IEC ELECTRONICS CORP (Form: 8-K, Received: 03/13/2019 09:16:16)

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported) - March 11, 2019

IEC ELECTRONICS CORP.

(Exact Name of Registrant as Specified in its Charter)

(State or Other Jurisdiction of Incorporation)



001-34376	13-3458955
(Commission File Number)	(IRS Employer Identification No.)

1 05 Norton Street, Newark, New York 14513

(Address of principal executive offices)(Zip code )

(Registrant’s Telephone Number, Including Area Code)

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o



Section 1		Registrant’s Business and Operations
Item 1.01		Entry into a Material Definitive Agreement.

Effective as of March 11, 2019, IEC Electronics Corp. (the “Company”) and Manufacturers and Traders Trust Company (“M&T Bank”) entered into the Eighth Amendment to Fifth Amended and Restated Credit Facility Agreement (the “Eighth Amendment”), that amended the Fifth Amended and Restated Credit Facility Agreement dated as of December 14, 2015 between M&T Bank and the Company, as previously amended (collectively, the “Credit Agreement”). The Eighth Amendment modified the definition of “Borrowing Base” to increase the amount of certain availability limits contained within the definition.

Terms used herein and otherwise undefined have the meanings given them in the Eighth Amendment. The foregoing summary of the Eighth Amendment does not purport to be complete and is qualified in its entirety by reference to the full text of the Eighth Amendment filed as Exhibit 10.1 to this report.



Section 7		Regulation FD
Item 7.01		Regulation FD Disclosure.

The Company will post slides to the Investors section of its website that will accompany the Company's presentation at it's annual meeting of stockholders on March 13, 2019 . The slides are attached to this Form 8-K as Exhibit 99.1.

The information furnished pursuant to this Item 7.01, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or otherwise subject to the liabilities under such section and shall not be deemed to be incorporated by reference into any filing of the Company under the Securities Act of 1933, as amended, or the Exchange Act.



Section 9		Financial Statements and Exhibits
Item 9.01		Financial Statements and Exhibits.

(d) Exhibits

Exhibit No.		Description
Exhibit 10.1		Eighth Amendment to Fifth Amended and Restated Credit Facility Agreement dated as of March 11, 2019
Exhibit 99.1		Slides for March 13, 2019 Annual Meeting Presentation

Neither the filing or furnishing of any exhibit to this report nor the inclusion in such exhibit of a reference to the Company’s Internet address shall, under any circumstances, be deemed to incorporate the information available at such address into this report. The information available at the Company’s Internet address is not part of this report.

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.



			IEC Electronics Corp.
			(Registrant)

Date:	March 13, 2019	By:	/s/ Thomas L. Barbato
			Thomas L. Barbato
			Senior Vice President and Chief Financial Officer

FIFTH AMENDED AND RESTATED CREDIT FACILITY AGREEMENT

THIS EIGHTH AMENDMENT TO FIFTH AMENDED AND RESTATED CREDIT FACILITY AGREEMENT (this “ Amendment ”) is made effective as of the 11th day of March, 2019 by and between IEC ELECTRONICS CORP., a corporation formed under the laws of the State of Delaware (“ Borrower ”) and MANUFACTURERS AND TRADERS TRUST COMPANY (“ Lender ”).

W I T N E S S E T H:

WHEREAS, the parties hereto are parties to a Fifth Amended and Restated Credit Facility Agreement dated as of December 14, 2015, as amended by that certain First Amendment to Fifth Amended and Restated Credit Facility Agreement dated as of June 20, 2016, that certain Second Amendment to Fifth Amended and Restated Credit Facility Agreement dated as of November 28, 2016, that certain Third Amendment to Fifth Amended and Restated Credit Facility Agreement dated as of May 5, 2017, that certain Fourth Amendment to Fifth Amended and Restated Credit Facility Agreement dated as of January 26, 2018, that certain Fifth Amendment to Fifth Amended and Restated Credit Facility Agreement dated as of April 20, 2018, that certain Sixth Amendment to Fifth Amended and Restated Credit Facility Agreement dated as of August 2, 2018, and that certain Seventh Amendment to Fifth Amended and Restated Credit Facility Agreement dated as of January 9, 2019 (as amended, and as the same may be further amended, modified, supplemented or restated from time to time, the “ Credit Agreement ”);

WHEREAS, Borrower has requested and the Lender has agreed to make certain amendments to the Credit Agreement, all on the terms and conditions herein set forth.

NOW, THEREFORE, for due consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

1. DEFINITIONS . All capitalized terms used herein and not defined shall have the meaning given such terms in the Credit Agreement.

2. AMENDMENTS . Effective as of the date of this Amendment:

(A) Section 1.1 of the Credit Agreement is hereby amended by amending and restating the following definition in its entirety to read as follows:

““ Borrowing Base ” means, at any time, an amount equal to the sum of (a) eighty-five percent (85%) of the Eligible Accounts of the Credit Parties; plus (b) (i) from the Third Amendment Closing Date until the first Advance Rate Reset, the lesser of (A) thirty-five percent (35%) of Eligible Inventories (excluding work in process) and (B) Three Million Seven Hundred Fifty Thousand Dollars ($3,750,000), and (ii) upon each Advance Rate Reset, the lesser of (A) eighty-five percent (85%) of the then updated Eligible Inventory NOLV and (B) Fourteen Million Dollars ($14,000,000), minus (c) Reserves.

The Borrowing Base shall be computed based on the Borrowing Base Report required by this Agreement and most recently delivered to and accepted by the Lender in its sole and absolute discretion. In the event the Borrower fails to furnish a Borrowing Base Report, or in the event the Lender believes that a Borrowing Base Report is no longer accurate, valid, or current (with current defined as information provided aged no more than forty-five (45) days) the Lender may, in its sole and absolute discretion exercised from time to time and without limiting other rights and remedies under this Agreement, suspend the making of or limit Revolving Credit Loans. The Borrowing Base shall be subject to reduction by the amount of Reserves applicable from

time to time, and by the amount of any Account or any Inventory that was included in the Borrowing Base but that the Lender determines fails to meet the respective criteria applicable from time to time for Eligible Accounts or Eligible Inventories.

Without implying any limitation on the Lender’s discretion with respect to the Borrowing Base, the criteria for Eligible Accounts and for Eligible Inventories contained in the respective definitions of Eligible Accounts and of Eligible Inventories are in part based upon the business operations of the Credit Parties existing on or about the Closing Date and upon information and records furnished to the Lender by the Credit Parties. If at any time or from time to time hereafter, the business operations of one or more of the Credit Parties change or such information and records furnished to the Lender is incorrect or misleading, the Lender in its discretion, may at any time and from time to time during the duration of this Agreement change such criteria or add new criteria. The Lender will communicate such changed or additional criteria to the Borrower from time to time, which communication shall be either orally or in writing.”

(B) Section 1.1 of the Credit Agreement is hereby amended by adding the following definition thereto:

““ Eighth Amendment Closing Date ” means March 11, 2019.”

3. REPRESENTATIONS AND WARRANTIES. Borrower hereby makes the following representations and warranties to the Lender as of the Eighth Amendment Closing Date, each of which shall survive the effectiveness of this Amendment and continue in effect as of the Eighth Amendment Closing Date so long as any Obligations remain unpaid:

3.1 Authorization . Borrower has full power and authority to borrow under the Credit Agreement, as amended by this Amendment, and to execute, deliver and perform this Amendment and any documents delivered in connection with it and all other related documents and transactions, all of which have been duly authorized by all proper and necessary corporate action. The execution and delivery of this Amendment by Borrower will not violate the provisions of, or cause a default under, Borrower’s Organizational Documents, any law or any agreement to which Borrower is a party or by which it or its assets are bound.

3.2 Binding Effect . This Amendment has been duly executed and delivered by Borrower, and the Credit Agreement, as amended by this Amendment, is the legal, valid and binding obligation of Borrower enforceable against Borrower in accordance with its terms, except to the extent that enforcement of any such obligations of the Borrower may be limited by bankruptcy, insolvency, reorganization or similar laws of general application affecting the rights and remedies of creditors generally.

3.3 Consents; Governmental Approvals . Except as may be specifically identified in a written agreement to which Borrower and Lender are parties, no consent, approval or authorization of, or registration, declaration or filing with, any Governmental Authority or any other Person is required in connection with the valid execution, delivery or performance of this Amendment or any other document executed and delivered by Borrower herewith or in connection with any other transactions contemplated hereby.

3.4 Representations and Warranties . The representations and warranties contained in the Credit Agreement, as amended by this Amendment, are true on and as of the Eighth Amendment Closing Date with the same force and effect as if made on and as of the Eighth Amendment Closing Date, except for those representations and warranties that by their terms are made as of a specific date, which representations and warranties Borrower hereby remakes as of such date.

3.5 No Events of Default . No Default or Event of Default has occurred or is continuing.

3.6 No Material Misstatements . Neither this Amendment nor any document delivered to Lender by Borrower or any Credit Party to induce Lender to enter into this Amendment contains any untrue statement of a material fact or, taken as a whole with the other Loan Documents, omits to state a material fact necessary to make the statements herein or therein not misleading in light of the circumstances in which they were made.

4. CONDITIONS OF AMENDMENT. The Lender shall have no obligation to execute or deliver this Amendment until each of the following conditions shall have been satisfied:

4.1 Authorization . Borrower shall have taken all appropriate corporate action to authorize, and its directors, if and as required by Borrower’s Organizational Documents, shall have adopted resolutions authorizing the execution, delivery and performance of this Amendment and the taking of all other action contemplated by this Amendment, and Lender shall have been furnished with copies of all such corporate action, certified by an authorized officer of Borrower as being true and correct and in full force and effect without amendment on the Eighth Amendment Closing Date, and such other corporate documents as Lender may request.

4.2 Consents . Borrower shall have delivered to Lender any and all consents, if any, necessary to permit the transactions contemplated by this Amendment.

4.3 Fees . Borrower shall have paid to the Lender all reasonable fees and disbursements of Lender’s counsel and all reasonable out-of-pocket expenses incurred by Lender, recording fees, search fees, charges and taxes in connection with this Amendment and all transactions contemplated hereby or made other arrangements with respect to such payment as are satisfactory to Lender; provided, that such payments may, alternatively, be provided post-closing to the extent consented to by Lender.

4.4 Deliveries . Borrower shall have delivered to Lender, each of the following documents, duly executed by the Borrower or as specified: (i) this Amendment, (ii) a Reaffirmation executed by the Borrower and each of the Guarantors, and (iii) such additional documents, consents, authorizations, insurance certificates, governmental consents and other instruments and agreements as Lender or its counsel may reasonably require (including for purposes of evidencing and/or facilitating Borrower’s and Lender’s compliance with all applicable laws and regulations, including all “know your customer” rules in effect from time to time pursuant to the Bank Secrecy Act, USA PATRIOT Act and other applicable laws) and all documents, instruments and other legal matters in connection with the Loan Documents shall be reasonably satisfactory to Lender and its counsel.

4.5 Representations and Warranties . The representations and warranties set forth in this Amendment and in the Loan Documents shall be true, correct and complete on the Eighth Amendment Closing Date, except those representations and warranties that by their terms are made as of a specific date, which representations and warranties Borrower hereby remakes as of such date.

4.6 No Event of Default . No Event of Default or Default shall have occurred and be continuing on the Eighth Amendment Closing Date.

4.7 No Material Misstatements . Neither this Amendment nor any document delivered to Lender by or on behalf of Borrower to induce Lender to enter into this Amendment contains any untrue statement of a material fact or, taken as a whole with the other Loan Documents, omits to state a material fact necessary to make the statements herein or therein not misleading in light of the circumstances in which they were made.

4.8 No Material Adverse Change . As of the Eighth Amendment Closing Date, no Material Adverse Effect shall have occurred with respect to the Borrower and its Subsidiaries taken as a whole since December 31, 2018, including, without limitation, the Credit Parties’ ability to meet the projections delivered by the Borrower to the Lender prior to the Eighth Amendment Closing Date.

4.9 No Litigation . As of the Eighth Amendment Closing Date, except as set forth on Schedule 8.5 to the Credit Agreement, there shall not be any claim, action, suit, investigation, litigation, or legal proceeding pending or threatened in any court or before any arbitrator or governmental authority which relates to the legality, validity or enforceability of the Credit Agreement (as amended by this Amendment) or the transactions contemplated hereby or that, if adversely determined, is not adequately covered by insurance or would have a Material Adverse Effect on the Borrower or its Subsidiaries.

5.1 Reaffirmation of Security Documents . As of the Eighth Amendment Closing Date, Borrower hereby (a) acknowledges and reaffirms the execution and delivery of the Security Documents, (b) acknowledges, reaffirms and agrees that the security interests granted under the Security Documents continue in full force and effect as security for all indebtedness, obligations and liabilities under the Loan Documents, as may be amended from time to time, and (c) remakes the representations and warranties set forth in the Security Documents, except those representations and warranties that by their terms are made as of a specific date, which representations and warranties Borrower hereby remakes as of such date.

5.2 Entire Agreement; Binding Effect . The Credit Agreement, as amended by this Amendment, represents the entire understanding and agreement between the parties hereto with respect to the subject matter hereof. This Amendment supersedes all prior negotiations and any course of dealing between the parties with respect to the subject matter hereof. This Amendment shall be binding upon Borrower and its successors and assigns, and shall inure to the benefit of, and be enforceable by the Lender and its successors and assigns. The Credit Agreement, as amended hereby, is in full force and effect and, as so amended, is hereby ratified and reaffirmed in its entirety.

5.3 Severability . If any provision of this Amendment shall be determined by a court to be invalid, such provision shall be deemed modified to conform to the minimum requirements of applicable law.

5.4 Headings . The section headings inserted in this Amendment are provided for convenience of reference only and shall not be used in the construction or interpretation of this Amendment.

5.5 Counterparts . This Amendment may be executed by the parties hereto in separate counterparts (including those delivered by facsimile or other electronic means), each of which, when so executed and delivered, shall be an original, but all such counterparts shall together constitute one and the same instrument.

[signature page follows]

Eighth Amendment to Fifth Amended and Restated Credit Facility Agreement]

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be signed by their duly authorized officers as of the day and year first above written.

MANUFACTURERS AND TRADERS TRUST COMPANY

By: /s/ Michael D. Pick

Name: Michael D. Pick

Title: Vice President

IEC ELECTRONICS CORP.

By: /s/ Thomas L. Barbato

Name: Thomas L. Barbato

Title: Senior Vice President, Finance and Chief Financial Officer

Annual Meeting March 13, 2019

Cautionary Note Regarding Forward-Looking Statements References in this report to “IEC,” the “Company,” “we,” “our,” or “us” mean IEC Electronics Corp. and its subsidiaries except where the context otherwise requires. This presentation contains forward-looking statements. In some cases, you can identify forward-looking statements by terms such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “targets,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential” or “continue” or the negative of these terms or other similar expressions. These forward-looking statements include, but are not limited to, statements regarding future sales and operating results, future prospects, the capabilities and capacities of business operations, any financial or other guidance and all statements that are not based on historical fact, but rather reflect our current expectations concerning future results and events. The ultimate correctness of these forward-looking statements is dependent upon a number of known and unknown risks and events and is subject to various uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements. The following important factors, among others, could affect future results and events, causing those results and events to differ materially from those views expressed or implied in our forward-looking statements: business conditions and growth or contraction in our customers’ industries, the electronic manufacturing services industry and the general economy; variability of our operating results; our ability to control our material, labor and other costs; our dependence on a limited number of major customers; the potential consolidation of our customer base; availability of component supplies; dependence on certain industries; variability and timing of customer requirements; technological, engineering and other start-up issues related to new programs and products; uncertainties as to availability and timing of governmental funding for our customers; the impact of government regulations, including FDA regulations; risks related to the accuracy of the estimates and assumptions we used to revalue our net deferred tax assets in accordancewith the Tax Cuts and Jobs Act of 2017; the types and mix of sales to our customers; litigation and governmental investigations; intellectual property litigation; our ability to maintain effective internal controls over financial reporting; unforeseen product failures and the potential product liability claims that may be associated with such failures; the availability of capital and other economic, business and competitive factors affecting our customers, our industry and business generally; failure or breach of our information technology systems; and natural disasters. Any one or more of such risks and uncertainties could have a material adverse effect on us or the value of our common stock. For a further list and description of various risks, relevant factors and uncertainties that could cause future results or events to differ materially from those expressed or implied in our forward-looking statements, see our Annual Report on Form 10-K, our Quarterly Reports on Form 10-Q and our other filings with the Securities and Exchange Commission (the “SEC”). All forward-looking statements included in this presentation are made only as of the date indicated or as of the date of this presentation. We do not undertake any obligation to, and may not, publicly update or correct any forward-looking statements to reflect events or circumstances that subsequently occur or which we hereafter become aware of, except as required by law. New risks and uncertainties arise from time to time and we cannot predict these events or how they may affect us and cause actual results to differ materially from those expressed or implied by our forward-looking statements. Therefore, you should not rely on our forward-looking statements as predictions of future events. 2 IEC ELECTRONICS 2019© 2

Agenda • 2018 Overview • Performance Review • Strategic Initiatives • Q&A 3 IEC ELECTRONICS 2019© 3

Fiscal 2018 Highlights • Significantly increased backlog; highest in almost twenty years • Achieved highest fourth quarter revenue in 5 years • Enhanced profitability • On-boarded over 120 employees ‒ Additional 105 on-boarded to date in FY19 4 IEC ELECTRONICS 2019© 4

Revenue Growth Quarterly Revenue ($M) $34.2 $35.4 $31.8 $29.8 $28.4 $26.5 $27.6 $21.0 $21.4 $21.2 Q4 FY16 Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 Q1 FY18 Q2 FY18 Q3 FY18 Q4 FY18 Q1 FY19 Q4’18 Marked Highest Fourth Quarter Revenue in 5 Years; Momentum Continued into Q1’19 6 IEC ELECTRONICS 2019© 6

Backlog Growth Year-End Backlog ($M) $133.7 $91.6 $72.1 $54.1 FY2015 FY2016 FY2017 FY2018 Backlog Growth Continued into Q1’19 with Book-to-Bill of 1.6:1; Increased an additional 15% through Q1’19 7 IEC ELECTRONICS 2019© 7

Annual Net Income Growth Annual Net Income ($M) $10.4 $4.8 $0.1 $(9.5) $(10.2) $(15.1) FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 Three consecutive years of losses under previous management 3 Consecutive Yrs of Profitability following 3 Consecutive Yrs of losses resulting in a Cumulative Net Income improvement of $50.1M* 8 * Includes one-time $8.8M tax benefit in 2018 IEC ELECTRONICS 2019© 8

Competitive Landscape Portfolio Mix Consumer, Medical, Industrial, Computing, Auto Aerospace & Defense 18% * 14% Q1’19FY 18 14.3%12.1% 10% Gross Margin (TTM) Margin Gross 6% High Concentration High Concentration Mixed Portfolio * Source: Guru Focus as of November 2018 Note: Sparton’s margin reflects only its MDS segment IEC ELECTRONICS 2019© 9

Competitive Landscape (Cont.) YoY Average Revenue Growth Trends¹ 21.2% 7.5% Outpacing the EMS Industry 2.0% 2.5% 1 Source: Yahoo Finance November 2018 Tier I Tier II Tier III IEC Rev > $6B Rev > $350M Rev > $100M Average Gross Margin Trends² 12.4% 12.1% 10.1% 7.2% On Pace with Industry Leading Performance 2 Source: Yahoo Finance November 2018, Tier I Tier II Tier III IEC note DCO includes proprietary products. Rev > $6B Rev > $350M Rev > $100M Average Return on Equity Trends³ 13.7% 5.0% Outpacing the EMS Industry 3 Source: Yahoo Finance November 2018 -1.3% -3.0% Tier I Tier II Tier III IEC Rev > $6B Rev > $350M Rev > $100M IEC ELECTRONICS 2019© 10

• Leverage 100% US-Based Manufacturing Advantages • Domestic manufacturing required for many Aerospace & Defense programs • Intellectual property protection • “Local” manufacturing for high mix, higher margin programs • Focus on the Right Customers • Complex, highly engineered products • Long-term, strategic partners • Product life-cycles contribute to longer term relationships IEC ELECTRONICS 2019© 12

Our Target Markets: Aerospace & Defense Medical Industrial $3.1B TAM1 $6.0B TAM1 $8.8B TAM1 4.3% CAGR 5.8% CAGR 5.9% CAGR Highly Regulated Markets High Switching Costs 1 Represented by revenue observed in 2016 for contract manufacturers in the Americas. Ref. Worldwide Electronics Manufacturing Services Market – 2017 Edition IEC ELECTRONICS 2019© 13

Medical Aerospace & Defense • Resuscitation Systems • Weapons Platforms • Surgical Navigation Systems • Encrypted Communication Systems • Infusion Delivery Systems 22% • Targeting & Surveillance Systems 59% 19% Industrial Representative Customers • Semi-conductor Manufacturing Equipment • Transportation Tracking & Asset Monitoring IEC ELECTRONICS 2019© 14

• Increasing Opportunities with Existing Customers • Taking share from competitors due to operational excellence • Winning new programs • Expanding to new locations/divisions Top 10 Customers Revenue Profile  40% YoY  36% YoY FY17 FY18 FY19 Plan IEC ELECTRONICS 2019© 16

• Achieving High Customer Satisfaction Levels • Flexibility, responsiveness & operational execution are critical contributors IEC ELECTRONICS 2019© 17

• Robust Sales & New Opportunity Conversion Funnel • Rebuilt sales funnel for new programs and customers • Restructured sales and marketing platform in 2017 • Steady Backlog Improvement • Average Book to Bill FY 2018 1.5:1 +33% +85% $133M $54M $72M 9/30/16 9/30/17 9/30/18 IEC ELECTRONICS 2019© 18

Scale the Business Inventory Capital Management Expenditure • Anticipate leveraging B/S strength to • Continued investments to acquire inventory whenever required manufacture innovative technologies to support growth • Ability to mitigate supply chain challenges IEC ELECTRONICS 2019© 19

Scale the Business New State of Employee the Art Facility Onboarding • Expected completion by late 2019 • Committed to adding highly trained, technically adept employees as • Will increase capacity volumes increase • Will improve operational efficiencies • Growing opportunities in the business as well as a new facility position IEC • Expect to bolster workforce recruiting competitively to attract qualified candidates IEC ELECTRONICS 2019© 20

• Onboarding New Programs & Driving Efficiencies • Lengthy process development and customer acceptance timeline • Many new projects on-boarded in Fiscal 2018 • Margin performance expected to be enhanced once full production is reached 18-24 Month Process Margin Pressure Margin Expansion Receive Develop Robust Customer Low Rate Initial Full Production Materials Manufacturing Acceptance Production Runs Process for For Qualification Qualification Order IEC ELECTRONICS 2019© 21

Key Takeaways Strongest fourth quarter revenue in 5 years Highest level of backlog in almost 20 years Significant momentum entering 2019 Focus on core growth markets Initiatives underway to scale the business IEC ELECTRONICS 2019© 22

Thank you