On an unaudited basis, the Company reported revenue of $15.8 million for thequarter, operating income of $946,000 and net income of $532,000 or $0.06 pershare. This compares with revenue of $11.2 million, operating income of $393,000and net income of $420,000 or $0.05 per share for the quarter ending December28, 2007. The comparable quarters results for the prior year were favorablyimpacted by a $120,000 deferred tax charge; Pro forma net income without thedeferred tax charge would have been $300,000 or $0.03 per share W. Barry Gilbert, Chairman of the Board and CEO, stated, "We had a good quarterwith our operating margins increasing across the board. Our gross marginimproved to 14.1 as compared with our first quarters gross margin of 10.3 forQ1 2008. Operating income was 6 of sales versus 3.6 for the same period lastyear.
While some of the improvement resulted from product mix a portion of thechange was clearly due to improved manufacturing efficiency Our customer basecontinues to expand. During the quarter, we added a new customer in theAerospace sector. "We expect continued revenue growth during the balance of the year, and expectto further intensify our market focus in the medical technology sector in thecoming quarters As we all know, the economy is in a deep recession. While someof our customers are indeed experiencing significant difficulties we have othersthat continue to expand their commercial activity with us. Partly, this isattributable to increases in their end market activity but a portion is due toour superior performance as it appears that we are taking market share fromothers. We view this as recognition of our continuing commitment to serving themAbsolutely, Positively Perfect and On Time(sm)." "We have created a stronger Company, and believe the time may be near forapplying to re-list our common stock on the NASDAQ Capital Market.
We believe we meet all of the listing requirements but forthe $4.00 per share minimum bid price. At the forthcoming meeting ofshareholders, we are seeking shareholder approval to execute, a one, up to fourreverse split at any time before the 2010 shareholders meeting, at thediscretion of the Board. That reverse split would enable us to meet the minimumbid price. Unlike the typical company seeking a reverse split in an effort tomaintain its listing on NASDAQ while its operating performance is deteriorating,our operating performance has been accelerating. We continue to move in theright direction and we are confident that we are creating future value for ourshareholders and opportunity for our employees." As a full service EMS provider, AS9100 and IEC is ISO-9001:2000 registered, anda NSA approved supplier under the COMSEC standard. The Company offers itscustomers a wide range of services including design, prototype and volumeprinted circuit board assembly, material procurement and control, manufacturingand test engineering support, systems build, final packaging and distribution.Information regarding IECs first quarter 2009 results can be found on its website at foregoing, including any discussion regarding the Company's futureprospects, contains certain forward-looking statements that involve risks anduncertainties, including uncertainties associated with economic conditions inthe electronics industry, particularly in the principal industry sectors servedby the Company, changes in customer requirements and in the volume of sales toprincipal customers, the ability of the Company to assimilate acquiredbusinesses and to achieve the anticipated benefits of such acquisitions,competition and technological change, the ability of the Company to controlmanufacturing and operating costs, satisfactory relationships with vendors. TheCompany's actual results of operations may differ significantly from thosecontemplated by any forward-looking statements as a result of these and otherfactors, including factors set forth in the Company's 2008 Annual Report on Form10-K and in other filings with the Securities and Exchange Commission.