products serving the medical, industrial and defense markets, reported financial results for the fourth quarter ended December 31, 2024. "We have just completed a significant restructuring of our back office and plant operations to better serve our customers by delivering high-q ...

Financial Performance - Net sales for the year ended December 31, 2024, were $128,133, a decrease of $11,199 or 8.0% compared to $139,332 in 2023[106] - Gross profit for the year ended December 31, 2024, was $16,722, down $6,382 or 27.6% from $23,104 in 2023, resulting in a gross margin percentage of 13.1%[111] - Operating loss for the year ended December 31, 2024, was $(195), compared to operating income of $5,953 in 2023, representing a decrease of 103.3%[115] - Net loss for 2024 was $1,295, or $0.47 per diluted share, compared to net income of $6,874, or $2.38 per diluted share in 2023[118] Order Backlog and Shipments - The total order backlog as of December 31, 2024, was $65,852, reflecting a 28.2% decrease from December 31, 2023[108] - The 90-day shipment backlog as of December 31, 2024, was $26,451, down 24.8% from December 31, 2023[107] Expenses and Charges - Selling expenses decreased by $152, or 4.2%, in 2024 compared to 2023 due to lower incentive compensation[113] - Restructuring charges for 2024 amounted to $571 related to the closure of the Blue Earth facility[114] Cash Flow and Financing - Cash used in operating activities for the year ended December 31, 2024 was $2,250, compared to cash provided by operations of $1,769 for 2023, indicating a significant decrease in operational cash flow[125] - Net cash provided by financing activities in 2024 was $2,765, mainly from net proceeds of $2,849 from the line of credit and $345 from notes payable, contrasting with cash used of $1,281 in 2023[127] - The company replaced its asset-backed line of credit with a $15,000 Senior Secured Revolving Line of Credit on February 29, 2024[120] - The financing agreement with China Construction Bank provides a line of credit of 10,000,000 RMB (approximately 1.4 million USD) expiring on September 9, 2025, with an interest rate of approximately 4% as of December 31, 2024[124] Assets and Inventory - As of December 31, 2024, the company recorded a contract asset of $13,792 for unbilled customer net sales included in net sales[132] - The company had an inventory reserve of $1,446 as of December 31, 2024, reflecting ongoing evaluations of slow-moving and excess inventory[135] Tax Positions - The reserve for uncertain tax positions was $97 as of December 31, 2024, indicating potential challenges in tax positions taken by the company[137] - A tax benefit of $2,600 was recorded in 2023 due to the reversal of a previously established valuation allowance against net U.S. deferred tax assets[136] - The company anticipates future adjustments to the deferred tax asset valuation allowance based on changes in expected realizations, which could materially affect financial results[136] Impairment and Valuation - The company has no long-lived asset impairment as of December 31, 2024, despite its common stock trading below net equity value[133]